1.it is an expensive source of finance and in most case the interest on it may outweigh bank rates and at the end of the hire purchase contract the total installments paid may double the cost of the asset.
2.it involves a lot of formalities to obtain e.g legal implications and accounting formalities prior to
Signing Hire Purchase Agreement.
sharon kalunda answered the question on April 16, 2019 at 14:30
- State the advantages of using hire purchase as a source of finance.(Solved)
State the advantages of using hire purchase as a source of finance.
Date posted: April 16, 2019. Answers (1)
- Outline the conditions under which Hire Purchase is an ideal source of finance.(Solved)
Outline the conditions under which Hire Purchase is an ideal source of finance.
Date posted: April 16, 2019. Answers (1)
- State the disadvantages of using sale and lease back.(Solved)
State the disadvantages of using sale and lease back.
Date posted: April 16, 2019. Answers (1)
- 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)
- Highlight the advantages of using invoice discounting as a source of finance.(Solved)
Highlight the advantages 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)