Question

Which of the following is a merit of lease financing?

• A. It enables the lessee to acquire the asset with a lower investment.
• B. The risk of obsolescence is borne by the lesser.
• C. The lease agreement does not affect the debt raising capacity of an enterprise
• D. All of the above

Answer 1

Answer: (D)

All of the above

Few merits of lease financing are: It enables the lessee to acquire the assets with low investment, the risk of obsolescence is borne by the lessor, the lease agreement does not affect the debt raising capacity of an enterprise.