Owning provides flexibility but can lead to costs in the long-term.
a less; higher
b greater; higher
c greater; lower
d less; lower

Owning provides less flexibility but can lead to lower costs in the long-term.  Correct D

Less flexibility because you can change it or modificate it not so easy.

But owning also means that you don't have to pay rent or pay for it monthly, and that way you will save money in long term.

The correct option is option (D) i.e. less, lower.

Further Explanation:

Owning is belonging to oneself or itself. For example, buy the property, acquire the machinery, and acquire the equipment. Owning gives less flexibility because, at the time of acquiring, it requires a large amount of money. The owner does not want to provide a huge amount of money repetitively. Therefore, it provides less flexibility. Owning can lead to lower costs in the long term. For example, the rent for eight years is more than the original cost of the property. Thus, it can lead to reduce costs in the long term.

Justification for the correct and incorrect

A.

Greater; lower: This option is incorrect.

Since owning does not provide greater flexibility but can lead to lower costs in the long term. Renting gives greater flexibility because the owner is flexible to change their land repetitively according to their needs.

B.

Greater, higher: This option is incorrect.

Since owning does not provide greater flexibility and also cannot lead to higher costs in the long term. Renting provides greater flexibility, as the owner is flexible to change their home repetitively according to their needs. Renting leads to higher costs, as changing the home repetitively creates an extra cost of transferring the things.

C.

Less; lower: This option is correct.

Owning provides less flexibility because, at the time of purchasing, it requires a huge amount of money. Owning can lead to lower costs in the long term.

D.

Less; higher: This option is incorrect.

wning provides less flexibility because, at the time of purchasing, it requires a huge amount of money. The owner may not be able to invest a huge amount of money repetitively. That’s why it provides less flexibility. But owning does not lead to higher costs in the long term.

Learn more:

1. Learn more about renting

2. Learn more about owning

3. Learn more about the purchase of a car

Answer details:

Grade: Middle School

Subject: Accounting

Chapter: Owning vs. Renting  

Keywords: Owning, less flexibility, can lead, lower cost, renting, in the long term.

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