BTEC Business – Personal Finance Practice Exam 2025 - Free Personal Finance Practice Questions and Study Guide

Question: 1 / 400

What does leasing a property indicate?

You own the property outright

You hold a contract that states ownership

You are renting the property without ownership

Leasing a property signifies that you are renting the property without ownership. In a lease agreement, the lessee (tenant) pays rent to the lessor (landlord) for the right to use the property for a specified period. This arrangement grants the tenant possession and use of the property but does not confer ownership rights. The tenant is responsible for adhering to the terms of the lease while enjoying the benefits of living or conducting business in the space, all without the financial obligations and long-term commitment that come with ownership. This distinction is crucial in understanding personal finance, as leasing can impact budgeting, cash flow, and asset management differently than owning a property or having a mortgage.

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You have a mortgage on the property

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