All but One of the Following Are Reasons for Leasing

question 108

Multiple Choice

All but one of the following are reasons for leasing:

• A)Companies with a weak credit rating can obtain financing because the lessor retains title to the asset.
• B)Payments on a lease are variable, and therefore removes an additional element of uncertainty.
• C)The terms offered under a lease may be more attractive than those that a customer could get under a comparable loan.
• D)Leases provide the lessee with flexibility and insurance against obsolescence.

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Definitions:

Endoplasmic Reticulum

A network of membranous tubules within the cytoplasm of eukaryotic cells, involved in protein and lipid synthesis, and calcium storage.

Ribosomes

Cellular organelles that function as the site of protein synthesis, reading mRNA and assembling amino acids into proteins.

Golgi Apparatus

A cell organelle involved in modifying, sorting, and packaging proteins and lipids for secretion or use within the cell.

Vacuole

Membrane-bound sac, larger than a vesicle; usually functions in storage and can contain a variety of substances. In plants, the central vacuole fills much of the interior of the cell.