Asked by moses munyai on Apr 28, 2024
Verified
A(n) __________ is a special type of lease transaction generally involving three parties instead of two.
A) consumer lease
B) sale
C) finance lease
D) option
Finance Lease
A type of lease in which the lessee has use of the asset for a longer period, which is most of the asset's useful life, and the lease payments cover the full cost of the asset.
- Understand the role and implications of finance leases in commercial transactions.
Verified Answer
TM
Taylor ManningApr 28, 2024
Final Answer :
C
Explanation :
A finance lease, also known as a capital lease, typically involves three parties: the lessor, the lessee, and the financier. This arrangement allows the lessee to use the asset while the financier funds its purchase, with the lessor retaining ownership.
Learning Objectives
- Understand the role and implications of finance leases in commercial transactions.