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In the Context of Financing Tools Available to New Businesses

Question 41

Multiple Choice

In the context of financing tools available to new businesses, identify a major disadvantage to asset leasing.


A) Any assets that are leased must be paid for upfront, making the proposition of leasing nearly as expensive as purchasing new equipment outright.
B) A new business might spend more money on leasing equipment over time than if it had bought the equipment outright.
C) Equipment leasing agreements make it difficult for a small business to upgrade to newer machines when their leased machines become obsolete.
D) Major asset leasing companies are unwilling to risk leasing equipment to new businesses.

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