A shorter-term lease under which the lessor is responsible for insurance, taxes, and upkeep, while the lessee can cancel the lease on short notice, is called a(n) ______________.

Question

Quizplus · Accepted Answer

The described lease is an operating lease. This type of lease typically has a shorter-term and allows the lessee to cancel the lease with short notice. The lessor is responsible for ownership expenses such as insurance, taxes, and maintenance. This type of lease is commonly used for equipment or vehicles that have a shorter lifespan.

A Shorter-Term Lease Under Which the Lessor Is Responsible for Insurance