Question

Tyoka has a small retail store in San Diego. He sells imported items such as clothing, arts, and crafts. He has recently sold the store to a group of investors. In the arrangement with the investors, Tyoka now leases his former store from the new investors. What type of financing applies to Tyoka's new arrangement?

Answer 1

Sale-Leaseback

Step-by-step explanation:

Hi! The answer would be Sale-Leaseback. Sale and leaseback is a financial transaction in which one sells an asset and leases it back for the long term; therefore, one continues to be able to use the asset but no longer owns it. In this case, Tyoka would need a sale-leaseback arrangement.