Examine the Following Statements

question 9

Multiple Choice

Examine the following statements:
(a) Under an operating lease,substantially all the risks and benefits of ownership
Of the leased asset are transferred to the lessee
(b) A finance lease is normally non-cancellable
(c) Under a finance lease,legal ownership of the asset must be transferred
To the lessee at the end of the lease
(d) The term of an operating lease usually covers 75% or more of the
Economic life of the leased asset

• A) Only (b) is correct
• B) Only (a), (b) and (c) are correct
• C) Only (a) and (d) are correct
• D) All are correct

Evaluate the conditions under which a cost center might be a more appropriate organizational design choice than a profit center.

Grasp the complexities involved in the performance evaluation of profit center managers and the impact of discretion in decision-making.

Understand the relationship between division profits and company-wide profits.

Recognize the role and incentives of managers within profit centers.

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Definitions:

Family Life Cycle Stage

The series of stages through which a family progresses over time, including single adulthood, marriage, parenthood, and later life.

Unattached Young Adult

An individual in late adolescence or early adulthood who is not currently engaged in a romantic relationship or closely bonded to a partner.

Marital Bliss

A state of great joy, fulfillment, and happiness within a marriage, characterized by strong bonds, mutual respect, and deep affection between partners.

Family Life Cycle

A series of stages through which a family might pass over time, including phases such as marriage, parenthood, and retirement among others.