Which of the Following Statements Is FALSE

question 18

Multiple Choice

Which of the following statements is FALSE?

• A)Leasing allows the party best able to bear the risk to hold it.For example,small firms with a low tolerance for risk may prefer to lease rather than purchase assets.
• B)When the lessor is the manufacturer,a lease in which the lessor bears the risk of the residual value can improve incentives and lower agency costs.
• C)For leases in which the lessor retains a substantial interest in the asset's residual value,the lessee has more of an incentive to take proper care of an asset that is leased rather than purchased.
• D)Whether they appear on the balance sheet or not,lease commitments are a liability for the firm.

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Definitions:

Ageist Attitudes

Prejudices or discrimination against individuals or groups based on their age, often resulting in stereotyping and limiting opportunities.

Informed Consent

A process ensuring participants are fully aware of the potential risks and implications involved in a study or procedure before agreeing to participate.

Voluntary Participation

The principle that individuals freely choose to participate in an activity, study, or research without coercion or undue influence.

Hypothesis

A tentative explanation or prediction that can be tested through scientific research.