Simple documentation makes it easier to finance assets, is a ________ of lease financing.

Function

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Role

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Merit

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Limitation

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Solution

The correct option is D Merit
Lease financing in other words is renting of an asset for some specific period. The lessee pays a fixed periodic amount called lease rental to the lessor for the use of the asset. Therefore simple documentation makes it easier to finance assets and is a merit of lease financing.

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Similar questions

Funds required for purchasing current assets is an example of

(a) Fixed capital requirement

(b) Ploughing back of profits

(d) Lease financing

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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