Problem
Leasing companies often promote the following two benefits of leasing. Critique the merits of each hypothesized benefit.
a. Leasing preserves a business's liquidity because it avoids the large cash outlay associated with buying the asset.
b. Leasing (with operating leases) allows businesses to use more debt financing than would otherwise be possible because leasing keeps the liability off the books.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.