All of the following have been cited as advantages of leasing by small businesses except:
A)less cash required up front
B)fewer restrictive covenants from lessor than lenders
C)lower effective interest costs relative to borrowing
D)quicker approvals from lessors than from lenders

Question

Quizplus · Accepted Answer

All of the options listed except for C have been cited as advantages of leasing by small businesses. Option C does not provide a clear advantage of leasing over other financing options as it depends on the specific terms and conditions of the lease agreement and the interest rates on borrowing. In some cases, leasing may result in lower effective interest costs, while in others, borrowing may be a more cost-effective option.

All of the Following Have Been Cited as Advantages of Leasing