Which of the Following Statements Is False

question 56

Multiple Choice

Which of the following statements is false?

• A) Absent market imperfections, leases represent another form of zero-NPV financing available to a firm, and the Modigliani-Miller propositions apply: leases neither increase nor decrease firm value, but serve only to divide the firm's cash flows and risks in different ways.
• B) In a perfect market, the cost of leasing is equivalent to the cost of purchasing and reselling the asset.
• C) Each lease agreement can be tailored to fit the precise nature of the asset and the needs of the parties at hand.
• D) Features of leases will be priced as part of the lease payment. Terms that give valuable options to the lessee lower the amount of the lease payments, whereas terms that restrict these options will raise them.

---

Definitions:

Hacked

The unauthorized access or modification of computer systems or data, typically with malicious intent.

Control Theory

A theory in sociology and criminology that posits individuals refrain from deviant behavior due to the presence of social controls that encourage conformity.

Regulate

To control or maintain the rate or speed of a machine or process so that it operates properly; to control something, especially by making it work in a particular way.

Own Behavior

Refers to an individual's actions or conduct, typically considered from the perspective of self-monitoring or self-awareness.