If a Financial Lease Analysis Shows a Positive Result, Which

question 30

Multiple Choice

If a financial lease analysis shows a positive result, which one of the following is true?

• A)The user should own the asset
• B)The lessor should own the asset
• C)Given the asset choice, the lease terms favour leasing
• D)Leasing is preferable so long as there is no salvage

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Definitions:

Legal Value

Refers to something of worth that is recognized by law, often in the context of contracts where it pertains to the exchange of goods, services, or promises that are enforceable.

Preexisting Duty

An obligation that one party already owes to another under the law or an existing contract, which cannot serve as new consideration for a new contract.

Preexisting Duty Rule

A legal principle stating that an agreement to do something that one is already legally obligated to do is not valid consideration for a new contract.

Superlative Work

Work of the highest quality or degree, demonstrating excellence or outstanding performance.