Which of the following is an advantage of leasing from a lessee's perspective?
A) The return to the lessor is quite high.
B) prohibition on leasehold improvements
C) Maximum claim of the lessor in the event of bankruptcy is ten years of lease payments.
D) Maximum claim of the lessor in the event of bankruptcy is three years of lease payments.

Question

Quizplus · Accepted Answer

The advantage of leasing from a lessee's perspective is that the maximum claim of the lessor in the event of bankruptcy is limited. Option D states that the maximum claim of the lessor in the event of bankruptcy is three years of lease payments, which is a better option for the lessee than option C, where the maximum claim is ten years of lease payments. Option A is incorrect because it talks about the return to the lessor, which is not a benefit for the lessee. Option B is incorrect because it talks about a prohibition, which is a limitation, and not an advantage.

Which of the Following Is an Advantage of Leasing from a Lessee's