In a Synthetic Lease a Special Purpose Entity (SPE) Is

question 16

True/False

In a synthetic lease a special purpose entity (SPE) is set up by a corporation that wants to acquire the use of an asset.The SPE borrows up to 97% of its capital, uses its funds to buy the asset, and then leases it to the sponsoring corporation on a short-term basis.This keeps both the asset and the debt off the sponsoring company's books.

---

Definitions:

Learning Disability

A neurological condition that affects a person's ability to receive, process, store, or respond to information, causing difficulties with learning.

Instrumental Conditioning

A learning process through which the strength of a behavior is modified by reinforcement or punishment; also known as operant conditioning.

Respondent Conditioning

A form of learning in which a stimulus becomes associated with a consequence, also known as classical conditioning.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.