Use the fact situation in Q3 to answer the related question that follows. Using the fact situation above,assume that just after B,the dealer,enters into the lease agreement with A,he assigns the lease to a financing company,which gives notice to A to make all payments to the company until the price has been paid in full,at which time the company will transfer the car to A.In this case,the lease is best described as
A)a security lease.
B)a finance lease.
C)an operating lease.
D)a hire-purchase agreement.
E)an agreement of purchase and sale.

Question

Quizplus · Accepted Answer

The lease in this scenario is best described as a finance lease because the financing company has taken the place of the dealer as the lessor and is now receiving payments from A with the intention of ultimately transferring ownership of the car to A once the price has been paid in full.

Use the Fact Situation in Q3 to Answer the Related