The right of residual use of a specific asset by the owner often argues for:
A) buying in the open market.
B) long-term contracts.
C) internal ownership.
D) risk-sharing purchasing arrangements.

Question

Quizplus · Accepted Answer

Internal ownership allows the owner to exercise control over the asset and retain the right of residual use, which is not possible in buying in the open market or long-term contracts. Risk-sharing purchasing arrangements may result in a loss of control over the asset, and hence, the right of residual use may not be exercised.

The Right of Residual Use of a Specific Asset by the Owner