Which of the Following Is True for a Corporation with a High

question 1

Multiple Choice

Which of the following is true for a corporation with a high credit rating considering owning versus leasing corporate real estate

• A) The company should probably use a mortgage.
• B) The company can probably issue corporate debt at a more favorable rate
• C) The company is probably better off leasing the property from someone with a lower credit rating.
• D) The company's credit rating does not effect the own versus lease decision.

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Definitions:

P

In economic terms, often stands for Price, which reflects the monetary cost of acquiring a good or service in the market.

Q

Often used to denote "quantity" in economic equations and models.

Money Supply

The entirety of monetary resources accessible in an economy during a specific period.

Rational

Characterized by clear and logical thinking, often with regard to fulfilling one's personal goals or making decisions based on empirical evidence and reasoning.