Only Factors in the External Environment Determine What Actions We

question 71

True/False

Only factors in the external environment determine what actions we must take to make strategic choices for our organization.

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Definitions:

Off-Balance Sheet Financing

Off-balance sheet financing is the use of funding or financial activities not recorded on the company's balance sheet to keep debt ratios low.

Capitalizing A Lease

The process of recognizing a leased asset and related lease liability on the balance sheet, treating the lease as a purchase financed by a loan.

Capital Lease

A lease considered a purchase of an asset for accounting purposes, where the lessee acquires all risks and rewards associated with ownership.

Operating Lease

A leasing agreement allowing the use of an asset without ownership, typically involving payments for a shorter period than the asset's useful life.