Question

What are the advantages of leasing equipment for a new business

a. no hassles of an aging asset
b. all of the answers are correct
c. beginning operations with a minimum cash outlay
d. ability of the business to trade up as newer high-quality machines become available

Answer 1

Leasing equipment for a new business offers advantages such as no hassles of aging assets, minimum cash outlay, and the ability to trade up for newer machines.

Step-by-step explanation:

Leasing equipment for a new business has several advantages:

• No hassles of an aging asset: Leasing allows you to use new and up-to-date equipment, which reduces the risk of breakdowns and the need for costly repairs.
• Beginning operations with a minimum cash outlay: Leasing typically requires a smaller upfront payment compared to purchasing equipment outright, allowing you to conserve your cash for other business expenses.
• Ability to trade up as newer high-quality machines become available: Leasing provides flexibility, as you can easily upgrade to newer and more advanced equipment as they become available in the market.