QUESTION 23
Which of the following is not a reason why some companies lease rather than buy?

A. Leasing may allow you to borrow with little or no down payment.
B. Leasing may offer protection against risk of declining asset values.
C. Leasing offers flexibility and lower costs when disposing of an asset.
D. Leasing transfers the title to the lessee (user) at the beginning of the lease.



Answer :

Final answer:

Leasing offers flexibility and lower costs when disposing of an asset is the option that is not a reason for some companies to lease rather than buy.


Explanation:

Leasing offers flexibility and lower costs when disposing of an asset is the option that is not a reason why some companies lease rather than buy. When companies choose to lease, they can avoid the responsibility of handling asset disposal costs and complexities.


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