Which of the Following Is Not an Advantage of a Lease

Multiple Choice

Which of the following is not an advantage of a lease financing arrangement?

A) Companies with losses can still depreciate equipment if leased from a finance company.
B) Repossession is easier in a lease-finance arrangement because the finance company already owns the equipment.
C) Finance companies are in a good position to sell a repossessed asset, especially if they are a subsidiary of the equipment manufacturer.
D) The lessee often does not have to make as large of an upfront payment, relative to a straight loan.