Which of the Following Is Not an Advantage of Leasing

question 59

Multiple Choice

Which of the following is not an advantage of leasing one's business premises?

• A)The flexibility of moving to different premises at the end of the lease term
• B)Lease payments may be a tax deductible expense
• C)Rent money contributes to payment for an asset
• D)Initial costs are much lower than when buying premises

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Definitions:

Dependency

A situation or condition where one entity relies on another for support, resources, or survival.

Experimentation

The process of conducting trials to explore and evaluate new ideas, procedures, or products, often used in research and development.

Closed Systems Theory

An approach in organizational theory that views organizations as systems that are self-contained and do not interact with the outside environment.

Funding

The act of providing financial resources, typically in the form of money, or other values such as effort or time, to finance a need, program, and project, usually by an organization or government.