Which of the Following Is Probably Not a Good Reason

question 23

Multiple Choice

Which of the following is probably not a good reason for leasing instead of buying?

• A)Leasing may provide off-balance sheet financing.
• B)Leasing may reduce administrative and transaction costs.
• C)Leasing helps lessees avoid the AMT.
• D)All of these options are good reasons for leasing.

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Definitions:

Subrogation

The legal right for an insurer or third party to pursue a legal right or a claim against a wrongdoer on behalf of the insured party.

Expenditures

The act of spending or disbursing money, often related to business or government transactions.

Substantial Control

Significant influence or decision-making power over the management and operational policies of an entity, typically through ownership, contractual agreements, or other means.

Employee

An individual who is hired and paid by an employer to perform specific tasks or services.