The scenario described refers to a financial arrangement commonly known as leasing. In a lease agreement, one party (the lessor) provides the right to use an asset, such as real estate, vehicles, or equipment, to another party (the lessee) in exchange for regular periodic payments.

Leasing is beneficial for both parties; the lessor retains ownership of the asset while earning income from the lease payments, and the lessee gains access to the asset without the upfront costs associated with purchasing it. This arrangement is particularly useful for businesses that prefer to maintain liquidity, invest their capital in growth opportunities, or acquire equipment or property without the risk associated with ownership.

Therefore, the correct term to fill in the blank is **"leasing."**

Question

The scenario described refers to a financial arrangement commonly known as leasing. In a lease agreement, one party (the lessor) provides the right to use an asset, such as real estate, vehicles, or equipment, to another party (the lessee) in exchange for regular periodic payments.

Leasing is beneficial for both parties; the lessor retains ownership of the asset while earning income from the lease payments, and the lessee gains access to the asset without the upfront costs associated with purchasing it. This arrangement is particularly useful for businesses that prefer to maintain liquidity, invest their capital in growth opportunities, or acquire equipment or property without the risk associated with ownership.

Therefore, the correct term to fill in the blank is **"leasing."**

Knowee AI · Accepted Answer

The scenario described refers to a financial arrangement commonly known as leasing. In a lease agreement, one party (the lessor) provides the right to use an asset, such as real estate, vehicles, or equipment, to another party (the lessee) in exchange for regular periodic payments.

Leasing is beneficial for both parties; the lessor retains ownership of the asset while earning income from the lease payments, and the lessee gains access to the asset without the upfront costs associated with purchasing it. This arrangement is particularly useful for businesses that prefer to maintain liquidity, invest their capital in growth opportunities, or acquire equipment or property without the risk associated with ownership.

Therefore, the correct term to fill in the blank is **"leasing."**

When one party grants the right to use the asset to the other party, in return for a periodic payment, it is known as __________.

Question

When one party grants the right to use the asset to the other party, in return for a periodic payment, it is known as __________.

Solution

Similar Questions

Upgrade your grade with Knowee