Which of the Following Statements Is FALSE

question 3

Multiple Choice

Which of the following statements is FALSE?

• A)In a leveraged lease,the lessor borrows from a bank or other lender to obtain the initial capital for the purchase,using the lease payments to pay interest and principal on the loan.
• B)In some circumstances,the lessor is not an independent company but rather a separate business partnership,called a special-purpose entity (SPE),which is created by the lessor for the sole purpose of obtaining the lease.
• C)In a direct lease,the lessor is not the manufacturer,but is often an independent company that specializes in purchasing assets and leasing them to customers.
• D)SPEs are commonly used in synthetic leases,which are designed to obtain specific accounting and tax treatment.

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Definitions:

Rising Mantle

The upward movement of the Earth's mantle, often leading to volcanic activity.

Divergent Boundary

A plate-tectonic boundary in which two plates move apart (diverge) relative to one another.

Convergent Boundary

A tectonic plate boundary where two plates move toward each other, often resulting in mountain building, earthquakes, or volcanic activity.

Transform Boundary

A type of tectonic plate boundary where two plates slide past each other horizontally.