A lessor and lessee have the same exposure to financial risk.

Name: A lessor and lessee have the same exposure to financial risk.
Brand: Quizplus
Rating: 4.8 (32 reviews)

Question

Quizplus · Accepted Answer

A lessor bears the risk of ownership, such as unpredictable market values, repairs, and maintenance costs, while a lessee bears the risk of usage, such as unexpected changes in demand or changes in interest rates. Therefore, their financial risks are not the same.

A Lessor and Lessee Have the Same Exposure to Financial