Which of the Following Statements Is False

question 41

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:

Indeterminate Sentencing

A type of prison sentence that does not have a fixed length and can vary within a prescribed range.

Determinate

Having a fixed, definite, or clearly defined nature or limit.

Strict Liability

A legal doctrine holding parties liable for damages or injuries regardless of fault or intention, often applied in cases involving inherently dangerous activities or products.

Mens Rea

Latin for “guilty mind”; the mental state accompanying a wrongful behavior.