The major advantage of leasing is that ________.
A) it enables a company to have access to average or above average facilities and equipment
B) it enables a company to acquire the use of assets with little or no down payment
C) it is cheaper in the long run than purchasing
D) a lease agreement is easier to negotiate than a purchase agreement
E) it is easier to obtain credit on a lease than a purchase

Question

Quizplus · Accepted Answer

Leasing allows companies to acquire the use of assets with little or no down payment, which can be a major advantage over purchasing, especially for companies with limited cash on hand. Leasing also often involves lower monthly payments than buying, which can free up cash flow for other areas of the business.

The Major Advantage of Leasing Is That ________