Which of the Following Is NOT an Advantage of Leasing

question 7

Multiple Choice

Which of the following is NOT an advantage of leasing from the lessor's perspective (compared with offering a straight loan) ?

• A) Leasing has a relatively low default risk.
• B) Administration costs may be lower for a lease than for a straight loan.
• C) The return to the lessor may be higher than for a straight loan.
• D) The lessor may use the funds for other investment opportunities.

---

Definitions:

Online Payments

Electronic transactions where money is transferred via the internet as payment for goods or services purchased online.

Decentralized

A system or network arranged in a way where control or decision-making is distributed rather than being centralized in a single authority.

Digital Currency

A form of currency that is available only in digital or electronic form, not in physical form like paper money or coins.

Electronic Mall

A collection of individual shops under one Internet address; also known as a cybermall or an e-mall.