Leasing is an effective way to reduce long-term capital requirements for a small business.

Question

Quizplus · Accepted Answer

Leasing allows a small business to acquire the necessary equipment or assets without a large initial investment, thereby reducing the long-term capital requirements. Additionally, leasing provides flexibility in upgrading equipment and conserves cash flow for other business expenses. Therefore, it is an effective way to reduce long-term capital requirements.

Leasing Is an Effective Way to Reduce Long-Term Capital Requirements