The Primary Disadvantage of Leasing Is That

question 42

Multiple Choice

The primary disadvantage of leasing is that:

• A) it is difficult to replace leased assets than it is to replace owned assets.
• B) the process of negotiating and closing a lease is very complicated.
• C) it usually costs more than it would cost to purchase an asset.
• D) the responsibility of disposing of obsolete assets lies on the lessee.

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Definitions:

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a given period.

Supply

A schedule of quantities that people will sell at different prices.

Net Worth's

The total assets minus total outside liabilities of an individual or a company, indicating financial health or position.

Billion

A numerical value representing one thousand million (1,000,000,000) in the American short scale.