One incentive for entering into sale-and-leaseback arrangements is:
A)lessee may be able to reduce finance expense through the refinancing aspects of the sale-leaseback.
B)tax implications are favourable for the lessor.
C)lessee wants to increase return on investment.
D)lessor has an abundance of cash.
E)improvement in cash flow for the lessor.

Question

Quizplus · Accepted Answer

Sale-and-leaseback arrangements can allow the lessee to reduce finance expenses by converting ownership into a lease, which can improve liquidity and potentially offer better financing terms.

One Incentive for Entering into Sale-And-Leaseback Arrangements Is