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CTP · Question #734

(Topic 8) What is a KEY reason that both a lessee and a lessor would enter into a lease financing agreement?

The correct answer is C. It provides tax benefits. See the full explanation below for the reasoning.

Question

  • (Topic 8)

What is a KEY reason that both a lessee and a lessor would enter into a lease financing agreement?

Options

  • AIt substitutes debt.
  • BIt reduces technological obsolescence.
  • CIt provides tax benefits.
  • DIt eliminates maintenance of assets.

How the community answered

(22 responses)
  • A
    9% (2)
  • B
    5% (1)
  • C
    77% (17)
  • D
    9% (2)

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