Sources of Business Finance · Class 11 · CBSE · Commerce Business Studies
An agreement where one party allows another party to use its asset in exchange for periodic lease rentals, without transferring ownership, is known a…
Practice question from Sources of Business Finance (Class 11 · CBSE · Commerce Business Studies), with the correct answer and a step-by-step solution.
easy · MCQ · Q-42954D
An agreement where one party allows another party to use its asset in exchange for periodic lease rentals, without transferring ownership, is known as:
- A.Factoring
- B.Lease financingCorrect answer
- C.Trade credit
- D.Underwriting
Solution
Lease financing is a contractual agreement where the owner (lessor) grants the right to use an asset to the user (lessee) for a specific period in return for periodic lease payments.
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