When one firm sells an asset to another for cash and then leases the asset from its new owner,it is known as a:

Question

Quizplus · Accepted Answer

This scenario describes a sale-leaseback arrangement, where the firm sells an asset to raise cash and then leases it back from the new owner. This can be beneficial for the firm as they can still use the asset without the burden of ownership, and the new owner can benefit from the lease payments and potential appreciation of the asset. Direct lease and leveraged lease involve different arrangements for leasing assets, but do not involve the sale of the asset from one firm to another.

When One Firm Sells an Asset to Another for Cash