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Kate owns her own bakery and leases her operating equipment, such as ovens and fridges, from EasyBake. The lease amount, which Kate pays back in regular installments, is determined in such a way that the value of the asset, plus an interest charge, is paid back by the end of the term of the lease, which is usually related to the lifespan of the asset. Which type of financial leasing agreement does Kate have with EasyBake? A. Operating-lease agreement B. Lifespan leasing C. Leaseback agreement D. Direct financial leasing Reset Selection Mark for Review What’s This? Question 20 of 35 1 Points Mohammad is the owner of a gourmet ice-cream shop in Durban. While preparing for the busy holiday season, Mohammad notices that his biggest competitor, SoftServe, has gone out of business. They are selling their ice-cream machine at a very good price during their liquidation sale. As Mohammad has put away extra cash, he can capitalise on this opportunity. Which one of the following represents Mohammad’s reason for keeping cash available in the above scenario? A. The transaction motive. B. The precautionary motive. C. The speculative motive. D. The capitalisation motive. Reset Selection Mark for Review What’s This? Question 21 of 35 1 Points Kabelo and Hendrik are joint owners of Fitness Gym. At the beginning of each year, they draw up the budget afresh and it is expected that they have to justify anew their budget requests for the year to each other. Although this approach has led to better prioritisation of their resource allocations, their partnership is taking strain with the justification of their activities and expenses to each other. Which type of budgeting do Kabelo and Hendrik use at Fitness Gym?