UGC NET COMMERCE June 2019 Q3
0. A ‘sale and lease back’ arrangement is more suitable for a lessee having:
- Option : A
- Explanation : ‘Sale and Lease-back’ arrangements provide the advantage of better liquidity, since it enables the lessee to make a sale of the asset owned to the prospective lessor, and then take the asset back on lease. This helps a lessee-firm to overcome a liquidity crunch by being in a position to sell and realize cash. This helps overcome working capital crises.
