For many small business owners, 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 small business owners to avoid large cash outlays upfront, which can be helpful in managing cash flow and preserving capital for other business expenses. While there may be other benefits to leasing, such as the ability to modify the building, avoid interest payments, or limit liability lawsuits, the most important reason for many small business owners is likely the financial flexibility that leasing provides.

For Many Small Business Owners, the Most Important Reason to Lease