Which of the Following Statements Is False

question 20

Multiple Choice

Which of the following statements is false?

• A) Leasing allows the party best able to bear the risk to hold it. For example, small firms with a low tolerance for risk may prefer to lease rather than purchase assets.
• B) When the lessor is the manufacturer, a lease in which the lessor bears the risk of the residual value can improve incentives and lower agency costs.
• C) For leases in which the lessor retains a substantial interest in the asset's residual value, the lessee has more of an incentive to take proper care of an asset that is leased rather than purchased.
• D) Whether they appear on the balance sheet or not, lease commitments are a liability for the firm.

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Definitions:

Kiecolt-Glaser

Refers to psychologist Janice Kiecolt-Glaser, known for her research on stress and its effects on the human immune system.

Alzheimer's Caregivers

Individuals who provide care and support to those with Alzheimer's disease, often involving daily assistance, emotional support, and managing medications or therapy.

Immune System

The complex network of cells, tissues, and organs that protects the body against infections and diseases.

Immune System

A complex network of cells and proteins that defends the body against infection.