Type of financial security in which firms do not borrow money rather lease their assets is classified as____________________?
Correct answer: A. Leases
- A. Leases
- B. Preferred stocks
- C. Common stocks
- D. Corporate stocks
Explanation
A lease gives a firm the right to use an asset without purchasing it outright or borrowing specifically to buy it. Preferred and common stocks represent ownership interests rather than asset-use agreements.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
Practise Business Finance
975 free Business Finance MCQs from Management Sciences, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Management Sciences questions like this
Management Sciences is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Business Finance questions
Ability to trade at net price very quickly is classified as___________?
Price of stock that companies observe in financial markets is called____________?
Collection of money from investors and spending money in other investment activities is classified as__________________?
Hewlett-Packard and Microsoft are examples of__________?
A price for equity is called______________?
Document in a corporation which consists of amount of stock, name and addresses of directors is classified as_____________?