Which of the Following Statements Is Not a Reason Identified

question 37

Multiple Choice

Which of the following statements is not a reason identified by Smith and Wakeman (1985) to explain leasing policy?

• A)There is an incentive to buy,rather than lease,specialised assets.
• B)Manufacturers who accept used assets as trade-ins offer the same comparative advantages to asset buyers.
• C)Leasing company-specific assets involves negotiation costs and other agency costs that can be significant because of the conflict between the lessor and lessee about the division between them in that part of the value of the asset which exceeds its value in alternative uses.
• D)None of the given options.