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.