The lessee can protect himself against obsolescence by entering into a capital lease agreement with the lessor.

Question

Quizplus · Accepted Answer

A capital lease is a long-term lease agreement, and it does not necessarily protect the lessee from obsolescence. Instead, it might actually increase the risk of using outdated equipment, as the lessee is typically responsible for the asset over a significant portion of its useful life.

The Lessee Can Protect Himself Against Obsolescence by Entering into a Capital