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:

Precedent

A legal decision or case that serves as an example or authority for deciding subsequent cases involving similar facts or issues.

Executive Memorandum

An official document from an executive branch, such as the President or a governor, that provides directions or actions for government agencies to follow, less formal than an executive order.

President

The elected head of a republican state or the chief executive officer in certain organizations.

Congress

The legislative branch of the United States government, consisting of two houses: the Senate and the House of Representatives, responsible for making laws.