For many new firms,the most important reason to lease rather than buy a facility is
A)avoidance of a large cash outlay.
B)freedom in modifying the building.
C)avoidance of interest payments.
D)avoidance of liability lawsuits.

Question

Quizplus · Accepted Answer

Leasing allows new firms to avoid a large cash outlay and preserve their capital for other important expenses such as inventory, marketing, and hiring employees. By leasing, firms are able to conserve resources and take advantage of lower up-front costs. Additionally, leasing provides more flexibility to change locations if necessary without having to worry about the costs and time involved in selling a property.

For Many New Firms,the Most Important Reason to Lease Rather