For many new businesses, the most important reason to lease rather than buy a facility is:
A)avoidance of a large cash outlay.
B)freedom in modifying the building.
C)avoidance of interest payments.
D)avoidance of liability lawsuits.

Question

Quizplus · Accepted Answer

Leasing a facility allows a new business to avoid a large cash outlay, as they do not have to purchase the building outright. This allows the business to conserve their cash for other important expenses such as inventory, equipment, and marketing. Leasing also often provides more flexibility in adjusting to changing business needs and growth.

For Many New Businesses, the Most Important Reason to Lease