Disadvantages of leasing from the lessee's perspective include all of the following EXCEPT
A) the return to the lessor is quite high.
B) prohibition on leasehold improvements.
C) under a financial lease, an asset may subsequently become obsolete.
D) the maximum claim of the lessor in the event of bankruptcy is three years of lease payments.

Question

Quizplus · Accepted Answer

The maximum claim of the lessor in the event of bankruptcy being limited to three years of lease payments is actually an advantage for the lessee, as it limits their financial liability.

Disadvantages of Leasing from the Lessee's Perspective Include All of the Following