Question

An arrangement in which one
can use the asset on rent without
buying it is called as-
Answer
A. Outright purchase
B.Lease
C. Hire purchase
D. Capital expenditure​

Answer 1

B. Lease as you don’t own the property but still using it

Answer 2

The correct response to the given question is option B: Lease.

• A lease is a legal agreement between two parties, one of whom is the actual owner of a commodity or property, and the other is referred to as the renter.
• The renter has the right to use the genuine owner's property under specific terms and conditions for a set length of time in exchange for a monthly fee or payment.
• Outright acquisition refers to purchasing a property as its whole and gaining complete control.
• The term "hire purchase" refers to the process of repaying a set amount of money according to loan amount with interest until the property is fully acquired.
• Spending money on assets is referred to as capital expenditure.
• As a result, the correct answer to the given context is Lease.