Which of the Following Statements Is Not True of a Financial

question 65

Multiple Choice

Which of the following statements is not true of a financial lease?

• A)It can be cancelled after the equipment is no longer needed
• B)It is a source of financing
• C)It is binding obligation for the lessee
• D)It lessee has the asset for most of its economic life

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Definitions:

Foot-In-The-Door Technique

A persuasion strategy that involves getting a person to agree to a small request as a precursor to getting them to accede to a larger request.

Fundamental Attribution Error

A cognitive bias that involves overemphasizing personality-based explanations for behaviors observed in others while underestimating situational explanations.

Urban Ethnic Neighbourhoods

Areas within cities that are predominantly inhabited by members of the same ethnic or cultural group, often retaining distinctive cultural traits.

Lowball Technique

A persuasive strategy where a more attractive offer is initially presented to get an agreement, then terms are made less favorable.