If the future market value of the asset is diﬃcult to predict, then this scenario makes the asset a
likely candidate for leasing.

Question

Quizplus · Accepted Answer

If the future market value of an asset is uncertain, then leasing can be a good option since it shifts the risk of the asset's value to the lessor. This is because the lessor retains ownership of the asset and bears the risk of any decrease in value, while the lessee only pays for the use of the asset during the lease term.

If the Future Market Value of the Asset Is Diﬃcult