In purchasing an existing business,Alice has decided to lease the equipments and fixtures from the original owner rather than purchasing it outright to save money initially.This is an example of
A) Holdback money
B) Thinning the assets
C) Escrow settlement
D) Goodwill

Question

Quizplus · Accepted Answer

Thinning the assets refers to reducing the amount of capital tied up in assets, such as leasing equipment instead of buying it, to save money initially.

In Purchasing an Existing Business,Alice Has Decided to Lease the Equipments