Which of the Following Statements Is FALSE

question 36

Multiple Choice

Which of the following statements is FALSE?

• A)By offering assets together with complementary services,lessors can achieve efficiency gains and offer attractive lease rates.
• B)Assets leased under a true lease are afforded bankruptcy protection and cannot be seized in the event of default.
• C)Because of the higher recovery value in the event of default,a lessor may be able to offer more attractive financing through the lease than an ordinary lender could.
• D)Lessors often have efficiency advantages over lessees in maintaining or operating certain types of assets.

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Definitions:

Cars

Motor vehicles with four wheels designed primarily for passenger transportation and commonly powered by internal combustion engines.

Absolute Advantage

The ability of an individual, company, or country to produce a good or service more efficiently than competitors, using fewer resources.

Lumber

Lumber that has been manufactured into planks and beams, marking a step in the journey of producing wood products.

Comparative Advantage

The ability of an individual, company, or country to produce a particular good or service at a lower opportunity cost than others.