wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

From the point of view of the lessee, a lease is a:

A
Working capital decision
No worries! We‘ve got your back. Try BYJU‘S free classes today!
B
Financing decision
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
C
Buy or make decision
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
Investment decision
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution

The correct option is B Financing decision
Lease is a financing decision because investment is something from where you are will get back some returns in future. In leasing there is no return rather lessee is paying lease rentals per month. Moreover, lessee gets immediate access to the assets. It has tax benefits.

flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Sources of Finance II
BUSINESS STUDIES
Watch in App
Join BYJU'S Learning Program
CrossIcon