MCQOPTIONS
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MCQOPTIONS
This section includes 2 Mcqs, each offering curated multiple-choice questions to sharpen your Business Finance knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
A 'sale and lease back' arrangement is more suitable for a lessee having |
| A. | liquidity crisis |
| B. | surplus fund |
| C. | high profit |
| D. | no-profit no-loss |
| Answer» B. surplus fund | |
| 2. |
Given below are two statements : One is labelled as Assertion (A) and the other is labelled as Reason (R). Assertion (A) : Firms opt for buying an asset if the equivalent annual cost of ownership and operation is less than the best lease rate it can get. Reason (R) : Operating leases are attractive to equipment users if the lease payment is less than the user's equivalent annual cost of buying the equipment. In the light of the above statements. choose the most appropriate answer from the options given below : |
| A. | Both (A) and (R) are correct and (R) is the correct explanation of (A) |
| B. | Both (A) and (R) are correct but (R) is NOT the correct explanation of (A) |
| C. | (A) is correct but (R) is not correct |
| D. | (A) is not correct but (R) is correct |
| Answer» C. (A) is correct but (R) is not correct | |