Use the fact situation above to answer the question. Using the fact situation above,assume that just after B,the dealer,enters into the lease agreement with A,he assigns the lease to a financing company,which gives notice to A to make all payments to the company until the price has been paid in full,at which time the company will transfer the car to A.In this case,the lease is best described as
A)a security lease.
B)a finance lease.
C)an operating lease.
D)a hire-purchase agreement.
E)an agreement of purchase and sale.

Question

Quizplus · Accepted Answer

This lease is best described as a finance lease because the financing company has assigned the lease from the dealer and is requiring A to make payments until the car is paid in full, at which point they will transfer ownership. This is characteristic of a finance lease, where the lessee is essentially financing the purchase of the asset and ultimately becomes the owner.

Use the Fact Situation Above to Answer the Question