Purchase Solution

Leasing equipment versus buying equipment

Not what you're looking for?

Ask Custom Question

I need help getting started on my paper. I need to describe the factors that need to be considered if a company was looking to purchase new equipment and they were going to lease the equipment versus buying the equipment.

Purchase this Solution

Solution Summary

Leasing equipment versus buying equipment are examined.

Solution Preview


Lease is a way by which a firm obtains equipment in return to contractual and periodic payments that may be tax deductible. Lease does not provide transfer of ownership from the lessor to the lessee.
Purchasing is obtaining ownership of equipment in return to an amount as agreed between the buyer and the seller.
In coming up with decisions as to whether needed equipment must be bought or purchased, the following factors may be considered and would help in coming up with the decision:
1. Available fund or capital. If the business owner or the firm has limited capital, a better option would be to lease the equipment. Leasing does not require a business owner to have large initial outflow in order to obtain equipment. For an established business with adequate and ready capital for the ...

Solution provided by:
  • Bachelor of Science in Business Administration, University of the Philippines
  • Master in Business Administration, Saint Mary's University
  • Doctor of Philosophy in Education, University of the Philippines
  • Doctor in Business Adminstration (IP), Polytechnic University of the Philippines
Recent Feedback
  • "Excellent information thanks for the input"
  • "Thank you"
  • "Very thorough and informative. Thank you."
  • "Good response. Very detailed"
  • "This solution is excellent. Thank you"
Purchase this Solution

Free BrainMass Quizzes
Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.