Question

Sonor Designs is a small business that makes greeting cards. Because of the small scale of the firm's operations, it cannot afford to purchase the expensive printers it needs to make greeting cards. Instead, it rents the printers from another organization. In the context of business financing, Sonor Designs renting essential business equipment from another company is an example of

Answer 1

Answer:

Asset leasing

Explanation:

Asset leasing is when the owner of an asset rents or leases it to a third party for payment or any other other type of favour.

During the period of the lease the third party has temporary ownership of the asset.

In the given scenario Sonor Designs cannot afford to purchase the expensive printers it needs to make greeting cards. Instead, it rents the printers from another organization.

This is a form of asset leasing