The primary disadvantage of leasing is that:
A)it usually costs more than would purchasing.
B)assets tend to have more breakdowns.
C)it requires extensive paperwork than would purchasing.
D)it generates fewer dollars in revenue sales.

Question

Quizplus · Accepted Answer

Leasing typically involves paying for the use of an asset over a period of time, which can add up to a higher total cost than if the asset was purchased outright. Additionally, at the end of the lease term, the lessee does not own the asset and may need to enter into another lease agreement or purchase the asset at its residual value in order to continue using it.

The Primary Disadvantage of Leasing Is That