When a Government Transfers the Rights and Obligations of an Asset

question 43

Multiple Choice

When a government transfers the rights and obligations of an asset to another legally separate governmental or private sector entity,the transaction is referred to as:

• A) A capital lease.
• B) An operating lease.
• C) A service concession arrangement.
• D) A sale-leaseback agreement.

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Definitions:

Tort Action

A legal lawsuit involving a civil wrong that causes a claimant to suffer loss or harm, resulting in legal liability for the person who commits the tortious act.

Foreseeable Risk

A hazard or threat that is known, or should have been known, under certain circumstances, necessitating its management or mitigation.

Successful Defense

A legal outcome where the defendant is found not guilty or manages to significantly mitigate charges or allegations in a legal case.

Liability

The state of being legally responsible for something, such as a debt or obligation.