Which of the Following Is (Are)an Advantage(s)to Leasing Rather Than

question 21

Multiple Choice

Which of the following is (are) an advantage(s) to leasing rather than purchasing?

• A) Leasing effectively allows for the depreciation of land.
• B) A lease does not have a stated interest cost.
• C) A lessee generally cannot make improvements to the leased property.
• D) At the end of the lease, the lessor realizes any salvage value of the leased property.

---

Definitions:

Treasury Stock

Shares that were issued and subsequently reacquired by the issuing company, now held in the company's treasury.

Private Offering

The sale of securities or investment stakes not offered through a public exchange, typically to a small number of chosen investors.

Standby Underwriting

A commitment by an underwriter to purchase any unsubscribed shares in a public offering, ensuring the issuer raises the full intended capital.

Entire Offering

The total number of shares or securities a company makes available for sale in a public offering.