Assertion (A): Wealth maximisation considers the value of shareholders’ investment. Reason (R): Leasing may reduce the immediate purchase of fixed assets.

For the following practice assertion–reason questions, choose: (A) Both A and R are true, and R correctly explains A. (B) Both are true, but R does not correctly explain A. (C) A is true, but R is false. (D) A is false, but R is true.

Answer – (B) Both are true but the financing alternative does not explain the objective.