A Lease That Gives the Lessee the Option to Purchase

question 56

Multiple Choice

A lease that gives the lessee the option to purchase the asset at its fair market value at the termination of the lease is called a:

• A)fair market value cap lease.
• B)fair market value lease.
• C)$1.00 out lease.
• D)fixed price lease.
• E)synthetic lease.

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Definitions:

Marketplace

An arena for buying and selling goods and services, which can be physical like a store or digital like an online platform.

Target Market

A specific group of consumers at which a company aims its products and services.

Profit

The financial gain obtained when the revenue from business operations exceeds the expenses, taxes, and costs associated with running the business.

Skilled Employees

Workers who possess specialized training, knowledge, or expertise, making them valuable assets to organizations in achieving operational efficiency and competitive advantage.