A Sales-Type Lease Differs from a Direct Financing Lease in One

question 97

Multiple Choice

A sales-type lease differs from a direct financing lease in one respect:

• A)The lessor receives a manufacturer's or dealer's profit.
• B)The lessor receives more interest than on a direct financing lease.
• C)The lessor receives less interest than on a direct financing lease.
• D)The lessor uses a longer amortization period than on a direct financing lease.

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Definitions:

High-draw Items

Products or goods that consistently generate high demand from consumers or businesses.

Customer Exposure

The extent to which customers are aware of, have access to, or experience a product or service.

Focused Factory

A facility designed to produce similar products or components.

Product Facility

Product facility denotes a place, such as a factory or warehouse, where products are manufactured, processed, or stored for distribution.