All but one of the following are reasons for leasing:
A)companies with a weak credit rating can obtain financing because the lessor retains title to the asset.
B)payments on a lease are variable, and therefore removes an additional element of uncertainty.
C)the terms offered under a lease may be more attractive than those that a customer could get under a comparable loan.
D)leases provide the lessee with flexibility and insurance against obsolescence.

Question

Quizplus · Accepted Answer

The reason given in option B is not a benefit of leasing, but rather a disadvantage as it introduces additional uncertainty. A, C, and D are all valid reasons for leasing.

All but One of the Following Are Reasons for Leasing