Some Assets Are Leased More Than Others Because

question 23

Multiple Choice

Some assets are leased more than others because:

• A)the value of the asset under a lease is not highly affected by term of use or maintenance decisions.
• B)a lease may be used to fool clients into "buying" high priced assets above market value.
• C)leasing allows sellers to attract clients with low prices as the basis for setting the contract.
• D)Both A and B.
• E)Both A and C.

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Definitions:

Nation's Wealth

The total value of all assets owned by the inhabitants of a country, including both financial assets and physical assets.

Percentage

A percentage is a way of expressing a number as a fraction of 100.

Expected Utility

The sum of the utilities coming from all possible outcomes of a deal, weighted by the probability of each occurring.

Risk-loving

An inclination to engage in behaviors or decisions that involve exposure to uncertainty, with the potential for higher rewards.