Compare and contrast two types of leases and describe the advantages and disadvantages of each. Which type of lease would produce the lowest risk?

The two types of leases are Operating lease, Capital, or financial lease. Operating lease in this operating lease, there will be no purchase of asset or buying Option. Any damage of an investment or risk will be taken care of by the lessor. There is no running cost. The main benefit is a tax because no depression will be collected. An operating lease is purely a lease concept. With an agreement, it generally rents assets. The owner of this asset will generally be a lessor in this operating lease. It doesn't affect the balance sheet of the company for this lease. Capital lease in this capital lease, there will be a purchase option. The lesser person will take any damage or risk of an asset. Their running cost is higher. There will be depression, and interest will be collected. As the name itself says, Capital or financial lease deals with borrowing money to buy an asset. The assets may get transferred at the end of the lease, so the owner is the leasing person. It affects the lease financial statement, assets, liability, and this capital lease is treated as debt. Finally, the company generally uses both leases an operating lease and a capital lease. It depends upon their requirements as well as tax ownership. The operational lease will produce low risk because of no tax, no damage payable, etc.

How does the passage below relate to the topic for this discussion board information above ?

"Sluggards do not plow in season; so at harvest time they look but find nothing." - Proverbs 20:4 (NIV)