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Answer Posted / gowrishankar.s
There are 2 types:
1. Operating lease
In this type you only get to use the asset for a
particular period of time, after that you have to return the
asset. this type is preferred when the asset we hire has a
high degree of obsolescence.
2. Financial lease
In this type you get to use the asset for a
particular period of time and at the end of the period you
become the owner of that asset. the lease charge is
substantially higher as it includes the principal value
along with the usage charges.
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