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.

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Definitions:

Least Risky

Refers to the option or decision that poses the lowest level of risk or danger.

Constructive Direction

A guidance method that aims to improve performance by providing positive feedback and clear instructions.

Productivity Improvement

A process of increasing the efficiency and effectiveness of operations, usually by optimizing workflows, technology, and employee skills.

Commitment

A dedication or obligation that restricts freedom of action, often demonstrated through loyalty or an agreement to perform.