A retailer that owns several of its locations and desires capital to expand should consider using a _____.
A)percentage lease
B)sale-leaseback
C)short-term lease with renewal options
D)graduated lease

Question

Quizplus · Accepted Answer

A sale-leaseback arrangement allows the retailer to sell one or more of its owned locations to an investor and then lease the property back from the investor, freeing up capital that can be used for expansion. This option is more feasible than a percentage lease, short-term lease with renewal options, or graduated lease, which do not provide immediate access to capital for expansion.

A Retailer That Owns Several of Its Locations and Desires