Which of the Following Is NOT an Advantage of Leasing

question 7

Multiple Choice

Which of the following is NOT an advantage of leasing from the lessor's perspective (compared with offering a straight loan) ?

• A) Leasing has a relatively low default risk.
• B) Administration costs may be lower for a lease than for a straight loan.
• C) The return to the lessor may be higher than for a straight loan.
• D) The lessor may use the funds for other investment opportunities.

Understand the role of incentives and property rights in economic systems.

Recognize the implications of opportunity costs beyond monetary terms.

Identify the principles behind economic structures, resource ownership, and coordination of economic activities.

Understand the shifts in production possibilities frontier due to changes in labor force size or technology.

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Definitions:

Cumulative Trauma Disorders

Injuries involving tendons of the fingers, hands, and arms that become inflamed from repeated stresses and strains

Repetitive-motion Injury

Physical harm or damage resulting from the repeated movement or strain of a particular part of the body, commonly occurring in the workplace.

Carpal Tunnel Syndrome

A medical condition caused by the compression of the median nerve as it travels through the wrist at the carpal tunnel, leading to numbness, tingling, and weakness in the hand.

Burnout

The most severe stage of distress, manifesting itself in depression, frustration, and loss of productivity.