Which of the Following Is an Advantage to Renting Capital

question 46

Multiple Choice

Which of the following is an advantage to renting capital assets?

• A) Renting usually protects you from unexpected costs of repairs.
• B) You have an ownership position.
• C) You can exercise control over cash outflows.
• D) The dollars paid in rent will not exceed the dollars you would spend to own the asset.

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Definitions:

Steel Plow

An agricultural implement invented by John Deere, making it easier to till the tough prairie soil of the United States.

Factory System

A method of manufacturing using machinery and division of labor, characteristic of the Industrial Revolution, and significantly evolved from previous methods of manual and home-based production.

Power-Driven Machinery

Machines that operate using an external source of power, such as electricity, steam, or fuel, allowing for more efficient production processes in various industries.

Factory Town

A settlement where the main source of employment and community life centers around manufacturing plants or factories.