The Economic Environment Affects the Performance of an Organization, as Was

question 45

Multiple Choice

The economic environment affects the performance of an organization, as was noted during the recent recession.Which of the following factors is cited as one of the causes of the recent recession triggered in the home mortgage markets in the United States?

• A) high interest rates on mortgages
• B) massive global liquidity
• C) lack of leverageability for business borrowers
• D) difficulty in securing housing credit

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Definitions:

Maintenance

The tasks and actions taken to preserve or restore equipment, systems, or structures to an operational condition or to prevent failure.

Tax-oriented Lease

A leasing arrangement designed primarily to exploit tax advantages, often allowing the lessee to deduct lease payments as business expenses.

Financial Lease

A type of lease in which the lessee assumes both the risks and rewards of ownership of the asset, typically for its entire useful life.

Lessor

The individual or entity that rents or leases their property or asset to another person, referred to as the lessee.