Off Balance Sheet Financing May Involve Either

question 193

Multiple Choice

Off balance sheet financing may involve either:

• A) An operating lease.
• B) A special purpose entity.
• C) Both an operating lease and a special purpose entity.
• D) Neither an operating lease nor a special purpose entity.

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Definitions:

Perfectly Inelastic

A market situation where the quantity demanded or supplied is completely unresponsive to price changes.

Demand Determined

A market characteristic where the quantity of products or services provided is primarily set by the level of demand.

Fixed Supply

A situation where the quantity of a specific good available in the market cannot be altered in the short term.

Labor Productivity

A measure of economic performance that compares the amount of goods and services produced with the number of hours worked.