How might leasing lead to increased credit availability? Describe some economic factors that might provide an advantage to leasing?
Ans - The economic factors which might provide an advantage to leasing -
1 Less Initial requirement - The initial investment in leasing is not that high as compared to buying a new building or assets. By leasing firm can acquire the asset with the minimum initial investment.
2 Tax advantages- one of the advantages of leasing is lease payment can be reduced as a business expense on the tax return which in turn helps in reducing the net expense to lease the asset.
3 Flexible Terms - Leasing terms and conditions are not rigid and complex as compared when taking loans for buying assets or new machinery.
4 Flexibility to upgrade equipment -Leasing gives the flexibility to businesses to upgrade their equipment when it has become obsolete or outdated. If the lease is used to obtain items that may be outdated in a short time eg computers or tech equipment, the lease may pass the burden on to the lessor.
5 Credit ratings - There is no requirement of credit ratings as such to obtain a lease, therefore it is easy to obtain a lease and in an easy way as compared to buying or purchasing the asset.
6 Asset maintenance cost - Maintenance and repairing cost might not be required and it can increase the cash flow of the business but it depends on the terms and agreements of the business.
Leasing might lead to increased credit availability of the firm in many ways.
1 Many times business leases with 100% financing that means you don't have to put initial investment to purchase an asset which gives the firm to use its money in different resources and can increase the cash flow of the firm for initial years due to less investment which in turn increases the credit availability of the firm
2 Repair and maintenance costs can be cut down which saves the company's money and helps the firm to increase its credit availability but it depends on the agreement.
3 Leasing passes the burden of obsolete equipment on to the lessor which again saves the company's cost.
4 Tax advantages also help the firm to cut the cost of the company.
So all these factors help the firm in a direct or indirect way to save the money which in turn helps the company to have better access to credit.
How might leasing lead to increased credit availability? Describe some economic factors that might provide an advantage...
Describe some of the limitations of financial statements and how it might lead to unethical or accounting fraud. 21/Ims/dropbox/user/folder_submit_files.d2l?db=151932&grpid=0&isprv=08bp=0Bou=176296 Hide Folder Information Instructions In a word document describe some of the limitations of financial statements and how that might lead to unethical behavior or accounting fraud. Limit your answer to m.
describe milgrims experiments on obediance. what are some factors that increased and decreased conformity? why were these experiments controversial? Describe Milgrim's experiments on obedience. What are some factors that increased and decreased conformity? Why were these experiments controversial?
How might the existence of government safety net lead to increased concentration in the banking industry?
4) Describe the three factors that are involved in the development of social roles. How might individual constraints influence (positively and/or negatively) the development of a social role? Provide 2 specific examples.
What is meant by unbundling? How might this lead to more economic efficiency and less risk in the financial system? How do economies of scale fit it? What might investors be cautious about buying participations in a securities pool of loans? How is the is related to adverse selection? How might they be assured about the underlying quality of assets in the pool?
How might new technolognies, economic factors, social trends and evolving practice options for nurses affect future definitions of nursing? How might these factors affect the scope of nursing?
How might new technologies, economic factors, social trends, and evolving practice options for nurses affect future definitions of nursing? How these factors affect the scope of nursing?
What are some individual and sociocultural factors that may affect ELL students? How might these factors affect their success in meeting learning goals in the classroom setting?
Describe how expansionary activities conducted by the Federal Reserve impact credit availability, the money supply, interest rates, and security prices. Suppose the Federal Reserve purchases $10 billion worth of foreign currency in exchange for deposit accounts at the Federal Reserve. Show the changes that result from this transaction on the Fed’s balance sheet.
"Factors in relative abundance are cheaper than factors in relative scarcity"- In light of this view, Demonstrate Ohlin's Factor-proportions theory Describe what economic factors influence the success of the international transportation and logistics Industry? Discuss the role and impact of the three predominant types of economic systems in 1. 2. 3. international business. Discuss- How emotional intervention rule the international business without having a strong economic logic. 4. Explain the four great waves of theoretical approaches in globalization. 5. "Factors...