Which of the Following Statements Is FALSE

question 3

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 lessor 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:

Inspire

To imbue an individual with the motivation or capability to perform or experience a particular action, especially one that is creative or advantageous.

Expertise

A high level of knowledge or skill in a particular domain acquired through experience or training.

Emotional Intelligence

The ability to understand and manage your own emotions, as well as recognize and influence the emotions of those around you.

Understand One's Emotions

The capability to identify, assess, and acknowledge one's own emotional state, which is essential for emotional intelligence.