Which of the following is the best definition of a financial lease?
A) A longer-term, fully amortized lease under which the lessee is responsible for upkeep. Usually not cancellable with-out penalty.
B) The user of an asset in a leasing agreement. Lessee makes payments to lessor.
C) The owner of an asset in a leasing agreement. Lessor receives payments from the lessee.
D) A leveraged lease is a tax-oriented lease involving three parties: a lessee, a lessor, and a lender.
E) The NPV of the decision to lease an asset instead of buying it.
Correct Answer:
Verified
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Q242: Provide a definition of a leveraged lease.
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Q247: Provide a definition of a lessee.
Q248: Provide a definition of a tax-oriented lease.
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