Respond to: the two types of leases that I have chosen are capital lease and operating lease. A capital lease is essentially a legal documented agreement that explains in detail long$-$term ownership of an asset by a company. It is similar to a loan for buying an asset. An operating lease is another type of agreement that is temporary. The individual renting the asset is not to assume risk and rewards of ownership. When the lease term is up the lessee can decide if they want to return the asset or renew the lease. In a capital lease at the end of the term, the asset could be transferred to the lessee and as for operating lease, ownership goes back to the lessor, unless the lessee decides they want to renew the lease. In capital leases an advantage is that it could be more cost$-$effective in the long run as you are making payments that actually count going toward the asset and a disadvantage was that the lessee has to pay for maintenance and various other ownership$-$related costs. In an operating lease, an advantage is that there is more flexibility for companies who need to replace equipment more often and the disadvantage is that individuals lose out on ownership of the asset in the end. Between the two, they are risky for different reasons but I would believe that operating lease would be less risky. If there were equipment failure then the lessor or the home owner has to repair it$.$ It would just depend on what you believe to be right.