Which of the Following Is Probably Not a Good Reason

question 23

Multiple Choice

Which of the following is probably not a good reason for leasing instead of buying?

• A)Leasing may provide off-balance sheet financing.
• B)Leasing may reduce administrative and transaction costs.
• C)Leasing helps lessees avoid the AMT.
• D)All of these options are good reasons for leasing.

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Definitions:

Span of Control

The number of subordinates a manager or supervisor can effectively manage and control.

Administrative Costs

Expenses associated with daily operations of managing a business or organization, including office supplies, salaries of non-production staff, and utilities.

Customer Classification Departments

Divisions within a company that segment customers based on various criteria to tailor marketing and service delivery.

Mercy Medical Center

A healthcare institution providing medical care and services; without specific details, this can refer to any one of several hospitals by the same name in different locations.