Describe the Two Types of Capital Leases That Exist from the Lessor's

question 35

Essay

Describe the two types of capital leases that exist from the lessor's point of view.

---

Definitions:

Opportunity Cost

Bypassing potential gains from a range of alternatives by finalizing one choice.

Production Possibility Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs (resources), representing the trade-offs of producing one good over another.

Trade-Offs

Situations where having more of one thing invariably leads to having less of another due to limited resources or constraints.

Opportunity Costs

The value of the next best alternative that is foregone as a result of making a decision.