Get premium membership and access questions with answers, video lessons as well as revision papers.
1. A lease may shift some or all of the maintenance costs onto the tenant thus increasing operating costs.
2. If circumstances dictate that a business must change its operations significantly, it may be expensive or otherwise difficult to terminate a lease before the end of the term.
3. If the business is successful, lessors may demand higher rental payments when leases come up for renewal. If the value of the business is tied to the use of that particular property, the lessor has a significant advantage over the lessee in negotiations.
4. It offers fixed rate financing; you pay at the same rate monthly thus putting constraints to the business especially when cash flows are not good.
Lellah answered the question on November 8, 2021 at 07:24
- State the advantages of leasing as a type long term financing.(Solved)
State the advantages of leasing as a type long term financing.
Date posted: November 8, 2021. Answers (1)
- Discuss retained profit as a source of short term finance.(Solved)
Discuss retained profit as a source of short term finance.
Date posted: November 8, 2021. Answers (1)
- Discuss loans as a source of short term finance.(Solved)
Discuss loans as a source of short term finance.
Date posted: November 8, 2021. Answers (1)
- Discuss working capital as a source of short term finance.(Solved)
Discuss working capital as a source of short term finance.
Date posted: November 8, 2021. Answers (1)
- Briefly describe two sources of business finance.(Solved)
Briefly describe two sources of business finance.
Date posted: November 8, 2021. Answers (1)
- State the regulatory functions of the Capital Markets Authority as provided by the Act and the regulations.(Solved)
State the regulatory functions of the Capital Markets Authority as provided by the Act and the regulations.
Date posted: November 8, 2021. Answers (1)
- Outline the benefits and drawbacks of listing a company.(Solved)
Outline the benefits and drawbacks of listing a company.
Date posted: November 8, 2021. Answers (1)
- State and explain roles of securities exchanges in the economy.(Solved)
State and explain roles of securities exchanges in the economy.
Date posted: November 8, 2021. Answers (1)
- Financial markets can be broadly classified through two major dimensions. Discuss.(Solved)
Financial markets can be broadly classified through two major dimensions. Discuss.
Date posted: November 8, 2021. Answers (1)
- Give the solutions to shareholders and government conflicts.(Solved)
Give the solutions to shareholders and government conflicts.
Date posted: November 8, 2021. Answers (1)
- What are some the actions a company and its shareholders as agents may take some that might prejudice the position or the interests of the...(Solved)
What are some the actions a company and its shareholders as agents may take some that might prejudice the position or the interests of the government as the principal?
Date posted: November 8, 2021. Answers (1)
- Give the solutions to shareholders and auditors conflicts.(Solved)
Give the solutions to shareholders and auditors conflicts.
Date posted: November 8, 2021. Answers (1)
- What actions do auditors take which are not in the best interests of the shareholders that may cause agency problems or conflict to arise?(Solved)
What actions do auditors take which are not in the best interests of the shareholders that may cause agency problems or conflict to arise?
Date posted: November 8, 2021. Answers (1)
- Outline solutions to the shareholders and creditors conflicts.(Solved)
Outline solutions to the shareholders and creditors conflicts.
Date posted: November 8, 2021. Answers (1)
- Explain the actions taken by shareholders when agency problems or conflict arise which reduce the market value of creditors’ debts.(Solved)
Explain the actions taken by shareholders when agency problems or conflict arise which reduce the market value of creditors’ debts.
Date posted: November 8, 2021. Answers (1)
- Outline the solutions to shareholders and management conflicts.(Solved)
Outline the solutions to shareholders and management conflicts.
Date posted: November 8, 2021. Answers (1)
- Briefly discuss the conflicts that may arise between shareholders and management when the managers may be enticed to pursue their own goals rather then that...(Solved)
Briefly discuss the conflicts that may arise between shareholders and management when the managers may be enticed to pursue their own goals rather then that of the shareholders.
Date posted: November 8, 2021. Answers (1)
- Describe the agency theory.(Solved)
Describe the agency theory.
Date posted: November 8, 2021. Answers (1)
- Briefly describe the role of money in economic growth.(Solved)
Briefly describe the role of money in economic growth.
Date posted: November 8, 2021. Answers (1)
- Briefly describe the important roles played by the finance manager.(Solved)
Briefly describe the important roles played by the finance manager.
Date posted: November 8, 2021. Answers (1)