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A business requires new manufacturing equipment - HSC - SSCE Business Studies - Question 4 - 2019 - Paper 1
Question 4
A business requires new manufacturing equipment. Which of the following would provide leasing for this equipment? A. Unit trusts B. Property trusts C. Finance compa... show full transcript
Worked Solution & Example Answer:A business requires new manufacturing equipment - HSC - SSCE Business Studies - Question 4 - 2019 - Paper 1
Step 1
Which of the following would provide leasing for this equipment?
Answer
To determine which of the options provides leasing for new manufacturing equipment, we can analyze each choice:
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Unit trusts: These are investment vehicles that pool money from various investors to purchase assets. They typically do not provide leasing services.
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Property trusts: Similar to unit trusts, these focus on real estate investments and do not engage in leasing manufacturing equipment.
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Finance companies: These are institutions that provide loans and leasing options. They are likely to provide leasing for manufacturing equipment, making this the most suitable choice.
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Superannuation funds: Primarily retirement savings vehicles, these funds do not usually directly lease equipment.
Based on this analysis, the correct answer is C. Finance companies.