If a Lessor Borrows Money from a Lender on a Nonrecourse

question 12

Multiple Choice

If a lessor borrows money from a lender on a nonrecourse basis to purchase an asset that will be leased to another party, then the:

• A) lessor is responsible for the loan payments whether or not the lessee pays the lease payments.
• B) lessee must pay both the lease payment and the loan payment.
• C) loan is considered paid in full if the lessee discontinues making the lease payments or terminates the lease early.
• D) lessor is only obligated to pay the loan payments as long as the lessor is collecting the lease payments.
• E) lender must pursue the lessor if the lessee fails to make the agreed upon lease payments.

---

Definitions:

Bullied

The experience of being intimidated, harassed, or abused by others, typically in a social, school, or work context.

Disclosed

Made known or revealed, often something that was previously secret or private.

Fine Motor Skills

The ability to perform detailed movements with the small muscles of the hands and fingers, such as writing or buttoning a shirt.

Kinesthetic

Related to or involving the perception of body movements and the sense of muscle movement, position, and strain.