CLFP – CLASS REVIEW STUDY | NEWEST
ACTUAL EXAM COMPLETE QUESTIONS
AND VERIFIED ANSWERS GRADED A+ |
100% PASS | 2025 UPDATE!
What are some common methods of lessor financing?
- self funded
- broker
- discounting
- debt/equity
- securitization
What is Asset Securitization?
Aggregation of similar types of assets (leases) into a legal structure
- Assets used as collateral to issue bond/note
What are advantages of Brokering?
- requires little/no capital
- easiest
,- no servicing required
What are disadvantages of brokering?
- limited profit
- lacks control
- loss long term relationship to funding source
Who owns equipment in a Discounting scenario?
Lessor
What are advantages of Discounting?
- lower COF
- flexibility
- brand identity
- increased revenue
- retains customer
What are disadvantages of Discounting?
,-significant reps and warranties
- retains some risk (i.e. residual)
- requires working capital
- potentially less upfront profit.
What are advantages of Equity/Debt funding?
- retain long term economic benefit
- control - underwriting, funding etc
What are disadvantages of Equity/Debt funding?
- risk
- limited capital
- large back-office requirements
What are advantages of Securitization?
- low cost of funds
- potential off balance sheet (bk remote company)
- access to capital markets
, What are disadvantages of Securitization?
- requires expertise
- huge cost to conduct
- time consuming
- need uniformity in assets
- complexity in accounting
How are Partnership Tax Liabilities treated?
income or losses of partnership are divided among owners.
Lessor can only pursue principal with respect to which types of entities?
- sole proprietor
- general partner
What is the only entity not taxed on a personal basis?
C Corp
ACTUAL EXAM COMPLETE QUESTIONS
AND VERIFIED ANSWERS GRADED A+ |
100% PASS | 2025 UPDATE!
What are some common methods of lessor financing?
- self funded
- broker
- discounting
- debt/equity
- securitization
What is Asset Securitization?
Aggregation of similar types of assets (leases) into a legal structure
- Assets used as collateral to issue bond/note
What are advantages of Brokering?
- requires little/no capital
- easiest
,- no servicing required
What are disadvantages of brokering?
- limited profit
- lacks control
- loss long term relationship to funding source
Who owns equipment in a Discounting scenario?
Lessor
What are advantages of Discounting?
- lower COF
- flexibility
- brand identity
- increased revenue
- retains customer
What are disadvantages of Discounting?
,-significant reps and warranties
- retains some risk (i.e. residual)
- requires working capital
- potentially less upfront profit.
What are advantages of Equity/Debt funding?
- retain long term economic benefit
- control - underwriting, funding etc
What are disadvantages of Equity/Debt funding?
- risk
- limited capital
- large back-office requirements
What are advantages of Securitization?
- low cost of funds
- potential off balance sheet (bk remote company)
- access to capital markets
, What are disadvantages of Securitization?
- requires expertise
- huge cost to conduct
- time consuming
- need uniformity in assets
- complexity in accounting
How are Partnership Tax Liabilities treated?
income or losses of partnership are divided among owners.
Lessor can only pursue principal with respect to which types of entities?
- sole proprietor
- general partner
What is the only entity not taxed on a personal basis?
C Corp
