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An organization might find it more beneficial to lease and use an asset over a...

An organization might find it more beneficial to lease and use an asset over a predetermined period. After this period, the lessee has the right to secure outright ownership of the asset by paying an agreed amount; otherwise, the asset would be repossessed by the lessor. Which of the following is an advantage of leasing?

A.

Long-term commitment to pay installments even if not using the asset

B.

Costs are known and agreed in advance

C.

The usage of the asset is usually capped

D.

The total cost of ownership is not applicable as the asset is leased

CIPS L4M7 Summary

  • Vendor: CIPS
  • Product: L4M7
  • Update on: Jul 30, 2025
  • Questions: 255
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