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Which of the Following Is NOT an Advantage of Leasing

Question 7

Multiple Choice

Which of the following is NOT an advantage of leasing from the lessor's perspective (compared with offering a straight loan) ?


A) Leasing has a relatively low default risk.
B) Administration costs may be lower for a lease than for a straight loan.
C) The return to the lessor may be higher than for a straight loan.
D) The lessor may use the funds for other investment opportunities.

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