Which of the following questions should a new business owner examine when considering leases?

• A. What is the current market value of the landlord's property portfolio?
• B. How many employees does the landlord have?
• C. Does the lease agreement include a clause about the owner's personal hobbies?
• D. What are the total costs and payment terms associated with the lease agreement?

Answer: (D)

Verified step by step guidance

1. Step 1: Understand the context of the question. A lease agreement is a legal contract between a landlord and a tenant, outlining the terms and conditions for renting property. For a new business owner, the financial implications of the lease are critical to assess.
2. Step 2: Identify the relevant factors in a lease agreement. These typically include total costs (e.g., rent, maintenance fees, utilities) and payment terms (e.g., due dates, penalties for late payments, duration of the lease). These factors directly impact the business's financial planning and cash flow.
3. Step 3: Eliminate irrelevant considerations. Questions about the landlord's property portfolio, number of employees, or personal hobbies are not pertinent to the lease agreement and do not affect the business owner's financial obligations or decision-making process.
4. Step 4: Focus on the financial aspects of the lease agreement. The business owner should carefully review the total costs and payment terms to ensure they align with the business's budget and operational needs.
5. Step 5: Verify the lease agreement for additional clauses. Look for clauses related to renewal options, termination conditions, and any hidden fees that could affect the business's financial stability in the long term.