Question

your company is ready to open a storefront but has limited cash flow. what are the two advantages of leasing instead of buying? (choose 2.) note: you will receive partial credit for each correct answer. a. equity earned from appreciation b. lower up - front costs c. lower maintenance costs d. accrued long term wealth

Explanation:

• Lower up - front costs: Leasing typically requires less initial capital compared to buying, which is beneficial for a company with limited cash flow.
• Lower maintenance costs: In many lease agreements, the lessor (owner) is responsible for maintenance, reducing the lessee's (tenant) cost burden.

Answer:

B. Lower up - front costs, C. Lower maintenance costs