A ___________is normally initiated by a firm that needs funds for operations. An asset previously owned by a lessee is sold to the lessor.
A) leveraged lease
B) capital lease
C) sale-leaseback
D) direct lease

Question

Quizplus · Accepted Answer

This scenario describes a sale-leaseback transaction in which a firm sells an asset to a lessor and then leases it back from the lessor. This can provide the firm with cash to fund operations while still allowing them to use the asset for business needs. The lessor assumes ownership of the asset and the risk associated with it but earns income from leasing it back to the firm.

A ___________Is Normally Initiated by a Firm That Needs Funds