Which of the Following Would Be Disadvantages of Leasing Facilities

Multiple Choice

Which of the following would be disadvantages of leasing facilities?

A) When the lease period is over, you must return the asset to the lessor.
B) Although the lessor can, at additional cost, extend a lease or sell you the asset, the lessor is under no obligation to do so.
C) You will not have to continue to pay off the lease, even if you are actually using the equipment.
D) A lease is a legal obligation and generally cannot be canceled.
E) Over the long run, leasing costs more than owning because included in the lease payment is a profit to the lessor.