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UGC-NET | UGC NET CS 2015 Dec – III | Question 48

  • Last Updated : 12 Jun, 2018

As compared to rental and leasing methods to acquire computer systems for a Management Information System (MIS), purchase method has following advantage:
(A) It has high level of flexibility
(B) It doesn’t require cash up-front
(C) It is a business investment
(D) Little risk of obsolescence


Answer: (C)

Explanation: As compared to rental and leasing methods to acquire computer systems for a Management Information System (MIS), purchase method has following advantage it is a business investment.
Other Advantages of renting and leasing:

  • No capital is tied up
  • No financing is required

    Disadvantages:

  • Expensive
  • Company doesn’t own the system when the aggrement

    So, option (C) is correct.

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