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:

Money-Demand Curve

Illustrates the relationship between the quantity of money people want to hold and the interest rate, showing how changes in the interest rate affect the demand for money.

Federal Reserve

The central banking system of the United States, responsible for implementing the country's monetary policy and regulating its financial institutions.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual percentage of the principal.

Federal Reserve

The Federal Reserve is the central bank of the United States, responsible for regulating the monetary and financial system.