Which of the Following Statements Is False

question 9

Multiple Choice

Which of the following statements is false?

• A) If a firm only needs to use the asset for a short time, it is probably less costly to lease it than to buy and resell the asset.
• B) While owners of assets are likely to resell them only if the assets are "lemons," a short-term lease can commit the user of an asset to return it regardless of its quality. In this way leases can help mitigate the adverse selection problem in the used goods market.
• C) Car dealerships are in a better position to sell a used car at the end of a lease than a consumer is.
• D) If the asset's tax depreciation deductions are faster than its lease payments, there are tax gains from a true tax lease if the lessor is in a lower tax bracket than the lessee.

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Definitions:

Biological Perspective

A way of looking at psychological issues by examining the biological bases of behavior, including genetics, brain structures, and biochemical processes.

Extinguish

In psychological terms, to diminish or eliminate a conditioned response, often through repeated exposure to the conditioned stimulus without the unconditioned stimulus.

Fear Of Driving

An anxiety disorder characterized by an intense fear or phobia of driving a vehicle.

Post-Traumatic Stress Disorder

A mental health condition triggered by experiencing or witnessing a terrifying event, characterized by flashbacks, nightmares, severe anxiety, and uncontrollable thoughts about the event.