A Typical Lease Agreement Will Always Set Out All of the Following

question 21

Multiple Choice

A typical lease agreement will always set out all of the following except:

• A) who is responsible for the payment of maintenance and repair costs, insurance and taxes
• B) that the lease is non-cancellable by either party
• C) the amount and timing of the lease (rental) payments
• D) the period of the lease

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Definitions:

Explicit Cost

A cost that requires an outlay of money.

Economic Profit

Revenue minus the opportunity cost of resources used; usually less than the accounting profit.

Accounting Profit

Revenue minus explicit cost.

Factors of Production

The resources used in the creation of goods and services, traditionally categorized into land, labor, capital, and entrepreneurship.