Which of the Following Statements Is FALSE

question 27

Multiple Choice

Which of the following statements is FALSE?

• A)In a direct lease,the lessor is the manufacturer (or a primary dealer)of the asset.
• B)The lease specifies any cancellation provisions,the options for renewal and purchase,and the obligations for maintenance and related servicing costs.
• C)If a firm already owns an asset it would prefer to lease,it can arrange a sale and leaseback transaction.
• D)With many leases,the lessor provides the initial capital necessary to purchase the asset,and then receives and retains the lease payments.

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Definitions:

Appellate Court

A higher court that reviews the decisions and outcomes of lower courts to ensure that the law was correctly applied and justice was properly administered.

Affirms

Confirms or publicly declares something to be true, correct, or of a certain value.

Dictum

A statement, opinion, or remark within a judicial decision that is not necessary for the decision itself, and therefore not legally binding as precedent.

Nonbinding

An agreement, decision, or result that does not legally compel compliance or enforcement.