Final answer:
The option 'less costly financing' is not an advantage of leasing, as leasing can be more expensive than other financing methods in the long term. Leasing enables fixed-rate financing and off-balance sheet financing but can impose costs related to mileage and lease termination.
Step-by-step explanation:
The student's question relates to the disadvantages of leasing, such as a vehicle or equipment, compared to other forms of financing. Among the listed options, the one that is not an advantage of leasing is: less costly financing. While leasing does offer certain benefits, such as elimination of the risk of obsolescence, 100% financing at fixed rates, and off-balance sheet financing, it is not necessarily always less costly than other financing options.
On the contrary, leasing can sometimes be more expensive in the long run, considering factors such as total lease payments over time, potential charges for excess mileage, and lease termination fees.
Additionally, buying a car allows for full ownership and eliminates potential mileage overages, whereas leasing a car can be advantageous for getting a newer vehicle with smaller monthly payments. Accessing financial capital can involve borrowing from a bank, issuing bonds, or issuing stock, each with its own sets of pros and cons. Understanding these different financial strategies is crucial for a firm's economic success.