Which of the Following Is Not an Advantage of a Lease

question 23

Multiple Choice

Which of the following is not an advantage of a lease financing arrangement?

• A) Companies with losses can still depreciate equipment if leased from a finance company.
• B) Repossession is easier in a lease-finance arrangement because the finance company already owns the equipment.
• C) Finance companies are in a good position to sell a repossessed asset, especially if they are a subsidiary of the equipment manufacturer.
• D) The lessee often does not have to make as large of an upfront payment, relative to a straight loan.

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Definitions:

Immediate Context

The direct or surrounding environment in which something exists or occurs, which can significantly influence its meaning or effect.

Delayed Context

Delayed Context involves the understanding or interpretation of information or situations that becomes clear or relevant after a time delay, revealing its significance later on.

Deaf Children

Children who have a significant hearing loss that affects their ability to process linguistic information through hearing.

Sign Language

A system of communication using visual gestures and signs, utilized primarily by deaf and hard-of-hearing people.