Which of the Following Statements Is False

question 18

Multiple Choice

Which of the following statements is false?

• A) In a leveraged lease the lessor borrows from a bank or other lender to obtain the initial capital for the purchase, using the lease payments to pay interest and principal on the loan.
• B) In some circumstances, the lessor is not an independent company but rather a separate business partnership, called a special-purpose entity (SPE), which is created by the lessee for the sole purpose of obtaining the lease.
• C) In a direct lease, the lessor is not the manufacturer, but is often an independent company that specializes in purchasing assets and leasing them to customers.
• D) SPEs are commonly used in synthetic leases, which are designed to obtain specific accounting and tax treatment.

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Definitions:

Taylor's Approach

A management theory developed by Frederick Winslow Taylor, emphasizing scientific studies of tasks to increase productivity.

Increasing Efficiency

The process of improving the capability of a system or process to produce the desired output with minimum input or effort.

World War II

A global conflict that lasted from 1939 to 1945, involving most of the world's nations and culminating in significant changes to the geopolitical landscape.

Workplace Situation

The conditions and circumstances that occur within a place of employment.