Consider the following two statements: (i) The less sensitive the value of an asset is to usage and maintenance decisions, the less likely it is
That the asset will be purchased instead of leased.
(ii) Leasing may be a way of circumventing laws against too high a price.
A)(i) is correct, (ii) is incorrect.
B)(ii) is correct, (i) is incorrect.
C)(i) and (ii) are both correct.
D)(i) and (ii) are both incorrect.
E)The leasing decision is not affected by the price of an asset.

Question

Quizplus · Accepted Answer

Statement (i) is correct as assets that are less sensitive to usage and maintenance decisions may not need to be owned by the company and can be leased instead. Statement (ii) is incorrect as leasing is a legal way of obtaining assets without purchasing them and circumventing the laws against high prices is illegal.

Consider the Following Two Statements: (I) the Less Sensitive the Value