Which one of the following can be associated with the cheap financing motivation of leasing?
A)Interest rates are fixed for the period of the lease.
B)No maintenance costs.
C)Reduce risk of holding the asset.
D)All of the above

Question

Quizplus · Accepted Answer

All of the given options can be associated with the cheap financing motivation of leasing.

A) Interest rates are fixed for the period of the lease - This is beneficial for lessees as they know exactly how much they will have to pay each month, making it easier to budget.

B) No maintenance costs - In some cases, lessors may include maintenance costs in the lease agreement, which can save the lessee money in the long run.

C) Reduce risk of holding the asset - Leasing allows the lessee to use the asset without having to bear the risks associated with owning it, such as depreciation and obsolescence.

Which One of the Following Can Be Associated with the Cheap