Which of the Following Is True of a Finance Lease

question 75

Multiple Choice

Which of the following is true of a finance lease?

• A) It involves leasing out money to a lessee.
• B) The lessor is the supplier of goods.
• C) It consists of a lessor, a lessee, and a supplier.
• D) The lessee acquires the title of the goods.

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Definitions:

Optimal Allocation

The most efficient distribution of resources and services, maximizing the benefit from their use.

External Costs

Costs not reflected in the market price of goods or services, borne by a third party or society at large.

Competitive Market

A market structure characterized by a large number of buyers and sellers, where no single entity can significantly influence prices or market conditions.

Government Intervention

The involvement of government in the market, aimed at correcting market failures, redistributing income, or achieving societal goals.