A type of lease in which the lessor acquires or purchases the asset in order to lease to a given lessee is known as ________.
A) a mortgage
B) a direct lease
C) a sale-leaseback arrangement
D) a leveraged lease

Question

Quizplus · Accepted Answer

A direct lease involves the lessor purchasing an asset specifically to lease it to the lessee, unlike other types of leases where the lessor might already own the asset or where the lease arrangement involves financial structuring such as in leveraged leases or sale-leaseback arrangements.

A Type of Lease in Which the Lessor Acquires or Purchases