Leasing, and its respective effects on the firm, is very similar to ______ financing.
A)equity
B)debt
C)guaranteed
D)trade

Question

Quizplus · Accepted Answer

Leasing is a form of debt financing, as the company essentially borrows the asset for a set period of time and makes regular payments for the use of the asset. This differs from equity financing, where the company sells ownership in the company to investors, and from guaranteed financing, where a third party guarantees the loan. Trade financing refers to financing for importing or exporting goods and is not directly related to leasing.

Leasing, and Its Respective Effects on the Firm, Is Very