The correct answer is: C. Operating Lease
An operating lease is a type of lease agreement that is typically for a shorter period of time than a finance lease. Operating leases are often cancellable, which means that the lessee can terminate the lease early without penalty. This makes operating leases a good option for businesses that need flexibility in their leasing arrangements.
Finance leases, on the other hand, are typically for a longer period of time and are not cancellable. Finance leases are more like a purchase agreement than a lease agreement, as the lessee is essentially borrowing money from the lessor to purchase the asset.
Net leases are a type of lease agreement in which the lessee is responsible for all of the costs associated with the leased asset, including property taxes, insurance, and maintenance. Net leases are often used for commercial properties.
Leverage leases are a type of finance lease in which the lessor borrows money to finance the purchase of the asset. The lessee then makes payments to the lessor, which include both interest and principal. Leverage leases are often used for large, expensive assets.
In conclusion, a short-term lease which is often cancellable is known as an operating lease.