All of the following statements about residual value guarantees are correct except residual value guarantees
A)protect lessors against lessees who abuse leased assets.
B)protect lessees against lessors who abuse leased assets.
C)protects lessors against technological changes.
D)protects lessors against marketplace changes.

Question

Quizplus · Accepted Answer

Residual value guarantees do not protect lessees against lessors who abuse leased assets. They are designed to protect lessors against potential losses due to changes in technology or market conditions that can lower the value of the leased asset at the end of the lease term.

All of the Following Statements About Residual Value Guarantees Are