From the lessees perspective which of the following is not a

From the lessee’s perspective, which of the following is not a motivation to lease rather than buy equipment?

Solution

Lease is defined as a contract between two parties for use of assets of one parties by paying rent for using assets. the owner of assets is calls Lessor and the person who use assets is called Lessee. Primary motivation of lease as assets instead of buy it is Poor ability to bear obsolescence risk, Poor ability to bear project life risk, Poor ability to manage or pay for maintenance services, Poor or absent credit history.

So, Poor bargaining position with the seller of the equipment is not a motivation to lease rather than buy equipment.

Option (E) is correct answer.