A ________ is normally initiated by a firm that needs funds for operations. An asset previously owned by a lessee is sold to the lessor.

Question

Quizplus · Accepted Answer

A sale-leaseback is a transaction in which a company sells its owned asset to a lessor and then immediately leases it back for a set period of time. This allows the company to generate funds while still retaining use of the asset. It is a form of leasing that provides the benefits of ownership without the burden of ownership.

A ________ Is Normally Initiated by a Firm That Needs