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.