Which of the following statements is FALSE?
A)In a direct lease,the lessor is the manufacturer (or a primary dealer)of the asset.
B)The lease specifies any cancellation provisions,the options for renewal and purchase,and the obligations for maintenance and related servicing costs.
C)If a firm already owns an asset it would prefer to lease,it can arrange a sale and leaseback transaction.
D)With many leases,the lessor provides the initial capital necessary to purchase the asset,and then receives and retains the lease payments.

Question

Quizplus · Accepted Answer

In a direct lease, the lessor is typically not the manufacturer or a primary dealer of the asset. Instead, the lessor is usually a financial institution or leasing company.

Which of the Following Statements Is FALSE