A tax-oriented lease effectively allows the lessee to obtain a financing at less cost than by bank borrowing.

Name: A tax-oriented lease effectively allows the lessee to obtain a financing at less cost than by bank borrowing.
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Question

Quizplus · Accepted Answer

A tax-oriented lease provides tax benefits to the lessor, which enable them to offer a lower interest rate to the lessee, making it a cost-effective financing option compared to bank borrowing. Therefore, the statement is true.

A Tax-Oriented Lease Effectively Allows the Lessee to Obtain a Financing