The sale and leaseback is advantageous to the lessee because the lessee _____.

Question

Quizplus · Accepted Answer

In a sale and leaseback transaction, the lessee sells their asset to the lessor and then leases it back. This allows the lessee to receive cash from the sale of the asset while still being able to use it through the lease. Therefore, option B is the correct answer. Option A is incorrect as the lessee can still use the asset through the lease. Option C is also incorrect as the lessor retains ownership of the property at the end of the lease. Option D is false as the lessee is responsible for paying the rent as well as taxes and insurance during the lease term.

The Sale and Leaseback Is Advantageous to the Lessee Because