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Eduncle posted an MCQ
October 13, 2019 • 20:14 pm 0 points
  • UGC NET
  • Commerce

A 'sale' and lease back' arrangement is more suitable for a lessee having

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    Eduncle Best Answer

    A ‘sale’ and lease back’ arrangement is more suitable for a lessee having liquidity crisis.
    A leaseback is an agreement where an asset’s seller leases back the asset from the purchaser. In a leaseback arrangement, the details of the arrangement, such as the lease payments and lease duration, are made immediately after the sale of the asset. Essentially, the seller of the asset becomes the lessee and the purchaser becomes the lessor.

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