A firm is most likely to lease an asset rather than purchasing it if the asset:

a$.$ may be made obsolete by rapid technological advances.

b$.$ is costly to move from place to place.

c$.$ has a high salvage value relative to its cost.

Larry Purcell, an entry$-$level fixed income analyst at Knowlton & Smeades LLC$,$ was discussing debt covenants with his supervisor, Andy Holzman. During the meeting Purcell made the following statements regarding bond covenants:

Statement $1$: If a firm violates any of its debt covenants, the company will immediately go into bankruptcy and the creditors of the firm will take over the liquidation of its assets.

Statement $2$: Debt covenants are important in evaluating a firm's credit risk and to better understand how the restrictions of the covenants can affect the firm's growth prospects and choice of accounting policies.

With respect to these statements:

a$.$ both are correct.

b$.$ both are incorrect.

c$.$ only one is correct.