Which of the Following Is Not a Reason for Leasing

question 97

Multiple Choice

Which of the following is not a reason for leasing?

• A)Leasing provides the lessor with insurance against obsolescence
• B)Leasing can reduce taxable income
• C)Leasing can be a source of off-balance-sheet financing, provided certain conditions are met
• D)A company can obtain financing easier by the leasing company retaining title to the asset

---

Definitions:

Focused Differentiation Strategy

A business approach that targets a specific segment of the market by offering unique features that satisfy the particular needs of that segment.

Unique Product

A good or service that is distinct in the marketplace due to its unique features, benefits, or technology, setting it apart from competitors.

Special Market Segment

A specific portion of the market identified by unique characteristics, differentiating it from the broader market.

Differentiation Strategy

A business approach where companies aim to develop and market unique products or services to stand out from competitors and attract a specific segment of customers.