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Barbara Runs an Italian Restaurant and Is Currently Considering Leasing

Question 72

Multiple Choice

Barbara runs an Italian restaurant and is currently considering leasing or purchasing some updated equipment. What statement is correct?


A) Since the equipment she is buying will become outdated in two years, leasing would be a better option than purchasing.
B) Since the restaurant is new and she is wanting to protect her cash flow, purchasing would be better since purchasing costs less than leasing.
C) If the equipment is leased, the restaurant's lines of credit will be increased.
D) Leasing is always more expensive than purchasing over the term of the lease

Correct Answer:

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