Question

Leasing has become the number one method of external financing by U.S. companies. Reasons include each of the following except: Multiple Choice Tax advantages. Extended use of the asset. Protection against obsolescence. Lower upfront cash needed to use an asset.

Answer 1

Extended use of the asset.

Step-by-step explanation:

The major advantages of leasing include operational, financial and tax incentives. When you lease an asset, the entire amount is taken as an expense, which might benefit a company if you compare it to the normal depreciation of a building (which lasts 39 years). Leasing also lowers the amount of foreign investment and it is easier to carry out than purchasing assets.