Financial Equipment Leasing Discussion

Financial Equipment Leasing Discussion1. A(n) ______________ is a contract wherein, over the term
of the ______________, the owner of the equipment permits another entity to use it in exchange for a promise by
the latter to make a series of ______________. The owner
of the equipment is referred to as the ______________.
The entity that is being granted permission to use the
equipment is referred to as the ______________.
2. ______________ leases fall into two general categories:
______________-oriented leases and ______________-oriented true leases. ______________-oriented leases, also
referred to as ______________ leases, transfer all incidents
of ownership of the leased property to the lessee and usually
give the lessee a fixed ______________, bargain purchase
option, or ______________ option not based on fair market value at the time of exercise. Substantial cost savings
Ch27 Page 263 Tuesday, December 16, 2003 9:17 AM
264 QUESTIONS AND PROBLEMS
can often be achieved through the use of ______________-
oriented true leases in which the ______________ claims
and retains the tax benefits of ownership and passes
through to the ______________ a portion of such tax benefits in the form of reduced lease payments.
3. The most frequent ______________ cited by ______________
company representatives and ______________ is that leasing ______________ working capital. The reasoning is as
follows: When a firm ______________ money to purchase
equipment, the lending institution rarely provides an
amount ______________ to the entire price of the equipment to be financed. Instead, the lender requires the
______________ firm to take a(n) ______________ position in the equipment by making a down ______________.
4. The amount of the down ______________ will depend on
such factors as the type of ______________, the
______________ of the borrower, and prevailing
______________ conditions. ______________, in contrast,
typically provides 100% financing because it does not
require the firm to make a down payment. Moreover,
costs incurred to acquire the equipment, such as
______________ and ______________ charges, are not
usually covered by a loan agreement. They may, however,
be structured into a(n) ______________ agreement.
5. Current financial reporting ______________ for leases
require that lease obligations classified as ______________
Ch27 Page 264 Tuesday, December 16, 2003 9:17 AM
Equipment Leasing 265
leases be capitalized as a(n) ______________ on the
______________ sheet. A(n) ______________ lease is
______________ capitalized. Instead, certain information
regarding such leases must be disclosed in a(n)
______________ to the ______________ statement. Many
chief financial officers avoid ______________ leases to
enhance the financial image of their corporations; instead
they prefer ______________ leases.
6. With a(n) ______________ operating lease, the lessee can
avoid the risk of ______________ by terminating the contract. However, the ______________ of risk is not without
a(n) ______________ as the lease payments under such
lease arrangements reflect the risk of obsolescence perceived by the lessor. At the end of the lease term, the
______________ of the obsolete equipment becomes the
problem of the ______________. The risk of loss in residual ______________ that the lessee passes on to the lessor
is embodied in the ______________ of the lease.
7. An advantage of leasing is that lease agreements typically do
not impose financial ______________ and ______________
on management as does a(n) ______________ agreement
used to finance the purchase of equipment. The historic
reason for this in ______________ leases is that the
______________ Service discouraged ______________ leases
from having attributes of ______________ agreements.
Ch27 Page 265 Tuesday, December 16, 2003 9:17 AM
266 QUESTIONS AND PROBLEMS
8. In a properly structured ______________ lease arrangement,
the ______________ lease payment from leasing rather than
borrowing can provide a lessee with a(n) ______________
cash flow. Whether the cash flow on a(n) ______________
basis after taking the residual value of the equipment into
account is ______________ on a present value basis must be
ascertained. Lease payments under a(n) ______________
lease will usually have ______________ impact on
______________ earnings during the early years of the lease
than will ______________ and ______________ payments
associated with the purchase of the same equipment.
9. Corporate lessors may be generally categorized as
______________ banks or their ______________, independent ______________ companies, ______________
leasing subsidiary companies of nonfinance companies,
______________ companies or their subsidiaries,
______________ banking firms, and subsidiaries of life
or casualty ______________ companies.
10.Many banks and bank holding companies or their subsidiaries participate ______________ in leasing through
______________ relationships with independent and captive leasing companies. ______________ leasing or finance
companies are generally ______________ of equipment
manufacturers, and their primary purpose is to secure
financing for the customers of the ______________ company. ______________ also may be involved in the
______________ financing of equipment other than that
manufactured by their parent company.
Ch27 Page 266 Tuesday, December 16, 2003 9:17 AM
Equipment Leasing 267
11.Lease ______________ and financial ______________ can
perform a useful service for both lessees and lessors in
arranging ______________ leases. They can be especially
helpful to a lessee by obtaining attractive ______________
from a legitimate investor and advising the lessee in
______________ and ______________ the transaction.
While lease brokers and financial advisers typically represent ______________, they can be helpful to a(n)
______________ in finding solutions to negotiating issues.
For its services as an intermediary, the broker or adviser
receives a(n) ______________ commission. The amount of
the remuneration depends on the ______________ and
______________ of the deal to the lessor in the prevailing
economic ______________.
12.The __________ lease provides the lessee with __________
benefits and the lessor with __________ benefits. The lease is
treated as a(n) __________ sheet item and protects the lessee’s __________ of acquiring the residual value of the leased
equipment at the termination of the lease.

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more
Open chat
1
You can contact our live agent via WhatsApp! Via + 1 929 473-0077

Feel free to ask questions, clarifications, or discounts available when placing an order.

Order your essay today and save 20% with the discount code GURUH