In a___________ , the lessor acts as an equity participant supplying part of the necessary capital while a lender supplies the remaining balance.
A) direct lease
B) sale-leaseback
C) leveraged lease
D) capital lease

Question

Quizplus · Accepted Answer

In a leveraged lease, the lessor (financing party) provides a portion of the required capital, while a lender supplies the remaining balance. This type of lease is beneficial for lessees who require additional financing to acquire or develop the asset. In a direct lease, the lessor provides all of the financing. In a sale-leaseback arrangement, the lessor sells the asset to a buyer and then immediately leases it back. In a capital lease, the lessee is responsible for most of the risks and rewards associated with owning the asset during the lease term.

In A___________ , the Lessor Acts as an Equity Participant