A lease which is generally not cancellable and covers full economic life of the asset is known as:

Sale and Leaseback

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Operating Lease

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Finance Lease

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Economic Lease

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Solution

The correct option is C Finance Lease
Capital lease is a lease agreement in which the lessor agrees to transfer the ownership rights to the lessee after the completion of the lease period. Capital or finance leases are long term and non cancellable in nature.

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Similar questions

In lease financing, the owner of the assets is called the __________ while the party that uses the assets is known as the ______________.

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