One advantage of leasing is that in many cases, the return to the lessor is quite high so the firm in need of the asset might be better off borrowing to purchase it.

Question

Quizplus · Accepted Answer

The statement is incorrect. The advantage of leasing is that the lessee can acquire and use the asset without making a large upfront payment, and the lessor typically bears the risks associated with ownership such as maintenance and obsolescence. However, leasing can be more expensive in the long run compared to purchasing the asset outright.

One Advantage of Leasing Is That in Many Cases, the Return