Kate Is Leasing Some Equipment from Ajax Leasing for a Period

question 30

Multiple Choice

Kate is leasing some equipment from Ajax Leasing for a period of one-year.Ajax pays the maintenance,taxes,and insurance costs for this equipment.The life of the equipment is 7 years.Which type of lease does Kate have?

• A)open
• B)straight
• C)operating
• D)financial
• E)tax-oriented

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Definitions:

Kelley's Covariation Model

This model proposes that people attribute behavior to factors that covary most closely with, or appear to cause, that behavior, considering consensus, distinctiveness, and consistency information.

Consensus

A general agreement among a group of people or within a community, often reached after discussion and consideration of various perspectives.

Distinctiveness

the quality or condition of being clearly different or unique, setting someone or something apart from others.

Kelley's Covariation Model

A psychological theory that explains how individuals attribute cause to events based on the consistency, distinctiveness, and consensus of the event.