Scenarios Assist Managers

question 28

Multiple Choice

Scenarios assist managers:

• A)in becoming aware of the critical elements of the external forces.
• B)in brainstorming various "what-if" situations.
• C)in preparing budgets.
• D)in manufacturing,and marketing.
• E)in becoming aware of the critical elements of the external forces and in brainstorming various "what-if" situations.

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Definitions:

Bargain Purchase Option

An option in a lease agreement that allows the lessee to purchase the leased asset at a price significantly lower than its expected fair market value at the end of the lease term.

Executory Costs

Expenses related to ongoing maintenance and administration of a lease that are neither fixed nor included in the lease payments.

Annual Payments

Yearly amounts paid or received over the term of a financial instrument or agreement.

Lessor

The party in a lease agreement who owns the leased asset and grants the lessee the right to use the asset for a specified term in exchange for payment.