[amp_mcq option1=”leases” option2=”preferred stocks” option3=”common stocks” option4=”corporate stocks” correct=”option1″]<\/p>\n
The correct answer is A. leases.<\/p>\n
A lease is a contract between a lessor (the owner of the asset) and a lessee (the user of the asset). The lessee agrees to pay the lessor a series of payments in exchange for the right to use the asset for a specified period of time. Leases are a type of financial security because they represent a claim on the assets of the lessor.<\/p>\n
Preferred stocks are a type of equity security that gives the holder a priority claim on the company’s assets and earnings. Common stocks are a type of equity security that gives the holder a claim on the company’s assets and earnings, but does not have a priority claim over preferred stocks. Corporate stocks are a type of equity security that represents ownership in a corporation.<\/p>\n
In conclusion, the type of financial security in which firms do not borrow money rather lease their assets is classified as leases.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”leases” option2=”preferred stocks” option3=”common stocks” option4=”corporate stocks” correct=”option1″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"class_list":["post-44780","post","type-post","status-publish","format-standard","hentry","category-financial-management","no-featured-image-padding"],"yoast_head":"\n