The Most Important Issue That Makes It Possible for Both

question 86

Multiple Choice

The most important issue that makes it possible for both a lessor and lessee to gain from a financial lease arrangement is (aside from risk) :

• A)The lessee's better cash flow
• B)The lessor's purchasing power for leased assets
• C)The lessee's higher marginal tax rate
• D)The lessor's higher marginal tax rate

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Definitions:

Greater Rewards

Refers to the concept that more significant efforts or contributions within a system or society are often compensated with higher rewards.

Ability and Talent

Refers to the inborn potential or acquired skills that individuals possess, allowing them to perform certain tasks or activities with ease and effectiveness.

Low Rank Positions

Low rank positions refer to jobs or roles within an organization that are at the bottom of the hierarchical structure, often involving less responsibility and requiring fewer qualifications.

Kingsley Davis

An American sociologist and demographer known for his work on population theory and the study of family structure and urbanization.