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How can a lease be better than buying the item with capital?-What factors do you consider when evaluating a lease?

Leasing Decisions

Businesses generally own fixed (capital) assets. However, it the ability to use buildings and equipment that is important to the business, not their ownership. One way to obtain the use of capital assets is to lease them.

Address the following requirements:

  • What are the different types of leases?
  • How can a lease be better than buying the item with capital?
  • What factors do you consider when evaluating a lease?

Embed course material concepts, principles, and theories (which require supporting citations) in your initial response along with at least one scholarly, peer-reviewed journal article. Keep in mind that these scholarly references can be found in the Saudi Digital Library by conducting an advanced search specific to scholarly references. Use Saudi Electronic University academic writing standards and APA style guidelines.

 

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