An Exit Strategy Is a Plan for a Firm to Leave

question 5

True/False

An exit strategy is a plan for a firm to leave the market.
Indicate the answer choice that best completes the statement or answers the question.

---

Definitions:

Tax Rate

The percentage at which an individual or corporation is taxed.

Lease Asset

An asset that is acquired under a lease agreement wherein the lessee has the right to use the asset for a specified period.

Lease Liability

An obligation representing future lease payments for the use of assets, recognized on the balance sheet by lessees under new accounting standards.

Capital Lease

A lease agreement that grants a lessee essentially all the risks and rewards of ownership, so it's accounted for on the balance sheet as an asset and liability.