Shelton Engines Inc.has built a new model of engines that can withstand more heat than the competing engines in its class.Lokin Inc., a sports car manufacturer, ________ the equipment from Shelton Engines Inc.for $1, 000, 000.Shelton Engines Inc.transfers title to the engine to Lokin Inc.Lokin Inc.is now the owner of the equipment.
A)captures
B)leases
C)purchases
D)produces

Question

Quizplus · Accepted Answer

Lokin Inc. purchased the equipment from Shelton Engines Inc. for $1,000,000, indicating a sale transaction rather than a lease or production. Therefore, the best choice is C, purchases. A is incorrect as "captures" is a vague term and does not accurately describe the transaction. B is incorrect as leasing involves renting rather than owning the equipment. D is incorrect as it implies that Lokin Inc. produced the engine, which is not the case.