When the manufacturer of a product creates a wholly owned subsidiary to lease that product, the subsidiary is called a(n) :

A) Independent lessee.
B) Independent lessor.
C) Captive lessee.
D) Captive finance company.
E) Captive direct lessor.

Question

Nadou Lawson · Accepted Answer

Final Answer : D, Explanation :  A captive finance company is a subsidiary established by a parent company to provide financing to customers buying the parent company's product. This arrangement helps facilitate sales and control financing aspects directly related to the company's products.

When the manufacturer of a product creates a wholly owned subsidiary to lease that product, the subsidiary is called a(n) :

A) Independent lessee.
B) Independent lessor.
C) Captive lessee.
D) Captive finance company.
E) Captive direct lessor.

Definitions

Learning Objectives

Learning Objectives

Related questions

When the manufacturer of a product creates a wholly owned subsidiary to lease that product, the subsidiary is called a(n) :A) Independent lessee.B) Independent lessor.C) Captive lessee.D) Captive finance company.E) Captive direct lessor.

Definitions

Learning Objectives

Learning Objectives

Related questions

When the manufacturer of a product creates a wholly owned subsidiary to lease that product, the subsidiary is called a(n) :

A) Independent lessee.
B) Independent lessor.
C) Captive lessee.
D) Captive finance company.
E) Captive direct lessor.