Which One of the Following Is a Valid Statement About

question 39

Multiple Choice

Which one of the following is a valid statement about leasing in Canada?

• A)Less than 5% of machinery and equipment in Canada is leased
• B)Lessors prefer to keep equipment at the end of a lease in order to lease it again
• C)Lessees typically purchase the asset at the end of the lease
• D)Operating leases are particularly useful in the long term

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Definitions:

Futures Contracts

Agreements to buy or sell an asset at a future date for a price that is determined today.

Hedge Cost

The expense associated with implementing a hedging strategy to minimize or manage financial risk.

Bushels

A unit of volume that is used in the United States for measuring agricultural commodities.

Swap Contract

A financial agreement where two parties exchange liabilities or cash flows from two different financial instruments.