A Primary Difference Between Leveraged Leases and Other Financial Leases

Multiple Choice

A primary difference between leveraged leases and other financial leases is that ____.

A) leveraged leases must be capitalized and shown on the lessee's balance sheet
B) the lessor in a leveraged lease is invariably the manufacturer of the leased asset
C) leveraged leases involve the use of nonrecourse debt
D) unleveraged leases are usually tax-motivated