Dubious Reasons ■ Leasing avoids capital expenditure controls Leasing preserves capital ■ Leases may be off-balance-sheet financing Leasing affects book income --increasing book income or decreasing book asset value. slide 14slide 14 Dubious Reasons Dubious Reasons ƒ Leasing avoids capital expenditure controls ƒ Leasing preserves capital ƒ Leases may be off-balance-sheet financing ƒ Leasing affects book income -- increasing book income or decreasing book asset value