CFM Exam Dumps | When would an organization choose a lease with a purchase option?

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Question 30/122

When would an organization choose a lease with a purchase option?

A. When tax rebates cannot be applied.

B. When it lacks the initial capital for the purchase.

C. When it has long-term plans to develop the real estate.

D. When it needs to partner with a developer.

Correct Answer: B

A lease with a purchase option is commonly chosen when an organization lacks the initial capital for an outright property purchase. This arrangement allows the organization to secure the use of a facility while deferring the financial burden of full ownership until later. Such an approach provides flexibility, preserves cash flow, and allows time to assess whether the location meets long-term strategic needs. Facility managers must consider factors like lease terms, maintenance obligations, and future financial impact before opting for this strategy.

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