Which of the Following Is a Disadvantage of Leasing

question 93

Multiple Choice

Which of the following is a disadvantage of leasing?

• A) It requires a considerably high initial cash outlay than building or buying.
• B) It is expensive than building or buying a property that are of the same value.
• C) Lease expenses are not deductible business expenses.
• D) Renovation options are limited in a leased property.

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Definitions:

Operating Expense

Costs associated with the day-to-day operation of a business, including rent, utilities, and salaries.

Physical Count

The process of counting the actual inventory on hand to ensure accuracy in inventory records.

Gross Margin

Gross Margin is a company's revenue from sales minus its cost of goods sold, indicating the efficiency of its production process and pricing strategy.

Operating Expenses

Costs associated with running the day-to-day operations of a business, excluding the cost of goods sold.