State The Disadvantages Of Leasing?

1.	State The Disadvantages Of Leasing?
Answer» The LESSEE gets only the right to use the asset. In case the leasing company is wound up the asset may be taken back from the lessee thereby disrupting his operations. The lessee cannot make alterations or improvements in the asset without the prior approval of the lessor. The lessor may ALSO put some restrictions on the lessee. The lessee has to pay LEASE RENTALS on a REGULAR basis to the lessor.

Answer»

The LESSEE gets only the right to use the asset. In case the leasing company is wound up the asset may be taken back from the lessee thereby disrupting his operations.
The lessee cannot make alterations or improvements in the asset without the prior approval of the lessor. The lessor may ALSO put some restrictions on the lessee.
The lessee has to pay LEASE RENTALS on a REGULAR basis to the lessor.

Discussion