Rex Associates has a poor credit rating and is finding it difficult to obtain loans.In order to fund a new project,the company decides to let out one of its buildings to a bank.The company obtains funds in return from the bank.This is an example of ________.
A) unsecured lending
B) factoring
C) leasing
D) long-term lending
E) short-term lending

Question

Quizplus · Accepted Answer

A)Leasing may be a good alternative for a company that has difficulty obtaining a loan because of a poor credit rating. Lease is an agreement to use an asset in exchange for regular payment. It is similar to renting.
B)Leasing may be a good alternative for a company that has difficulty obtaining a loan because of a poor credit rating. Lease is an agreement to use an asset in exchange for regular payment. It is similar to renting.
C)Leasing may be a good alternative for a company that has difficulty obtaining a loan because of a poor credit rating. Lease is an agreement to use an asset in exchange for regular payment. It is similar to renting.
D)Leasing may be a good alternative for a company that has difficulty obtaining a loan because of a poor credit rating. Lease is an agreement to use an asset in exchange for regular payment. It is similar to renting.
E)Leasing may be a good alternative for a company that has difficulty obtaining a loan because of a poor credit rating. Lease is an agreement to use an asset in exchange for regular payment. It is similar to renting.

Rex Associates Has a Poor Credit Rating and Is Finding