In business studies, a leasing agreement refers to a contract between a lessor (the owner) and a lessee (the user) for the use of a specific asset for a specified period in exchange for regular payments. The asset could include equipment, vehicles, or property.
The leasing agreement outlines the terms and conditions of the lease, including the lease term, the amount of rent payable, any security deposits or upfront payments required, responsibilities for maintenance and repairs, and options for renewal or termination of the lease.
Leasing agreements provide a flexible and cost-effective alternative to purchasing assets outright, allowing businesses to access the use of assets without the burden of ownership. They are commonly used in various industries to acquire equipment, vehicles, and office spaces while conserving cash flow and maintaining operational efficiency.
What is a leasing agreement in business studies
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