In a(n) Blank______ lease, the lessor does not select, manufacture, or supply the goods.Multiple choice question.leveragedfinanceoperatingconsumer

In a(n) operating lease, the lessor does not select, manufacture, or supply the goods.

Explanation

An operating lease is a rental agreement where the lessor owns the asset and leases it to the lessee for a specific period. The lessor is responsible for the investment risk and maintenance, while the lessee simply utilizes the asset. Unlike a financing or capital lease, which involves more of a long-term commitment and may transfer ownership risks, an operating lease allows businesses to use equipment without committing to purchase it. This is particularly beneficial for companies looking to manage cash flow, reduce long-term liabilities, or avoid the risks associated with asset ownership. Other options in the multiple-choice question, like leveraged finance or consumer leases, do not fit this definition.