Which of the Following Statements Is FALSE

question 13

Multiple Choice

Which of the following statements is FALSE?

• A)If a firm only needs to use the asset for a short time,it is probably less costly to lease it than to buy and resell the asset.
• B)While owners of assets are likely to resell them only if the assets are "lemons," a short-term lease can commit the user of an asset to return it regardless of its quality.In this way,leases can help mitigate the adverse selection problem in the used goods market.
• C)Car dealerships are in a better position to sell a used car at the end of a lease than a consumer is.
• D)If the asset's tax depreciation deductions are faster than its lease payments,there are tax gains from a true tax lease if the lessor is in a lower tax bracket than the lessee.

---

Definitions:

Teams

Groups of individuals organized to work together to achieve a specific goal or set of objectives.

Organisations

Groups of individuals structured in a systematic way to achieve specific goals or tasks through collective effort.

Cohesiveness

The degree to which members of a group or team are united and committed to common goals, enhancing group performance.

Norms

Norms are shared expectations and rules that guide behavior of people within social groups, organizations, or cultures.