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The Following Are Advantages to Lessors Over Secured Lenders If

Question 11

Multiple Choice

The following are advantages to lessors over secured lenders if a firm is under bankruptcy except:


A) the bankruptcy court decides that the leased asset is essential to the lessee's business and affirm the lease thus paving the way for continued lease payments.
B) the lease is rejected and the lessor can recover the leased asset.
C) a lessee in financial distress may be able to renegotiate the lease thus forcing the lessor to accept lower lease payments.
D) none of the above are advantages to the lessor.

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