An important advantage an entrepreneur gains by leasing rather than buying a facility is
A)receipt of an investment tax credit.
B)a decrease in investment risk.
C)a decrease in the amount of promotion required.
D)a customized layout.

Question

Quizplus · Accepted Answer

Leasing a facility allows for less investment risk as there is no large initial investment required for purchasing a property. This provides more flexibility for entrepreneurs to allocate their resources towards other important areas such as business development and marketing. The other options, such as investment tax credit, customized layout, and decreased promotion requirements, may not always be guaranteed benefits of leasing a facility.

An Important Advantage an Entrepreneur Gains by Leasing Rather Than