Acc 400 Wk 4 Dqs

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Acc 400 Wk 4 DQ

1.What are some of the various lease options? When would you use one option over the others? What could be the financial influence of this decision? The option to lease requires little or no money down. The various lease options are known as capital leases, sale type leases, direct financing leases, leveraged leases and operating leases. The general purpose, profitable margins and potential duration of need must be analyzed before a decision is formed to wager the best option for the organization. If the primary result is only to lease for short use and not to own (by obtaining the rights), then the lease option might prove to the better choice. The option for leasing may not serve as a better choice when the life span is short however, if that particular project can serve valuable down the line in years to come, leasing may not be the best way to turn.

2.Under which circumstances would you lease versus purchase? What are the criteria that you would use to make this decision? What is the financial influence of this decision?

Lease verses purchase is compared of renting or buying an item. The decision to leasing an item is the way of paying for the use of something and returning that particular item at the end of the lease, you also can resign for a new item and begin a new lease agreement. Another option is purchase whereas it is buying an item where you own it and you can do whatever you want to that item because it is yours, unless you sell it to someone else. In order to figure out the finical aspects of leas verse purchase is that leasing you have a set pay to pay and obligation that you have to maintain in the agreement or fine and penalties can take place. Now buying you can agree on a purchase price and pay it the item is you’re for your agreed price.

3.What are the components of the capital structure? What are the differences of these components? How do you determine the optimal mix of the components of...
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