Final answer:
Interlease risk typically becomes a factor to consider when comparing two leases with different term lengths. Option (B) is correct.
Step-by-step explanation:
The factor of interleave risk typically becomes a factor to consider when the tenant is comparing two leases with different term lengths. In this case, the tenant would need to assess the risks associated with each lease based on the specific terms and conditions.
The risk associated with the replacement of one five year lease with another five year lease of uncertain terms and conditions.
Risk classification of a leasing company. The group of external risks includes the following: legal and political risks, currency and interest risks, social and environmental risks, marketing risk and client insolvency risk. The latter implies the impossibility of the lessee making payments under the lease agreement.
Advantages of leasing include lower monthly payments, no long-term commitments, and minimal maintenance costs. Disadvantages include never owning the car, charges for damage or exceeding mileage limits, and restrictive terms and conditions.