Sample Essay on:
Leasing; The Reason its' Increasing Popularity

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Essay / Research Paper Abstract

This 9 page paper considers the increased use of leasing as a tool of commerce, consider how and why it has occurred as well as looking at the advantages that are presented n terms of cash flow and accenting practices. The writer finishes with consideration of the future of leasing. The bibliography cites 4 sources.

Page Count:

9 pages (~225 words per page)

File: TS14_TElease1.rtf

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Unformatted sample text from the term paper:

the variation in different accounting policies. However, one change appears to have occurred gradually will little attention of consideration, is the way that leasing has gown in terms of popularity and in terms of market share. There have been many reasons for this, some of which are practical, and some of which are fincial. If we consider this rise we also need to consider why it has occurred. When we consider the US this increase has been seen across almost every industry, form farm equipment and cars to computers and even software (PR Newswire, 2002, Knudsen, 1997). The influencing factors have been the economic conditions, rising costs, focus on short term returns and the greater availability as well as convenience that a lease can offer (Hendel and Lizzeri, 2002). Even in one single area of the economy; the small business sector, there is a projection of an increase in the number of leases and the turnover and demand for leases growing the industry by 51% real growth between 1994 and 2005 (Anonymous, 1994). To understand this we need to explain what we mean by a lease and how this differs from a purchase even where a loan is used. A finance agreement, where a purchase is made, the goods pass from the vendor to the purchaser, and so does the title to those goods. The purchasers will then make payments to the loan company that comprise of both interest and capital to repay the amount of money that had been borrowed. This means that the company owns the purchased good, and owes money to a loan company. A leased is more similar to a rental agreement. The equipments is leased on long ...

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