What is a Lease?

a. A rental agreement between owner of a flat/house and the Tenant, whereby the Tenant pays specified amount on specified dates to the owner

b. A legal contract between the owner of an asset and its user, containing many conditions including payment of a specified amount by the user to the Owner for use of the asset

c. Both (1) and (2)

d. None of the above

ANSWER: A legal contract between the owner of an asset and its user, containing many conditions including payment of a specified amount by the user to the Owner for use of the asset

Explanation:

Lease financing for equipment is provided by banks, captives and independent finance companies.