Which One of the Following Statements Is Correct

question 59

Multiple Choice

Which one of the following statements is correct?

• A) The lessor is primarily concerned with returning the asset at the end of the lease term without incurring any additional charges.
• B) The lessor is primarily concerned about the use of the asset.
• C) If a computer manufacturer leased computers it built to others, it would be engaging in leveraged leasing.
• D) A firm should always purchase, rather than lease, any asset that has a projected positive salvage value at the end of the relevant period of use.
• E) Lessors provide a source of financing for lessees.

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Definitions:

Bad Apple Effect

The phenomenon where the negative behavior of one individual can impact and deteriorate the entire group's behavior or performance.

Withhold Effort

Refers to deliberately holding back or not fully applying one's effort or capabilities in a task or situation.

Free Rider Effect

A situation where some individuals benefit from resources or services without contributing to the cost.

Proportional Share

An allocation method where resources, rewards, or responsibilities are distributed among parties based on a predefined ratio or proportion.