A leveraged lease is more risky from the lessee's standpoint than an unleveraged lease.

Name: A leveraged lease is more risky from the lessee's standpoint than an unleveraged lease.
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In a leveraged lease, the lessor uses borrowed funds to acquire the asset that is leased out, which generally does not increase the financial risk for the lessee. The lessee's obligations typically remain the same regardless of the lease being leveraged or unleveraged.

A Leveraged Lease Is More Risky from the Lessee's Standpoint