Disadvantage of leasing an asset, Finance Basics

Disadvantage of Leasing an Asset

A. It is a pre-conditional finance as on the needs of asset

B. In the long term the lease charges might out-weigh the cost of buying own asset.

C. It is available for a chosen asset and this restrictions flexibility.

D. It is utilize for financing fixed assets and not working capital

E. Lease finance might not be renewed leading to loss of business.

F. Lease financing lowers such the company's credit rating that is the asset in the balance sheet is exposed as leased asset.

Posted Date: 1/29/2013 4:56:50 AM | Location : United States







Related Discussions:- Disadvantage of leasing an asset, Assignment Help, Ask Question on Disadvantage of leasing an asset, Get Answer, Expert's Help, Disadvantage of leasing an asset Discussions

Write discussion on Disadvantage of leasing an asset
Your posts are moderated
Related Questions

In mergers, acquisitions, or other relationships between hospitals and physician groups, what are the benefits to each party from entering into an arrangement with the other? What

Example of Dividend Basis Valuation Company Laxmi Synthetics pays a dividend of 10% on its Sh.60 par value ordinary shares.  This company uses a discount rate of 15%.  A

What is Bond Rate It is interest rate received on the face value or the par value of the bond. If a company or government issues a 10-year bond with 100$ as face value and 1


Comments : The approved budget for 1997, reduced government spending in housing and urban development, health and human service, and education. Ignoring any other modifications, ho

Incentive Problem and Consumption of Perquisites Incentive Problem Managers may have fixed salary and they may have no incentive to work hard and maximize shareholders weal

Explain the Operations of Indian Stock Market. Meaning of Stock Exchange: Stock exchange means an organized market where securities issued by government organizations, compan

Contracting Cost - Agency Costs These are costs acquired in devising the contract between the shareholders and managers. The contract is drawn to ensure management act in t

Cost of Redeemable Debentures and Preference Shares Redeemable fixed return securities have an exact maturity period.  The cost of those securities is called redemption yield