Question

Which of the following explains the risk underlying an operating lease?
a.
Operating leases help to shift the risk of obsolescence from the user to the lessor.

b.
Operating leases help to shift the risk of obsolescence from the lessor to the user (lessee).

c.
Operating leases help to shift the risk of obsolescence from the user to the lessee.

d.
Operating leases help to balance the risk of obsolescence between the lessor and lessee.

Answer 1

Your question's answer is

(a). Operating leases help to shift the risk of obsolescence from the user to the lessor.