In an operating lease, the lessor bears more ownership risk than a lessor in a financial lease would.

Question

Quizplus · Accepted Answer

In an operating lease, the lessor retains ownership of the asset and is responsible for any maintenance or repair costs, which means they bear more ownership risk than a lessor in a financial lease. In a financial lease, the lessee assumes more ownership risk since they have the option to purchase the asset at the end of the lease term.

In an Operating Lease, the Lessor Bears More Ownership Risk