In a sale-and-leaseback arrangement,a firm would sell an asset it already owns to another party and then lease the asset back from that party.

Question

Quizplus · Accepted Answer

In a sale-and-leaseback arrangement, the firm sells an asset it already owns to another party (the buyer/lessor) and then leases the asset back from that party. This is a common method used by firms to generate cash flow from their existing assets while still retaining the use of those assets.

In a Sale-And-Leaseback Arrangement,a Firm Would Sell an Asset It