2024 CLFP Recertification Quiz #4: Benefits of Leasing CLFP Recertification: Quiz #4: Benefits of Leasing 1. According to the article, _______ has prompted many organizations to offer leases instead of loans. * Increased popularity among borrowers. New regulations and monitoring in the industry. Changes in ownership requirements. Tax incentives for lessors. 2. In rapidly evolving industries, how does leasing provide an advantage regarding asset utilization? * Leasing ensures a lessee will have complete ownership of the assets. Leasing allows a lessee to complete free asset upgrades. Leasing provides a lessee with access to the latest asset models without ownership commitment. Leasing restricts a lessee’s access to newer technologies for the long-term. 3. How does leasing contribute to the preservation of capital and credit lines for borrowers? * Leasing requires a borrower to make substantial upfront payments. Leasing restricts the borrower's ability to strategically allocate its funds. Leasing allows borrowers to maintain cash flow and liquidity by avoiding substantial upfront payments. Leasing requires borrowers to invest all available capital in the latest asset models. 4. Which of the following is considered the primary purpose of a lease? * To facilitate the lessee’s ownership of the financed assets. To maximize the lessee’s credit line utilization. To provide the lessee with temporary use of the assets. To offer the lessee a mechanism to build equity in the asset. 5. How does ownership differ between a lease and a loan? * The lessee takes ownership in a lease, while the lender retains ownership in a loan. The lessor retains ownership in a lease, while the borrower takes ownership in a loan. There is no difference. The lessor/lender is the owner until the end of the contract. Ownership is irrelevant. Name * Name First First Last Last Email * If you are human, leave this field blank. Submit
