For a lesser, a lease is a:

Investment decision
Financing decision
Dividend decision
None of the above

The correct answer is: A. Investment decision

A lease is an agreement between a lessor (owner of the asset) and a lessee (user of the asset) in which the lessor agrees to allow the lessee to use the asset for a specified period of time in return for periodic payments. For a lesser, a lease is an investment decision because it involves the commitment of resources (the asset) in the expectation of future benefits (the lease payments).

The other options are incorrect because:

  • A financing decision is a decision about how to raise funds for a business. A lease is not a financing decision because it does not involve raising funds.
  • A dividend decision is a decision about how to distribute profits to shareholders. A lease is not a dividend decision because it does not involve distributing profits.
  • None of the above is a correct answer because it does not specify which of the options is correct.
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