Ajax Rentals Borrows Money to Purchase Equipment Which It Then

question 1

Multiple Choice

Ajax Rentals borrows money to purchase equipment which it then leases to customers. Ajax must pay its loan payments on this equipment even if the lessees fail to pay their lease payments. Which one of the following terms best describes one of these leases?

• A) Single-investor lease
• B) Sale and leaseback arrangement
• C) Operating lease
• D) Perpetual lease
• E) Straight lease

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Definitions:

Keg

A keg is a small barrel traditionally used for transporting and storing large quantities of liquid, especially beer.

Pizzas

A popular dish made from flattened dough topped with tomato sauce, cheese, and various other ingredients, baked at a high temperature.

Production

The process of translating raw materials or inputs into finished goods or services through the application of labor, tools, and technology.

Specialize

involves focusing on a particular area of production or service in which a person or country holds a comparative advantage, allowing for increased efficiency and output.