Which of the following is a reason why some companies lease rather than buy?

Question

Quizplus · Accepted Answer

A) Leasing may allow you to borrow with little or no down payment. This can be attractive for companies with limited capital or those looking to conserve cash.

B) Leasing can improve the balance sheet by reducing long-term debt. Since leases are typically considered operating expenses rather than debt, leasing can improve a company's debt-to-equity ratio and overall financial ratios.

C) Leasing can lower income taxes. Lease payments are typically deductible as a business expense, which can reduce a company's taxable income and lower their overall tax burden.

Which of the Following Is a Reason Why Some Companies