Which of the Following Statements Is False

question 57

Multiple Choice

Which of the following statements is false?

• A) Leases may include early cancellation options that allow the lessee to end the lease early (perhaps for a fee).
• B) The cost of the lease will depend on the asset's residual value, which is its book value at the end of the lease.
• C) Leases may allow the lessee to trade in and upgrade the equipment to a newer model at certain points in the lease.
• D) Leases may contain buyout options that allow the lessee to purchase the asset before the end of the lease term.

---

Definitions:

State of Incorporation

The specific state within a country where a corporation is registered to operate, abiding by its legal framework and benefiting from its corporate laws.

Franchisor

An entity that grants the right to operate a business under its trademark and brand name to another party, known as the franchisee.

Small Business Owner

An individual who owns and operates a business with a small number of employees and relatively lower volume of sales.

Not-for-profit Corporations

Organizations that operate for purposes other than making a profit for its owners or shareholders, often focusing on charitable, educational, or social objectives.