Which of the following statements is TRUE for a corporation with a high credit rating considering owning versus leasing corporate real estate?

Question

Quizplus · Accepted Answer

A corporation with a high credit rating may have access to more favorable financing options, including issuing corporate debt at a lower interest rate. Therefore, owning the property through a mortgage may be a viable option for the company. However, leasing from someone with a lower credit rating is not necessarily a better option as the creditworthiness of the lessor can also affect the terms of the lease. The company's credit rating does play a role in the own versus lease decision as it affects the cost and availability of financing options.

Which of the Following Statements Is TRUE for a Corporation