Which One of the Following Statements Is Correct Concerning the Lease

question 63

Multiple Choice

Which one of the following statements is correct concerning the lease versus buy decision?

• A)The lessor is primarily concerned with returning the asset at the end of the lease term without incurring any additional charges.
• B)The lessor is primarily concerned about the use of the asset.
• C)If Dell Computer became a lessor of its own computers it would be engaging in direct leasing.
• D)A firm should always purchase, rather than lease, any asset that has a projected positive salvage value at the end of the relevant period of use.
• E)Lessors provide a source of financing for lessees.

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Definitions:

Supervisor

A role within organizations responsible for overseeing the performance and activities of employees, usually within a specific department or area.

Clarity And Control

Refers to the clear understanding and management of tasks, roles, and expectations within an organization or project to ensure efficiency and achievement of objectives.

Directive Style

A leadership approach characterized by giving clear, explicit instructions and closely supervising tasks, with a focus on task achievement and compliance.

Path-Goal Theory

A leadership theory that suggests a leader's behavior is motivated by the desire to guide their followers on a path to achieve personal and organizational goals.