A lease in which the lessor acquires the asset with a small down payment, financing the remainder of the purchase price, is best described as a:

Question

Quizplus · Accepted Answer

A leveraged lease involves the lessor putting down a small amount of equity (down payment) and borrowing the remainder of the purchase price of the asset. This structure allows the lessor to leverage their investment by using a significant amount of debt financing.

A Lease in Which the Lessor Acquires the Asset with a Small