Economics · Financial Management
Given below are two statements: One is labeled as Assertion A and the other is labeled as Reason R. Assertion A: Usually manufacturing companies use sale and leaseback arrangements to unlock investment in fixed assets. Reason R: In a sale and leaseback arrangement, the company sells the asset to a leasing company and leases it back to enjoy the uninterrupted use of the asset in their business. In the light of the above statements, choose the most appropriate answer from the options given below:
- 1A is false but R is true
- 2A is true but R is false
- 3Both A and R are true but R is not the correct explanation of A
- 4Both A and R are true and R is the correct explanation of A✓
Correct answer
Both A and R are true and R is the correct explanation of A
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