1.The company’s asset will be removed from the balance sheet which will in essence affect its financial position i.e reflect a bad financial picture.
2.The lessee may not enjoy the benefits of wear and tear as such this will increase his tax liability.
3.The finance is limited to the cost of the asset leased, and cannot be versatile.
4.If it is an operating lease, then it will be used for short-term purpose.
5.It entails implicit costs such as repairs and maintenance costs of the asset leased.
sharon kalunda answered the question on April 16, 2019 at 14:24
-
State the advantages of using Sale and Lease Back.
(Solved)
State the advantages of using Sale and Lease Back.
Date posted:
April 16, 2019
.
Answers (1)
-
Give the differences between invoice discounting and factoring.
(Solved)
Give the differences between invoice discounting and factoring.
Date posted:
April 16, 2019
.
Answers (1)
-
Highlight the similarities between invoice discounting and factoring.
(Solved)
Highlight the similarities between invoice discounting and factoring.
Date posted:
April 16, 2019
.
Answers (1)
-
What are the disadvantages of using Invoice discounting as a source of finance?
(Solved)
What are the disadvantages of using Invoice discounting as a source of finance?
Date posted:
April 16, 2019
.
Answers (1)
-
Outline the disadvantages of promissory note.
(Solved)
Outline the disadvantages of promissory note.
Date posted:
April 16, 2019
.
Answers (1)
-
Highlight the disadvantages (limitations) of using Trade Credit.
(Solved)
Highlight the disadvantages (limitations) of using Trade Credit.
Date posted:
April 16, 2019
.
Answers (1)
-
Give the reasons why trade credit is popular in Kenya.
(Solved)
Give the reasons why trade credit is popular in Kenya.
Date posted:
April 16, 2019
.
Answers (1)
-
Discuss the classifications of debt Finance.
(Solved)
Discuss the classifications of debt Finance.
Date posted:
April 16, 2019
.
Answers (1)
-
Outline the similarities between Ordinary and Preference Shares Capital
(Solved)
Outline the similarities between Ordinary and Preference Shares Capital.
Date posted:
April 16, 2019
.
Answers (1)
-
Highlight the roles played by the Government in Promoting business incubation.
(Solved)
Highlight the roles played by the Government in Promoting business incubation.
Date posted:
April 16, 2019
.
Answers (1)
-
State the Benefits of business Incubation.
(Solved)
State the Benefits of business Incubation.
Date posted:
April 16, 2019
.
Answers (1)
-
Outline the main causes of business Incubation.
(Solved)
Outline the main causes of business Incubation.
Date posted:
April 16, 2019
.
Answers (1)
-
The Importance of Screening of a business idea.
(Solved)
The Importance of Screening of a business idea.
Date posted:
April 16, 2019
.
Answers (1)
-
Describe the Process of Screening a Business Idea.
(Solved)
Describe the Process of Screening a Business Idea.
Date posted:
April 16, 2019
.
Answers (1)
-
State and explain the Negative Impact of Entrepreneurship to Economic Development.
(Solved)
State and explain the Negative Impact of Entrepreneurship to Economic Development.
Date posted:
April 16, 2019
.
Answers (1)
-
Describe the Theories of Entrepreneurship.
(Solved)
Describe the Theories of Entrepreneurship.
Date posted:
April 16, 2019
.
Answers (1)
-
Discuss the steps taken by the Government towards Promoting Entrepreneurship.
(Solved)
Discuss the steps taken by the Government towards Promoting Entrepreneurship.
Date posted:
April 16, 2019
.
Answers (1)
-
Discuss the cultural habits that promote entrepreneurial development.
(Solved)
Discuss the cultural habits that promote entrepreneurial development.
Date posted:
April 16, 2019
.
Answers (1)
-
What Constitutes Entrepreneurial Culture?
(Solved)
What Constitutes Entrepreneurial Culture?
Date posted:
April 16, 2019
.
Answers (1)
-
Discuss the requirements of Innovation.
(Solved)
Discuss the requirements of Innovation.
Date posted:
April 16, 2019
.
Answers (1)