The primary disadvantage of leasing is that:
A) it is difficult to replace leased assets than it is to replace owned assets.
B) the process of negotiating and closing a lease is very complicated.
C) it usually costs more than it would cost to purchase an asset.
D) the responsibility of disposing of obsolete assets lies on the lessee.

Question

Quizplus · Accepted Answer

Leasing generally costs more over time compared to purchasing an asset outright. This is because you are essentially paying rent on the asset instead of buying it, which includes interest and fees. Plus, at the end of the lease term, you don't own the asset and will need to lease or purchase a replacement, which can be costly.

The Primary Disadvantage of Leasing Is That