Provide a Short Answer to Each of These Questions

question 50

Essay

Provide a short answer to each of these questions.Be sure to fully explain your answer.
Describe how the separation of ownership and control came about.

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Definitions:

Lease Agreements

Contracts between a lessor and a lessee that grant the lessee the right to use an asset for a specific period in exchange for payment.

Lower Taxes

Reductions in the amount of tax imposed by a governmental authority.

Cash Flows

The total amount of money being transferred into and out of a business, especially affecting its liquidity.

Financial Lease

A financial lease is a lease in which the lessee has substantially all the risks and rewards incidental to ownership of the leased asset, often with an option to purchase the asset at the end of the lease term.