The Primary Disadvantage of Leasing Is That

question 29

Multiple Choice

The primary disadvantage of leasing is that:

• A)it usually costs more than would purchasing.
• B)assets tend to have more breakdowns.
• C)it requires extensive paperwork than would purchasing.
• D)it generates fewer dollars in revenue sales.

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Definitions:

Equity

Ownership share in a firm.

Fixed-Income

Investments that generate a regular, fixed amount of income, typically through interest or dividends, like bonds and treasury bills.

Net Asset Value

The total value of a fund's assets minus its liabilities, often used to determine the value of a share of investment such as in a mutual fund or ETF.

Year-End Assets

The total value of all assets owned by an entity at the end of a financial year.