Assets needed only on a temporary basis is a legitimate reason for leasing rather than buying.

Temporary Basis

A condition or status applied for a limited time period, often used in finance to describe temporary adjustments or measures.

Assets

Resources owned or controlled by a business or an individual that are expected to produce economic value or benefit in the future.

Leasing

Leasing is a financial agreement in which one party, the lessor, allows another party, the lessee, to use an asset for a specified period in exchange for periodic payments.

Analyze the consequences of asset wear and tear, temporary demands, and restrictive stipulations on determining whether to lease or purchase.

Verified Answer

Liang SheenaJun 23, 2024

Final Answer :

True

Explanation :

Leasing provides flexibility and reduces the financial burden of purchasing assets that are only needed for a short period, making it a practical option for temporary requirements.

Learning Objectives

Analyze the consequences of asset wear and tear, temporary demands, and restrictive stipulations on determining whether to lease or purchase.

Assets needed only on a temporary basis is a legitimate reason for leasing rather than buying.

Definitions

Learning Objectives

Learning Objectives

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