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Commerce · Q668

Business Finance

Graduate and Post Graduate · Commerce · question 668

Q668

Which of the following is not true in the context of a leveraged lease?

A.
The asset may be purchased with an appropriate mix of debt and equity
B.
There is involvement of three parties- lessor, lessee and lender
C.
The lease rental is assigned to a bank or financial institution
D.
The creditor will have the recourse to lessor only, and not to the lender
Answer

Answer: Option D

Solution

Answer: Option D
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