Combination lease
Combination lease is a lease agreement that combines some aspects of both operating and financial leases. For example, a financial lease that contains a cancellation clause— normally associated with operating leases—is a combination lease.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Combination lease. Combines some aspects of both operating and financial leases. For example, a financial lease that contains a cancellation clause— normally associated with operating leases—is a combination lease.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
