Financial Leases Are a Source of Financing in the Sense

question 75

Multiple Choice

Financial leases are a source of financing in the sense that:

• A)The lessor must find a source of financing to buy the asset
• B)The lessee must borrow money for his first lease payment
• C)The lessee avoids buying, but gets the use of the asset through financing
• D)The lessor can use the lease payments as collateral to borrow

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Definitions:

Four Perspectives

Refers to a framework often used in business and management to evaluate an organization from multiple angles, commonly including financial, customer, internal processes, and learning and growth aspects.

Effectiveness

The degree to which an organization, such as a nonprofit, achieves its stated objectives and goals efficiently.

Efficiency

The ability to accomplish a task or goal with the minimum expenditure of time and resources; often related to optimizing processes and productivity.

Social Constructionist Approach

A theory in sociology and philosophy suggesting that social phenomena are created, institutionalized, and made into tradition by individuals within a society.