Which of the Below Statements Is FALSE

question 28

Multiple Choice

Which of the below statements is FALSE?

• A) One possible way for the lessor to finance the purchase of the equipment is to provide all the financing from its own funds and therefore be at risk for 100% of the funds used to purchase the equipment.
• B) One possible way for the lessor to finance the purchase of the equipment is for the lessor to use only a portion of its own funds to purchase the equipment, and to borrow the balance from a bank or group of banks.
• C) Basically, leasing is a vehicle by which tax benefits can be transferred from the user of the equipment, who may not have the capacity to take advantage of the tax benefits associated with equipment ownership, to another entity who can utilize them.
• D) There are only two parties to a leveraged lease agreement: the lessee and the lender.

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Definitions:

Personality Traits

Persistent traits or inclinations that affect a person's actions in various contexts.

Conscientiousness

A characteristic of being reliable, dependable, and having a deep commitment to responsibility.

Big Five

A psychological framework that explains human personality via five wide-ranging traits: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Personality Psychology

A branch of psychology that studies personality and its variation among individuals, including traits, behaviors, and patterns of thinking.