Most Business Owners Should Avoid Leasing as a Cash Management

question 133

True/False

Most business owners should avoid leasing as a cash management strategy because it requires large capital outlays as down payments, and total lease payments typically are greater than those for conventional loans.

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Definitions:

Price Ceiling

A government-imposed limit on how high a price is charged for a product, aimed at protecting consumers from certain market conditions.

Fried Twinkies

A popular fair food in which Twinkies are battered and deep-fried, often served with powdered sugar or sauce.

Popular Anger

Widespread dissatisfaction or frustration among the general public, often directed towards social, economic, or political issues.

Government Price Ceiling

A legally imposed maximum price on goods or services to prevent prices from rising too high, often leading to shortages.