Leasing has become the number one method of external financing by U.S. companies. Reasons include each of the following except:

Question

3 years ago

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Leasing has become the number one method of external financing by U.S. companies. Reasons include each of the following except:

Multiple Choice Tax advantages. Extended use of the asset. Protection against obsolescence. Lower upfront cash needed to use an asset.

Business

1 answer:

mihalych1998 [28] · Answer 1 · 2022-05-17T18:31:55+03:00

Answer:

Extended use of the asset.

Explanation:

The major advantages of leasing include operational, financial and tax incentives. When you lease an asset, the entire amount is taken as an expense, which might benefit a company if you compare it to the normal depreciation of a building (which lasts 39 years). Leasing also lowers the amount of foreign investment and it is easier to carry out than purchasing assets.