Under Which Circumstances Will a Lessor Likely Charge Higher Lease

question 34

Multiple Choice

Under which circumstances will a lessor likely charge higher lease rates?

• A)if the lessor's tax rate increases
• B)if the cost of borrowing increases
• C)if the residual value of the asset increases
• D)if the purchase price of the asset decreases

---

Definitions:

Second Job

Employment taken in addition to one's primary job to supplement income, often requiring balancing multiple work schedules.

Full Time

Refers to employment where individuals work a complete or standard number of hours considered typical for the job, usually around 35 to 40 hours per week.

Business Profits

The monetary surplus achieved by a company after all operating expenses, taxes, and costs have been subtracted from total revenue.

Partners

Individuals or entities who share ownership and responsibilities in a business or venture.