Which of the Following Statements Is FALSE

question 27

Multiple Choice

Which of the following statements is FALSE?

• A)In a direct lease,the lessor is the manufacturer (or a primary dealer)of the asset.
• B)The lease specifies any cancellation provisions,the options for renewal and purchase,and the obligations for maintenance and related servicing costs.
• C)If a firm already owns an asset it would prefer to lease,it can arrange a sale and leaseback transaction.
• D)With many leases,the lessor provides the initial capital necessary to purchase the asset,and then receives and retains the lease payments.

---

Definitions:

Caterpillar ADEM

A proprietary engine management system developed by Caterpillar for controlling and optimizing engine performance.

Caterpillar CX

A model or series of power transmission products designed by Caterpillar, known for their reliability and performance in heavy machinery.

Reprogramming

The process of updating or modifying the software within a vehicle's electronic control units to improve performance or fix issues.

Hydromechanical Operation

Machinery or systems that combine hydraulic and mechanical principles to perform work, such as in certain types of transmissions or pumps.