Asked by Ysobelle Eustaquio on Jun 14, 2024
Verified
Chuck pays a lease for his centrally located software shop. He pays the same amount to lease the building each month, but his landlord covers the operating expenses such as taxes, insurance, and repairs. Chuck's lease can best be described as a ______.
A) gross lease
B) net lease
C) net-net lease
D) triple-net lease
Gross Lease
A lease in which the monthly payment made by the tenant remains the same and the landlord pays the operating expenses of the building.
Operating Expenses
Costs associated with the day-to-day operations of a business, excluding cost of goods sold.
- Ascertain the different forms of leasing arrangements and their impacts on business operations.
Verified Answer
RT
Reyna TinajeroJun 15, 2024
Final Answer :
A
Explanation :
A gross lease is where the tenant pays a flat rental amount, and the landlord pays for all property charges regularly incurred by the ownership.
Learning Objectives
- Ascertain the different forms of leasing arrangements and their impacts on business operations.