CIPS L4M7 Question Answer
An organisation needs to determine whether to lease a piece of equipment or purchase it outright. From the following statements, which ones describe the advantages for a procurement organisation to lease rather than to purchase outright?
Capital allowances may be set against tax, and grants may be available
There is no initial investment which would tie up the organisation’s working capital
It would protect against technological obsolescence as equipment can be replaced as required
The total cost may be higher than purchasing the equipment outright
CIPS L4M7 Summary
- Vendor: CIPS
- Product: L4M7
- Update on: Jul 30, 2025
- Questions: 255
