A financial lease in which the lessor borrows a substantial fraction of the cost of the leased asset on a nonrecourse basis is called a(n) ___________.

Question

Quizplus · Accepted Answer

A leveraged lease involves the lessor borrowing a significant portion of the asset's cost on a nonrecourse basis, where the lender has no claim against the lessor beyond the collateral (the leased asset itself).

A Financial Lease in Which the Lessor Borrows a Substantial