What advantage do leases provide to companies?

Leasing offers companies the significant advantage of utilizing assets without the immediate and full expenditure associated with purchasing them outright. This approach allows businesses to maintain cash flow and allocate funds to other operational needs, rather than committing a large sum of money to acquire an asset.

When a company leases an asset, it can enjoy the benefits of using that asset while spreading the cost over the lease term, often with lower upfront costs. This financial strategy is particularly valuable for companies looking to preserve capital for other investments or those that may need flexibility in their asset management.

The option related to outright ownership emphasizes a different financial strategy, one that does not align with the characteristics of leasing. Similarly, the notion of a full cash-outlay contradicts the essence of leasing, as it is specifically designed to avoid immediate large expenditures. Finally, while leasing arrangements typically include terms regarding the asset's use and potential maintenance, they do not provide companies with complete control over the asset's depreciation. As such, the advantages of leasing fundamentally center around usage and financial management rather than ownership or depreciation control.