In a sale and lease-back, the firm sells an asset that it already owns and leases it back from the buyer.

Name: In a sale and lease-back, the firm sells an asset that it already owns and leases it back from the buyer.
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Question

Quizplus · Accepted Answer

This statement correctly defines the sale and lease-back transaction, where a company sells an asset it owns to raise capital and then leases it back from the purchaser, allowing the company to continue using the asset while also gaining access to cash.

In a Sale and Lease-Back, the Firm Sells an Asset