Entering into a Lease Is an Example of Off-Balance-Sheet Financing

question 119

True/False

Entering into a lease is an example of off-balance-sheet financing.

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Definitions:

Acquiring Firm

A firm that acquires or gains control over another business by means of a merger, acquisition, or takeover.

Parent

The controlling company in a group of companies, which owns a controlling interest in one or more subsidiaries.

Vertical Merger

A business strategy where a company merges with another company that operates in the same industry but at a different stage of the production process.

Supplier-Customer Relationships

The interactions and transactions between a provider of goods or services and the entity that purchases them.