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Aleksandr-060686 [28]
3 years ago
13

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]3 years ago
6 0

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.

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