If the Lessor Borrows Much of the Purchase Price of a Leased

question 3

Multiple Choice

If the lessor borrows much of the purchase price of a leased asset, the lease is called:

• A) a leveraged lease.
• B) a sale-and-leaseback.
• C) a capital lease.
• D) a nonrecourse lease.

---

Definitions:

Nominal Voltage

Nominal voltage refers to the standard or designated voltage level at which an electrical device or system is designed to operate under normal conditions.

Rated Horsepower

The official power output of an engine or motor as certified by the manufacturer, indicating its performance capability.

Heat Generated

The amount of thermal energy produced as a result of electrical resistance, mechanical friction, or chemical reactions.