An advantage of leasing is that the lessor does not own the asset and can cancel:
A) only financial leases.
B) only operating leases.
C) only capital leases.
D) any kind of leases anytime.
E) None of these.

Question

Quizplus · Accepted Answer

The advantage of leasing is that the lessor does not own the asset and can cancel operating leases if necessary. Financial leases and capital leases are long-term leases where the lessee has ownership-like rights and obligations over the leased asset, making it difficult for the lessor to cancel the agreement. Therefore, option A and C are incorrect. Option D is also incorrect as not all leases can be cancelled anytime. Option E is not applicable as the correct choice is B.

An Advantage of Leasing Is That the Lessor Does Not