A Lease in Which the Lessor Is the Manufacturer (Or

question 39

Multiple Choice

A lease in which the lessor is the manufacturer (or a primary dealer) of the asset is called a:

• A)sales-type lease.
• B)direct lease.
• C)sale and leaseback.
• D)leveraged lease.
• E)synthetic lease.

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Definitions:

Partnership Form

A type of business entity where two or more individuals share ownership and the responsibilities of running the business.

Limited Liability

A legal structure that limits the financial liability of the owners of a business to the amount of money they have invested in the business.

Continuous Existence

A characteristic of corporations that allows them to outlast the lives of their individual members or owners, enabling ongoing operations over time.

Transferring Ownership

The process of legally moving the title of an asset or property from one entity or individual to another.