Which of the Following Is a Valid Argument for Leasing

question 15

Multiple Choice

Which of the following is a valid argument for leasing?

• A)avoiding capital expenditure controls
• B)preserving capital
• C)improved incentives
• D)reducing leverage through off-balance-sheet financing
• E)increased resale costs

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Definitions:

Capital

Financial assets or the financial value of assets, such as cash and goods, working to produce further wealth or used in the production of goods and services.

Comparative Advantage

The ability of an individual, company, or country to produce a good or service at a lower opportunity cost than competitors, leading to specialized production and trade.

Production Possibilities

Different mixtures of products and services that an economy can generate with its current resources and technological capabilities.

Fish

Aquatic animals that are primarily gilled and often harvested for food, sport, or aquariums.