Which of the Following Are Advantages of Leasing Equipment

question 13

Multiple Choice

Which of the following are advantages of leasing equipment?

• A)Flexibility with equipment needs and payment schedules
• B)Smaller capital requirements
• C)Leasing company offers maintenance service for equipment
• D)Leasing offers a way to beat the obsolescence problem
• E)The absence of depreciation

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Definitions:

Vertical Acquisition

A business strategy where a company acquires another company that operates in the production process of the same industry but at a different level, such as a supplier or distributor.

Building Supply Store

A retail establishment that sells materials and components used in the construction and maintenance of buildings and structures.

Lumber Mill

A facility where logs are cut into lumber through various sawing processes, often also involving the finishing and treatment of wood.

Standstill Agreement

A contract between a company and its creditors where the creditors agree not to increase the level of their claims, pursue further action, or demand payment for a certain period of time, usually during restructuring.