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Why might a company choose a capital lease instead of raising debt to purchase an asset? a. A capital lease does not have to be
Why might a company choose a capital lease instead of raising debt to purchase an asset?
a. A capital lease does not have to be included in a companys assets and liabilities.
b. A capital lease will likely not have restrictive covenants.
c. A leasing company may provide more favourable financing terms than a bank.
d. B & C
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