Which of the Following Would Be Considered an Advantage of Leasing

question 70

Multiple Choice

Which of the following would be considered an advantage of leasing equipment rather than owning it?

• A) Lease revenue tends to fluctuate greatly.
• B) Leased equipment rarely breaks down.
• C) Leasing helps guarantee better maintenance on overseas equipment.
• D) Leasing keeps companies from using experimental equipment.
• E) Leasing is less risky than outright sale of equipment.

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Definitions:

Normal Retail Price

The standard selling price of a good or service in the retail market before any discounts or promotions are applied.

Computers

Electronic devices that execute specific tasks based on programmed instructions, capable of processing, storing, and retrieving data.

Break-even Price

The price level at which revenues equal costs, resulting in neither profit nor loss.

Overhead Expenses

Costs not directly tied to the production of goods or services, such as rent, utilities, and administrative salaries.