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
The business plan for a new company that has obtained a 5 year lease for operating a local bus service is shown below.  Items marked with an asterisk represent continuous cash flow

what is bank draft?How it can be prepared?

Stock Market Index Definition of Stock Market Index An index is a numerical figure that measures relative change in variables between two type of durations. Examples

1. Suppose company A expects to increase unit sales of i-phone by 15% per year for the next 5 years. If you currently sell 3 million i-phones in one year, how many phones do you ex

Joint Stock Companies - Types of Business Organisations Initiators contribute to the capital support of those companies via the purchase of shares of those companies. These co


(Interest-rate risk) Philadelphia Electric has many bonds trading on the New York Stock Exchange. Suppose PhilEl''s bonds have identical coupon rates of 9.125% but that one issue m


advances from foreigners

explain any four actions or transactions by shareholders that could be harmful to the interests of debt holders (sources of conflict). estion #Minimum 100 words accepted#