Which of the Following Is Not a Normally Attractive Feature

question 58

Multiple Choice

Which of the following is not a normally attractive feature of an operating lease?

• A)The lessee has the option to cancel
• B)The lessee only needs the equipment for a short time
• C)The lessee can't afford to buy the asset
• D)The lessor offers superior and cheaper maintenance than the lessee can perform

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Definitions:

Surety

A person or entity that takes responsibility for another's performance of an obligation, such as repaying a loan, or for the accuracy of a statement.

Interest

The charge for borrowing money, typically a percentage of the amount lent.

Guarantor

A party that agrees to be responsible for the debt or obligation of another if the original obligor fails to meet their obligations.

Statute of Frauds

A legal principle that requires certain types of contracts to be executed in writing and signed by the party to be charged.