Economics · Leasing and Finance
Which best describes a 'Sale and Lease Back' arrangement?
- 1Lessor sells assets to lessee; lessee pays installments for use.
- 2Lessee purchases assets from lessor and then leases them back to the lessor.
- 3Lessee acquires assets after the lease and pays through periodic lease payments.
- 4Lessee sells assets to lessor and leases them back, retaining use and receiving sale proceeds.✓
Correct answer
Lessee sells assets to lessor and leases them back, retaining use and receiving sale proceeds.
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