Disadvantage of leasing an asset, Finance Basics

Assignment Help:

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.


Related Discussions:- Disadvantage of leasing an asset

What is the role of a broker in security transactions, What is the role of ...

What is the role of a broker in security transactions? How are brokers compensated? Ans: Brokers handle orders to sell or buy securities. Brokers are agents who work in place o

Mutual fund, investment procedure of mutual fund

investment procedure of mutual fund

Operational and financial aspects , In mergers, acquisitions, or other rela...

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

Routine functions - finance function, Routine functions - Finance Function ...

Routine functions - Finance Function For the effective execution of the managerial finance functions, schedule functions have to be performed.  These decisions relate systems

The lcm rule, Require  the relevant authoritative literature on the lower- ...

Require  the relevant authoritative literature on the lower- of- cost- or- market rule for valuing inventory using the FASB's Codification Research System. Clarify the circumstance

Discuss possible reasons for the merger , Investigate a recent company merg...

Investigate a recent company merger or take-over and: i)  Critically evaluate the means by which managers may determine the bid price in such acquisitions. (You should use the b

Importance of interest rates, Importance of Interest Rates These are o...

Importance of Interest Rates These are of a specifically relevance to a finance manager since: i) They measure the cost of borrowing. ii) Interest rates in a country influen

Business finance and financial management, Business Finance and Financial M...

Business Finance and Financial Management Business finance is the process through which a financial manager or accountant gives finance for business use as and whenever it i

Determinants of working capital needs, Determinants of Working Capital Need...

Determinants of Working Capital Needs There are few factors that determine the firm's working capital needs. These factors are comprehensively enclosed with a Textbook of Busi

Management of sole proprietorship, Management of Sole Proprietorship  I...

Management of Sole Proprietorship  In sole proprietorship the owner is usually in charge of day to day running of the business. If the business is large he may give some duties

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd