Question: What is the difference between operating leases and financial (capital) leases? Why would a lessee select an operating lease instead of a financial lease when

What is the difference between operating leases and financial (capital) leases? Why would a lessee select an operating lease instead of a financial lease when acquiring an asset? What type of assets are usually financed via operating leases? How does the nature of the lease impact taxes, capital structure, operational considerations for the firm that leases (lessee)?

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