Unit 5 hirepurchase and Lease
•Download as PPTX, PDF•
3 likes•363 views
The presentation covers features, advantages and disadvantages of Hire Purchase. In addition to this, the concept of Lease is explained better.
Report
Share
Report
Share
Recommended
Hire Purchase System and Installment Purchase System
Hire purchase and installment purchase systems allow buyers to obtain goods through periodic installment payments rather than paying the full price up front. Under the hire purchase system, ownership transfers to the buyer once final payment is made, while the buyer has possession of the goods. In contrast, under the installment purchase system ownership and possession transfer immediately to the buyer upon agreement, but the buyer pays in installments over time. Key differences between the two systems relate to ownership rights, ability to return goods, and remedies available to the seller in case of late or missed payments.
Lease finance
This document discusses leasing and different types of leases. It defines leasing as a method of financing where the lessor retains ownership of an asset while allowing the lessee to use it by paying rentals over time. There are two main types of leases: finance/capital leases where the lessee selects an asset and pays rentals to cover its full cost, and operating leases for assets used for less than their full economic life. Real estate leasing involves renting property through a rental agreement or lease. The document also outlines advantages like financing flexibility and tax benefits, and disadvantages such as inadequate protection for the lessee and higher interest costs compared to other financing modes.
Lease and Hire Purchase
This document compares lease and hire purchase agreements. A lease is a contract allowing one party to use land, property or services for a specified time in exchange for periodic payments but the user does not own the asset. Hire purchase allows a buyer to pay for an item through regular installments while using it, with the goal of eventual ownership. The two agreements differ in ownership, financing structure, accounting of depreciation, available tax benefits, treatment of salvage value, required deposits, rent-to-own options, extent of financing, responsibility for maintenance, and financial reporting requirements.
lease financing and hire purchase
The document compares and contrasts leasing and hire purchase financing. Leasing involves an agreement between a lessor and lessee where the lessee pays periodic lease rentals to use an asset over time, but ownership remains with the lessor. Hire purchase allows a hirer to pay for an asset in installments, with ownership transferring to the hirer after the final payment. Key differences include that leasing is typically used to finance business assets while hire purchase can be for business or consumer goods, and ownership transfers to the hirer under hire purchase but reverts to the lessor under leasing.
Leasing
This document provides an overview of leasing. It discusses the history and meaning of leasing, including definitions from experts. It outlines the steps in a typical leasing process and describes various types of leases. The advantages to lessors include assured regular income, preservation of ownership, tax benefits, and high profitability. Advantages to lessees are use of capital goods, tax benefits, cheaper financing, and technical assistance. Disadvantages are also presented, such as inflation risk for lessors and compulsory payments even if the asset is not needed for lessees. In summary, the document defines leasing, outlines the leasing process, and discusses the pros and cons from the perspectives of both lessors and les
HIRE PURCHASE SYSTEM
Hire purchase is a method of financing large purchases by making installment payments over time. The ownership of the purchased item is not transferred to the buyer until all payments are made. Companies offer hire purchase to earn a profit from interest charged on the monthly payments. Key features include installment payments, retention of ownership by the seller until final payment, and an option for the buyer to either purchase the item or return it. Hire purchase allows buyers immediate use of expensive assets by spreading costs over time, but the total amount paid is higher than the upfront cost and the buyer cannot resell the item until owning it outright.
Types of leasing by maninder singh
There are two main types of leasing arrangements: finance (or capital) leases and operating leases. A finance lease involves the lessee selecting an asset that the lessor purchases and the lessee pays rentals to use. The lessee typically has the option to purchase the asset at the end. An operating lease is a short-term rental of an asset where ownership remains with the lessor and maintenance is usually the lessee's responsibility. Hire purchase allows a buyer to obtain goods by paying in installments, with ownership transferring after the final payment. Key differences between leases and hire purchase include who owns the asset, who claims depreciation, duration, and responsibility for repairs.
Hire purchase
Hire purchase is a mode of financing where goods are sold on a future date with the purchase price paid through installments. The goods are leased to the hirer, who has the option to purchase them by paying all installments. Key features include payment in installments over a set period, possession delivered at contract but ownership passes on final payment, and the seller can take back goods if installments are defaulted on. The finance company purchases goods and leases them to the hirer in exchange for a down payment and monthly installments covering principal and interest. Hire purchase differs from installment sales in that the hirer can terminate before final payment, while ownership transfers with first payment in installment sales.
Recommended
Hire Purchase System and Installment Purchase System
Hire purchase and installment purchase systems allow buyers to obtain goods through periodic installment payments rather than paying the full price up front. Under the hire purchase system, ownership transfers to the buyer once final payment is made, while the buyer has possession of the goods. In contrast, under the installment purchase system ownership and possession transfer immediately to the buyer upon agreement, but the buyer pays in installments over time. Key differences between the two systems relate to ownership rights, ability to return goods, and remedies available to the seller in case of late or missed payments.
Lease finance
This document discusses leasing and different types of leases. It defines leasing as a method of financing where the lessor retains ownership of an asset while allowing the lessee to use it by paying rentals over time. There are two main types of leases: finance/capital leases where the lessee selects an asset and pays rentals to cover its full cost, and operating leases for assets used for less than their full economic life. Real estate leasing involves renting property through a rental agreement or lease. The document also outlines advantages like financing flexibility and tax benefits, and disadvantages such as inadequate protection for the lessee and higher interest costs compared to other financing modes.
Lease and Hire Purchase
This document compares lease and hire purchase agreements. A lease is a contract allowing one party to use land, property or services for a specified time in exchange for periodic payments but the user does not own the asset. Hire purchase allows a buyer to pay for an item through regular installments while using it, with the goal of eventual ownership. The two agreements differ in ownership, financing structure, accounting of depreciation, available tax benefits, treatment of salvage value, required deposits, rent-to-own options, extent of financing, responsibility for maintenance, and financial reporting requirements.
lease financing and hire purchase
The document compares and contrasts leasing and hire purchase financing. Leasing involves an agreement between a lessor and lessee where the lessee pays periodic lease rentals to use an asset over time, but ownership remains with the lessor. Hire purchase allows a hirer to pay for an asset in installments, with ownership transferring to the hirer after the final payment. Key differences include that leasing is typically used to finance business assets while hire purchase can be for business or consumer goods, and ownership transfers to the hirer under hire purchase but reverts to the lessor under leasing.
Leasing
This document provides an overview of leasing. It discusses the history and meaning of leasing, including definitions from experts. It outlines the steps in a typical leasing process and describes various types of leases. The advantages to lessors include assured regular income, preservation of ownership, tax benefits, and high profitability. Advantages to lessees are use of capital goods, tax benefits, cheaper financing, and technical assistance. Disadvantages are also presented, such as inflation risk for lessors and compulsory payments even if the asset is not needed for lessees. In summary, the document defines leasing, outlines the leasing process, and discusses the pros and cons from the perspectives of both lessors and les
HIRE PURCHASE SYSTEM
Hire purchase is a method of financing large purchases by making installment payments over time. The ownership of the purchased item is not transferred to the buyer until all payments are made. Companies offer hire purchase to earn a profit from interest charged on the monthly payments. Key features include installment payments, retention of ownership by the seller until final payment, and an option for the buyer to either purchase the item or return it. Hire purchase allows buyers immediate use of expensive assets by spreading costs over time, but the total amount paid is higher than the upfront cost and the buyer cannot resell the item until owning it outright.
Types of leasing by maninder singh
There are two main types of leasing arrangements: finance (or capital) leases and operating leases. A finance lease involves the lessee selecting an asset that the lessor purchases and the lessee pays rentals to use. The lessee typically has the option to purchase the asset at the end. An operating lease is a short-term rental of an asset where ownership remains with the lessor and maintenance is usually the lessee's responsibility. Hire purchase allows a buyer to obtain goods by paying in installments, with ownership transferring after the final payment. Key differences between leases and hire purchase include who owns the asset, who claims depreciation, duration, and responsibility for repairs.
Hire purchase
Hire purchase is a mode of financing where goods are sold on a future date with the purchase price paid through installments. The goods are leased to the hirer, who has the option to purchase them by paying all installments. Key features include payment in installments over a set period, possession delivered at contract but ownership passes on final payment, and the seller can take back goods if installments are defaulted on. The finance company purchases goods and leases them to the hirer in exchange for a down payment and monthly installments covering principal and interest. Hire purchase differs from installment sales in that the hirer can terminate before final payment, while ownership transfers with first payment in installment sales.
Leasing
Leasing is a contract where an owner (lessor) provides an asset to a user (lessee) for a fixed period of time in exchange for regular payments (rentals). There are two main types of leases: finance leases, where the lessee is effectively the asset's owner, and operating leases, where the lessor retains ownership. Finance leases typically cover most of an asset's useful life while operating leases are shorter. Other lease types include leveraged leases which involve multiple parties, and sale and leaseback where an asset is sold and then leased back from the buyer.
Hire purchase finance
Hire purchase is a form of financing where goods are leased with the option to purchase. Key aspects include:
- Payments are made in installments over a set period, with possession given initially but ownership transferring after the final payment.
- If payments are defaulted on, the seller can repossess the goods. The hirer can also return goods before completing payments.
- A hire purchase agreement has aspects of both a bailment for the lease period and a sale when the purchase option is exercised.
- Ownership transfers to the hirer on the final payment, but the financier retains ownership until then despite the hirer controlling the goods.
leasing and hire purchase
1) Leasing is a contractual agreement where the owner of an asset (lessor) grants exclusive use of the asset to another party (lessee) for an agreed period in exchange for rental payments.
2) Leasing is used to finance various types of assets for both consumers and businesses. Common assets financed include machinery, vehicles, equipment, and more.
3) There are different types of leasing agreements such as financial leases, operating leases, and leverage leases. Financial leases typically involve long-term agreements while operating leases are usually short-term.
Leasing
The document discusses various types of leases including financial leases, operating leases, sale and leaseback arrangements, and international leasing. It defines key lease terms and parties. It also outlines the regulatory framework for leases under contract law and discusses lease documentation and agreements.
Leasing report
The document discusses leasing, which is a contract between an asset's owner (lessor) and user (lessee) for the right to use the asset. There are two main types of leasing: financial leases, where all ownership risks and rewards are transferred to the lessee, and operating leases, where the lessor retains all ownership risks and rewards. Leasing provides advantages like better capital usage, low upfront costs, and flexibility, but also disadvantages like reduced returns and penalties for early termination.
Hire purchase and lease
Hire Purchase System
The process of Hire Purchase
Features of Hire Purchase
Advantages and Disadvantages of Hire Purchase
Contents of Hire Purchase agreement
Installment Purchase
Important Definitions
Difference between Hire Purchase and Installment Purchase
Difference between Sales and Hire Purchase
Lease
Features of Lease
Merits and Demerits of Lease
Difference between Hire Purchase and Lease
Leaseing 1
Lease financing involves an arrangement where the owner (lessor) of an asset transfers possession and right to use the asset to another party (lessee) for an agreed period of time in exchange for rental payments. There are two main types of leases: finance leases and operating leases. Finance leases typically involve long-term agreements where the lessee takes on most of the risks and benefits of asset ownership, while operating leases are usually shorter term agreements where the lessor retains responsibility for the asset. Lease financing can provide businesses with an alternative to purchasing assets outright and offers tax benefits compared to other forms of financing.
Lease finance-presentation
This document provides an overview of leasing and lease financing. It defines what a lease is and discusses the key aspects of lease agreements such as rental payments, maintenance clauses, cancellation provisions, renewal and purchase options.
It distinguishes between operating leases and finance/capital leases. Operating leases are typically short-term while finance leases are longer-term and transfer most of the risks and rewards of ownership to the lessee.
The document also covers the different methods of lease financing including sales-leasebacks, direct leases, and leveraged leases. It discusses the advantages and disadvantages of lease financing for both lessees and lessors. Finally, it compares long-term debt versus leasing
Leasing
A lease is a contractual agreement where a lessee pays a lessor to use an asset for a specified lease period. There are typically two parties, with leasing commonly used to finance high-value equipment. Key considerations of leases include ownership, upfront costs, monthly payments, tax treatment, depreciation, and legal aspects which are governed by bailment provisions in India's Contract Act since no separate leasing law exists.
leasing
Leasing is a contractual agreement where a lessor provides an asset to a lessee. There are two main types of leasing: operating leases and financial leases. Operating leases involve short term agreements where costs are paid by the owner, while financial leases cover the asset's cost over the lease period through rentals paid by the lessee. Financial leases can take various forms like sale-leaseback, direct leasing, or leverage leasing. Leasing provides advantages to both lessees through financing flexibility and to lessors through higher profits.
Lease presentation
lease financing
,
types of lease
,
selection criterion of leasing
,
advantage of leasing
,
disadvantages of leasing
Leasing–regulatory framework
This document discusses the regulatory framework and key elements of leasing agreements. It notes that a lease involves an owner (lessor) providing an asset to a user (lessee) for a set period of time in exchange for periodic rental payments. The lessor retains ownership of the asset during the lease term. There are two main types of leases: finance leases, which cover most or all of the asset's economic life and transfer ownership; and operating leases, which are shorter term and do not transfer all ownership risks/rewards to the lessee. Key parties, assets, terms, rentals, termination methods, and situations that define a finance lease are described.
Hire purchase
Hire purchase is a method of sale where goods are leased by a creditor, usually a finance company, to a customer. The customer takes possession of the goods and agrees to pay for them in periodic installments. Ownership remains with the creditor until the final installment is paid, at which point it transfers to the customer. Hire purchase agreements must be in writing and include details of the goods, purchase price, installment amounts and due dates. The customer can terminate the agreement at any time before ownership transfers.
Leasing
Lease Financing
Terminology
The advantages of leasing
Limitation of leasing
Types of Leasing
Financial lease
Operating lease
Sale and lease back
Leveraged leasing
Direct leasing
Other types
Problems of leasing in India
Itm.leasing
A lease defines the relationship between an owner and tenant regarding the use of property for a specified period of time. There are different types of leases, including gross, net, triple-net, and percentage leases. A lease includes essential elements such as the leased asset, rental payments, lease period, residual value, and end-of-term options for the tenant. Laws governing leases include contract law, property law, and various acts regarding registration, stamp duty, and rent control.
(Hp)hire purchase
Hire purchase originated in the early 19th century as a way for consumers to acquire goods through installment payments rather than outright purchase. Key points:
- Under hire purchase, possession of goods is transferred immediately but legal ownership transfers once all installments are paid.
- It allows consumers to pay for expensive items like vehicles or equipment over time through a down payment and monthly installments.
- Hire purchase grew in popularity in the 20th century, especially after World Wars I and II, as it facilitated economic activity and acquisition of goods.
LEASE & ITS TYPES
Leasing is a contract between an owner (lessor) and lessee for the hiring of an asset. There are two main types of leases: operating leases and finance leases. An operating lease lasts for a period less than the asset's useful life, while a finance lease lasts the asset's full useful life and transfers substantially all risks and rewards of ownership to the lessee. When evaluating a lease, firms should compare the NPV of leasing versus purchasing an asset using the after-tax cost of debt as the discount rate. Common lease types include capital/financial leases, direct financing leases, and sale-leaseback agreements. Finance leases require lessees to capitalize the leased asset and
Lease
Lease financing allows a person to use an asset without owning it by paying rent over time. It has grown as a major financing option globally. A lease financing contract grants a lessee exclusive use of an asset, like equipment, for an agreed period in exchange for regular rental payments. It allows businesses access to assets without large upfront costs.
Leasing
A lease is a contract where the owner (lessor) allows a user (lessee) to use an asset for a specified period in exchange for periodic rental payments. There are two main types of leases: financial leases, which transfer ownership at the end, and operating leases, which do not. The document outlines the key parties, terms, and responsibilities in a lease agreement as well as different types of lease structures.
Ib&fs module 6
Leasing involves a lessor providing equipment or property to a lessee in exchange for periodic payments. There are several types of leases, including finance leases where ownership transfers to the lessee, and operating leases which are shorter term. Key elements of any lease include the parties, asset, lease term, and rental payments. The leasing process involves selecting an asset, signing a lease agreement, and the lessor acquiring the asset for the lessee. Leasing provides advantages to both lessors and lessees such as tax benefits and avoiding large upfront costs.
Unit 1-fm-intrduction-1 ppt
This document provides definitions and concepts related to financial management. It defines financial management as dealing with planning and controlling a firm's financial resources. The document outlines the traditional, transitional, and modern approaches to financial management. It discusses the functions of financial management including investment, financing, and dividend decisions. The objectives of financial management are described as profit maximization and wealth maximization. The document also covers the importance of effective financial management.
Unit 1-accounting introduction-ppt
Introduction to Accounting- Prepared by Dr, THULASI KRISHNA.K, Dept. of Management Studies, MITS, Madanapalle, A.P., INDIA
More Related Content
What's hot
Leasing
Leasing is a contract where an owner (lessor) provides an asset to a user (lessee) for a fixed period of time in exchange for regular payments (rentals). There are two main types of leases: finance leases, where the lessee is effectively the asset's owner, and operating leases, where the lessor retains ownership. Finance leases typically cover most of an asset's useful life while operating leases are shorter. Other lease types include leveraged leases which involve multiple parties, and sale and leaseback where an asset is sold and then leased back from the buyer.
Hire purchase finance
Hire purchase is a form of financing where goods are leased with the option to purchase. Key aspects include:
- Payments are made in installments over a set period, with possession given initially but ownership transferring after the final payment.
- If payments are defaulted on, the seller can repossess the goods. The hirer can also return goods before completing payments.
- A hire purchase agreement has aspects of both a bailment for the lease period and a sale when the purchase option is exercised.
- Ownership transfers to the hirer on the final payment, but the financier retains ownership until then despite the hirer controlling the goods.
leasing and hire purchase
1) Leasing is a contractual agreement where the owner of an asset (lessor) grants exclusive use of the asset to another party (lessee) for an agreed period in exchange for rental payments.
2) Leasing is used to finance various types of assets for both consumers and businesses. Common assets financed include machinery, vehicles, equipment, and more.
3) There are different types of leasing agreements such as financial leases, operating leases, and leverage leases. Financial leases typically involve long-term agreements while operating leases are usually short-term.
Leasing
The document discusses various types of leases including financial leases, operating leases, sale and leaseback arrangements, and international leasing. It defines key lease terms and parties. It also outlines the regulatory framework for leases under contract law and discusses lease documentation and agreements.
Leasing report
The document discusses leasing, which is a contract between an asset's owner (lessor) and user (lessee) for the right to use the asset. There are two main types of leasing: financial leases, where all ownership risks and rewards are transferred to the lessee, and operating leases, where the lessor retains all ownership risks and rewards. Leasing provides advantages like better capital usage, low upfront costs, and flexibility, but also disadvantages like reduced returns and penalties for early termination.
Hire purchase and lease
Hire Purchase System
The process of Hire Purchase
Features of Hire Purchase
Advantages and Disadvantages of Hire Purchase
Contents of Hire Purchase agreement
Installment Purchase
Important Definitions
Difference between Hire Purchase and Installment Purchase
Difference between Sales and Hire Purchase
Lease
Features of Lease
Merits and Demerits of Lease
Difference between Hire Purchase and Lease
Leaseing 1
Lease financing involves an arrangement where the owner (lessor) of an asset transfers possession and right to use the asset to another party (lessee) for an agreed period of time in exchange for rental payments. There are two main types of leases: finance leases and operating leases. Finance leases typically involve long-term agreements where the lessee takes on most of the risks and benefits of asset ownership, while operating leases are usually shorter term agreements where the lessor retains responsibility for the asset. Lease financing can provide businesses with an alternative to purchasing assets outright and offers tax benefits compared to other forms of financing.
Lease finance-presentation
This document provides an overview of leasing and lease financing. It defines what a lease is and discusses the key aspects of lease agreements such as rental payments, maintenance clauses, cancellation provisions, renewal and purchase options.
It distinguishes between operating leases and finance/capital leases. Operating leases are typically short-term while finance leases are longer-term and transfer most of the risks and rewards of ownership to the lessee.
The document also covers the different methods of lease financing including sales-leasebacks, direct leases, and leveraged leases. It discusses the advantages and disadvantages of lease financing for both lessees and lessors. Finally, it compares long-term debt versus leasing
Leasing
A lease is a contractual agreement where a lessee pays a lessor to use an asset for a specified lease period. There are typically two parties, with leasing commonly used to finance high-value equipment. Key considerations of leases include ownership, upfront costs, monthly payments, tax treatment, depreciation, and legal aspects which are governed by bailment provisions in India's Contract Act since no separate leasing law exists.
leasing
Leasing is a contractual agreement where a lessor provides an asset to a lessee. There are two main types of leasing: operating leases and financial leases. Operating leases involve short term agreements where costs are paid by the owner, while financial leases cover the asset's cost over the lease period through rentals paid by the lessee. Financial leases can take various forms like sale-leaseback, direct leasing, or leverage leasing. Leasing provides advantages to both lessees through financing flexibility and to lessors through higher profits.
Lease presentation
lease financing
,
types of lease
,
selection criterion of leasing
,
advantage of leasing
,
disadvantages of leasing
Leasing–regulatory framework
This document discusses the regulatory framework and key elements of leasing agreements. It notes that a lease involves an owner (lessor) providing an asset to a user (lessee) for a set period of time in exchange for periodic rental payments. The lessor retains ownership of the asset during the lease term. There are two main types of leases: finance leases, which cover most or all of the asset's economic life and transfer ownership; and operating leases, which are shorter term and do not transfer all ownership risks/rewards to the lessee. Key parties, assets, terms, rentals, termination methods, and situations that define a finance lease are described.
Hire purchase
Hire purchase is a method of sale where goods are leased by a creditor, usually a finance company, to a customer. The customer takes possession of the goods and agrees to pay for them in periodic installments. Ownership remains with the creditor until the final installment is paid, at which point it transfers to the customer. Hire purchase agreements must be in writing and include details of the goods, purchase price, installment amounts and due dates. The customer can terminate the agreement at any time before ownership transfers.
Leasing
Lease Financing
Terminology
The advantages of leasing
Limitation of leasing
Types of Leasing
Financial lease
Operating lease
Sale and lease back
Leveraged leasing
Direct leasing
Other types
Problems of leasing in India
Itm.leasing
A lease defines the relationship between an owner and tenant regarding the use of property for a specified period of time. There are different types of leases, including gross, net, triple-net, and percentage leases. A lease includes essential elements such as the leased asset, rental payments, lease period, residual value, and end-of-term options for the tenant. Laws governing leases include contract law, property law, and various acts regarding registration, stamp duty, and rent control.
(Hp)hire purchase
Hire purchase originated in the early 19th century as a way for consumers to acquire goods through installment payments rather than outright purchase. Key points:
- Under hire purchase, possession of goods is transferred immediately but legal ownership transfers once all installments are paid.
- It allows consumers to pay for expensive items like vehicles or equipment over time through a down payment and monthly installments.
- Hire purchase grew in popularity in the 20th century, especially after World Wars I and II, as it facilitated economic activity and acquisition of goods.
LEASE & ITS TYPES
Leasing is a contract between an owner (lessor) and lessee for the hiring of an asset. There are two main types of leases: operating leases and finance leases. An operating lease lasts for a period less than the asset's useful life, while a finance lease lasts the asset's full useful life and transfers substantially all risks and rewards of ownership to the lessee. When evaluating a lease, firms should compare the NPV of leasing versus purchasing an asset using the after-tax cost of debt as the discount rate. Common lease types include capital/financial leases, direct financing leases, and sale-leaseback agreements. Finance leases require lessees to capitalize the leased asset and
Lease
Lease financing allows a person to use an asset without owning it by paying rent over time. It has grown as a major financing option globally. A lease financing contract grants a lessee exclusive use of an asset, like equipment, for an agreed period in exchange for regular rental payments. It allows businesses access to assets without large upfront costs.
Leasing
A lease is a contract where the owner (lessor) allows a user (lessee) to use an asset for a specified period in exchange for periodic rental payments. There are two main types of leases: financial leases, which transfer ownership at the end, and operating leases, which do not. The document outlines the key parties, terms, and responsibilities in a lease agreement as well as different types of lease structures.
Ib&fs module 6
Leasing involves a lessor providing equipment or property to a lessee in exchange for periodic payments. There are several types of leases, including finance leases where ownership transfers to the lessee, and operating leases which are shorter term. Key elements of any lease include the parties, asset, lease term, and rental payments. The leasing process involves selecting an asset, signing a lease agreement, and the lessor acquiring the asset for the lessee. Leasing provides advantages to both lessors and lessees such as tax benefits and avoiding large upfront costs.
What's hot (20)
Viewers also liked
Unit 1-fm-intrduction-1 ppt
This document provides definitions and concepts related to financial management. It defines financial management as dealing with planning and controlling a firm's financial resources. The document outlines the traditional, transitional, and modern approaches to financial management. It discusses the functions of financial management including investment, financing, and dividend decisions. The objectives of financial management are described as profit maximization and wealth maximization. The document also covers the importance of effective financial management.
Unit 1-accounting introduction-ppt
Introduction to Accounting- Prepared by Dr, THULASI KRISHNA.K, Dept. of Management Studies, MITS, Madanapalle, A.P., INDIA
Unit 2 tk-technology in business research - thulasi krishna
Unit 2 tk-technology in business research - thulasi krishnaMadanapalle Institute of Technology & Science
The document discusses various technologies used for business research, including the internet, electronic mail (email), and the world wide web (www). It provides details on the origins and development of these technologies. The internet began in 1969 between universities and the Department of Defense to create a communications network resilient to battle conditions. Email allows for inexpensive and almost instantaneous communication without both parties needing to be online simultaneously. The world wide web was invented in 1989 by Tim Berners-Lee and organizes information into documents called web pages that can include graphics, video, and sound, formatted using HTML and XML languages.Unit 2-ethichs-tk
ETHICS AND BUSINESS RESEARCH - Ethics in business research refers to a code of conduct or expected societal norm of behaviour while conducting research. ETHICS IN SOCIAL SCIENCE RESEARCH
Unit 2 tk-softwares in br
Groupware allows teams to jointly work on projects and access data across departments. Neural networks are designed to recognize patterns in data to enable tasks like sales forecasting and process control. Computer-aided manufacturing (CAM) and computer-aided design (CAD) software helps with product design and manufacturing. Enterprise resource planning (ERP) software manages data from business activities like production, sales, and inventory. Data analytic software programs like SPSS and SAS obtain and analyze raw survey data which can then be presented through business graphics. Group video conferencing integrates with other technologies to facilitate consultative decision making and data sharing across organizations.
Unit 1-introduction-Business Research Methods -Dr. Thulasi Krishna
Unit 1-introduction-Business Research Methods -Dr. Thulasi KrishnaMadanapalle Institute of Technology & Science
This document provides an introduction to business research. It defines research as a careful investigation or inquiry through search for new facts and knowledge. Research involves discovery of new knowledge through observation and experimentation. It is concerned with solving problems and demands accurate data collection and analysis. The main purpose of research is to produce applicable knowledge, and it also forms the foundation for program development and policies. Business research specifically aims to gather information to aid decision-making in business. It identifies opportunities and threats, and is important for a company's success or failure. Business research refers to systematically collecting and analyzing data to find answers to management problems.Types of Research -Business Research Methods
Types of Research -Business Research Methods-Basic Research, Action Research, Analytical Research etc.
Unit 2-fm-capital budgeting tk-ppt
This document discusses capital budgeting and capital expenditure. It defines capital budgeting as long-term planning for capital outlays whose returns will be realized in future periods. Capital expenditure involves acquiring or improving fixed assets that provide benefits over many years. The document outlines the objectives, importance, difficulties and process of capital budgeting. It also discusses factors influencing investment decisions and different types of capital budgeting decisions.
Unit 1-tk-part-2
Corporate Tax Planning - Residential Status of Persons - Assessment Year 2016-17 by Dr. Thulasi Krishna. K
Business Research Methods - Hypothesis
Hypothesis is a tentative statement about the relationship between two or more variables that is tested for reliability and validity. There are several types of hypotheses including null, alternative, descriptive, relational, non-directional, causal, statistical, and complex hypotheses. Hypotheses should be clear, testable, specific, consistent with known facts, and explain the phenomenon under investigation. Common sources of hypotheses include observation, analogies, intuitions, previous study findings, and theories.
Unit 2-ethichs-tk
Ethics and Business Research - Ethical issues of research sponsorship - Ethical issues of researchers - Ethical issues related to respondents
BRM -Dr. TK - Research report
Research Report Writing, Need. Functions and Qualities of Good Research Report.........Steps in Research Report Writing
BRM - Dr. TK - Characteristics of a Good Questionnaire
A good questionnaire should:
1) Ask for all the information needed to meet the research objectives.
2) Only include questions relevant to the study.
3) Avoid questions that could be better answered through other data collection methods like observation.
It should be clear, concise, not ambiguous, avoid open-ended questions unless necessary, be arranged logically, pre-tested and revised to be satisfactory for the particular survey.
Unit 1-tk-ppt
The basic concepts in Income tax such as assesse, assessment year previous year, etc are defined besides discussing the brief history of Income Tax....By...Dr. Thulasi Krishna. K
Corporate tax planning
This document provides an outline for a presentation on corporate tax planning. It discusses key concepts like the types of taxes, direct vs indirect taxes, common tax saving practices like planning vs avoidance vs evasion. It then covers various methods of corporate tax planning such as planning for employee remuneration, amalgamations, tax deductions, and capital structure considerations. Specific strategies are outlined for bonus shares and managing taxes through business and financial decisions. The document also discusses deductions, different sources of income, and computing income tax under the Indian tax code.
Case Studies Power Point
The document provides an example case study on the topic of coffee production and deforestation in the Amazon rainforest. It outlines the problem of thousands of acres of rainforest being burned to grow coffee trees. It then summarizes key points from several websites that were researched on this topic, finding that vast amounts of primary forest have been cleared for coffee cultivation, leading to rampant deforestation and impacts to wildlife habitats and migration routes. Potential solutions discussed include crop rotation, replanting forests, and promoting conservation and shade-grown coffee methods to help reduce environmental impacts.
Capital Budgeting
Capital budgeting refers to the process of evaluating investment projects and determining whether they should be accepted or rejected. There are traditional and discounted cash flow methods for evaluating projects. Traditional methods include payback period and accounting rate of return, which do not consider the time value of money. Discounted cash flow methods like net present value (NPV) and internal rate of return (IRR) discount future cash flows to determine if a project will provide sufficient returns. The capital budgeting process involves project generation, evaluation using techniques like NPV or IRR, and selection of projects that meet acceptance criteria.
Viewers also liked (17)
Unit 2 tk-technology in business research - thulasi krishna
Unit 2 tk-technology in business research - thulasi krishna
Unit 1-introduction-Business Research Methods -Dr. Thulasi Krishna
Unit 1-introduction-Business Research Methods -Dr. Thulasi Krishna
BRM - Dr. TK - Characteristics of a Good Questionnaire
BRM - Dr. TK - Characteristics of a Good Questionnaire
Similar to Unit 5 hirepurchase and Lease
Leasing and hire purchase
This document discusses leasing and hire purchase. It defines leasing as a contract where the owner of an asset grants another party exclusive use of the asset for an agreed period in exchange for rent payments. Hire purchase allows a party to take possession of a good by paying in installments, with ownership transferring after all payments are made. The document outlines the key features, types, advantages and disadvantages of both leasing and hire purchase agreements.
Mfis unit 4
The document discusses hire purchase and leasing. It defines hire purchase as hiring an asset for a period of time and then purchasing it, with the purchase price paid over installments. Leasing involves renting an asset from the owner (lessor) for a period of time. There are typically three parties in a hire purchase - the seller, financier, and buyer/hirer. Leasing can be operating or financial, with financial leases transferring most ownership risks to the lessee. The document outlines the rights and obligations of the parties in hire purchase and leasing agreements.
Final leasin & hire purchase ppt
- Leasing is a commercial arrangement where an equipment owner conveys the right to use equipment to a user (lessee) in return for rental payments. There are different types of lease agreements such as financial leases, operating leases, sale and lease back, leveraged leasing, direct leasing, sub-leasing, and wet/dry leasing.
- Financial leases involve the transfer of risks and benefits of asset ownership to the lessee, who has the option to purchase the asset at the end of the lease. Operating leases give limited use rights and the asset remains with the lessor.
- Leasing provides advantages like saving capital, flexibility, tax benefits, and improved liquidity
Leasing and hire purchase are both financial arrangements.
Leasing and hire purchase are both financial arrangements for acquiring assets. Leasing involves renting an asset for a specified period, while hire purchase allows the buyer to use the asset during the payment period with ownership transferring after the final installment.
Hire purchase
The document discusses the concept of hire purchase, which is a mode of financing where goods are leased on hire with the option for the lessee to purchase them by paying installments. Key points include: hire purchase involves periodic installment payments, immediate possession of goods by the buyer but ownership remaining with the seller until final payment; features like being based on a written agreement and ownership transferring after final payment; and rights and obligations of both the hirer and hire vendor. Differences between leasing and hire purchase are also outlined.
Lease financing
This ppt is covering lease finance in detail, covering advantages & disadvantages. Types of lease. Instead of doing hard work rely on smart work. Time you devote on copy pasting. Channelize that time in understanding topic via reading it.
Leasing & Hire purchase
it contains meaning, features, and difference between financial lease and hire purchase and types of financial lease and hire purchase
Leasing, hire purchases and installment purchase
Its all about, why Leasing, HP, Installment credit their merit, demerits, comparision etc from a buyer's perspective
Financial services1
This document provides an overview of various asset and fund-based financial services. It discusses topics like lease finance, consumer credit, factoring, bills discounting, and housing finance. For lease finance, it defines different types of leases and outlines the steps involved in a leasing transaction. It also covers hire purchase agreements and compares leasing to hire purchase. The document then discusses factoring, defining it and outlining the key functions performed by factoring companies. It concludes with a brief discussion of bills discounting.
Leasing
The document discusses leasing as an alternative to owning assets. It defines key terms like lessor, lessee, operating lease and financial lease. An operating lease is short-term while a financial lease allows the lessee to purchase the asset at the end. Leasing provides benefits to both lessors and lessees like saving capital upfront, flexibility, tax benefits, and improved cash flows. Lease evaluation involves determining costs and returns for both parties.
what-is-the-difference-between-hire-purchase-and-leasing.docx
Hire purchase and leasing are two different ways of acquiring assets, such as a car or equipment, without paying the total purchase
price.
Leasing 130119075852-phpapp01
This document provides an overview of leasing, including definitions, characteristics, types of leases, and the regulatory framework. It defines a lease as an agreement where the lessor conveys the right to use an asset to the lessee in return for rent. There are two main types of leases: financial leases, where the lessee assumes most of the risks and benefits of ownership, and operating leases, which are usually shorter term. The document also outlines the legal rights and obligations of lessors and lessees under contract law and discusses key components of lease agreements.
Leasing
This document defines leasing and summarizes the key elements of a lease agreement. It also classifies the main types of leases as follows:
1) Finance leases transfer substantially all risks and rewards of ownership to the lessee. The lease payments cover the asset's cost and provide a return for the lessor.
2) Operating leases do not transfer all ownership risks and rewards. The lease period is shorter than the asset's life and rentals do not cover its full cost.
3) Sales and lease backs involve an owner selling an asset to a lessor and then leasing it back.
4) Direct leases are between the lessee and lessor, while tripart
HP FINANCING.pptx
This document provides an overview of hire purchase financing. Key points include:
- Hire purchase allows a buyer to make a down payment on a good and pay the balance plus interest in installments, with ownership transferring once fully paid.
- The finance company retains ownership until final payment is made and can repossess the good if payments are defaulted on.
- A hire purchase agreement must be in writing and specify details of the good, price, installments, and transfer of ownership upon final payment.
Leasing IAS-17
The document defines key terms related to leases, including lessor, lessee, operating lease, and finance lease. It distinguishes between operating and finance leases and provides criteria for each. It also discusses minimum lease payments, contingent rent, fair value, economic life, and sale-leaseback transactions. Recording of leases is discussed for both lessees and lessors depending on if the lease is an operating or finance lease.
Leasing
The document discusses different types of lease financing arrangements including financing leases, operating leases, sale and leaseback, direct leases, domestic leases, international leases, single investor leases, and leveraged leases. A lease is a legal contract where one party agrees to rent property from another party for a specified period of time in exchange for regular payments. The key parties involved in a lease typically include the lessor who owns the asset, the lessee who uses the asset, and sometimes a lease broker or lender.
Financial management
Leasing is a process where a firm can obtain use of a fixed asset by making a series of tax deductible payments over time. A lease is a contractual agreement where the owner (lessor) provides an asset to a user (lessee) for a period of time in exchange for periodic rental payments. There are two main types of leases: a finance lease, where ownership essentially transfers to the lessee, and an operating lease, where the lease term is shorter than the asset's economic life and the lessee can terminate with limited penalties. Leasing arrangements can also take different forms like a sale and leaseback, single investor lease, or leveraged lease.
leasing
This document discusses lease financing and hire purchase. It defines lease financing as giving another person the right to use an asset for periodic payments, with ownership remaining with the lessor. It describes different types of leases, including financial leases, operating leases, and sale-leasebacks. The leasing process and advantages/disadvantages of leasing are also summarized. Hire purchase is defined as financing an asset purchase through installment payments, with ownership transferring after the final payment.
Similar to Unit 5 hirepurchase and Lease (20)
11. Lease Finance.ppt leasing finance topics in presentation
11. Lease Finance.ppt leasing finance topics in presentation
Leasing and hire purchase are both financial arrangements.
Leasing and hire purchase are both financial arrangements.
Leasing & Hire Purchase.pptx leasing hire purchase
Leasing & Hire Purchase.pptx leasing hire purchase
what-is-the-difference-between-hire-purchase-and-leasing.docx
what-is-the-difference-between-hire-purchase-and-leasing.docx
More from Madanapalle Institute of Technology & Science
Unit 8- Sources of Business Finance-1 - Inter - Commerce
Unit 8- Sources of Business Finance-1 - Inter - CommerceMadanapalle Institute of Technology & Science
Inter - I Year - Commerce - Sources of Business Finance - Meaning - Nature - Significance - Classification of sources of funds - Factors determining the choice of sources of financeUnit 7-MOA - AOA - Prospectus - Inter - Commerce
Inter - I Year - Commerce - Formation of a company - Important documents - Memorandum of Association - Its Clauses - Articles of Association - Contents - Prospectus
Unit 7- Company Incorporation- Inter - Commerce
Inter - I Year - Commerce - Unit 7 - Incorporation of a Company - Meaning of Formation of a Company - Stages in the formation of a company
Unit 4-JHF-Inter-I Year-Commerce - Joint Hindu Famliy Business
Unit 4-JHF-Inter-I Year-Commerce - Joint Hindu Famliy BusinessMadanapalle Institute of Technology & Science
Inter-I Year-Commerce - Joint Hindu Family Business - Features -Advantages -Disadvantages - Mitakshara Law and Dayabhaga LawUnit 3-Forms of BO-Inter-Commerce
Inter-I Year-Commerce-Forms of Business Organization - Sole Proprietorship-Features-Merits and Limitations
Unit 3-business services
The document provides information on various business services in India including top banks, insurance companies, and logistics companies. It discusses the meaning and functions of banking, insurance, and different types of insurance policies like life and fire insurance. It explains the key principles of insurance including insurable interest, utmost good faith, indemnity, and subrogation. It also outlines the advantages and costs of insurance as well as the characteristics of marine and fire insurance.
Unit 2-business activities
Business Activities - Industry Meaning - Types of Industries - Commerce - Meaning and Importance of Commerce
Unit 1-concept of business
Definition of Business, Characteristics or Features and Objectives of Business - PPT for Junior Intermediate - Commerce - Andhra Pradesh State in India
Dr.TK-Business Research Methods -Data Analysis
Sources of Data-Primary Sources of Data & Secondary Sources - Data collection methods - Collection Methods-
Interviews: Structured Interviews and Unstructured Interviews etc
R18 unit-1-tk-part-1-technologies in research
The document discusses various technologies used for business research including the internet, email, World Wide Web, data analysis software, computer-aided design and manufacturing software, enterprise resource planning systems, videoconferencing, and data warehousing. It provides examples of how these technologies can help businesses obtain information, communicate, design products, track resources, and analyze data to support decision-making.
Rural immersion dr.tk-ppt-2
This document discusses rural development and related issues. It defines rural development as a process aimed at improving the well-being and livelihoods of rural communities through collective efforts. The objectives of rural development include improving farm productivity, health, education, and village infrastructure. Some key problems in rural development are people's traditional mindsets, lack of education, insufficient infrastructure like water and electricity, economic challenges like high input costs, and administrative issues like political interference.
Rural immersion tk-ppt
This document discusses rural areas in India based on 2011 census data. Some key points:
- Approximately 70% of Indians, or 83.3 crore people, live in rural areas according to the 2011 census.
- The proportion of rural population declined from 72.19% in 2001 to 68.84% in 2011 as urbanization increased.
- Uttar Pradesh has the highest rural population at 15.5 crore people while Mumbai has the highest urban population at 5 crore people.
- Rural areas are defined as places with a population less than 5,000, density less than 400/sq km, and over 25% of males working in agriculture. Agriculture is the main livelihood
Dr.tk gst-ppt
This document provides an overview of the Goods and Services Tax (GST) implemented in India in 2017. It discusses the history and objectives of GST, how it replaces previous indirect tax frameworks, applicable tax rates for goods and services, the registration process, and comparisons of taxes before and after GST. The impact on consumers is also addressed, noting some items may see reduced prices while the overall effect on monthly expenses depends on spending habits. Some challenges remain in fully implementing the new indirect tax system across India.
Unit 3 Dr.TK- research design
Research Design -Definitions -Features - Steps in Planning Research Design - Types of Research Design - Exploratory, Descriptive, and Causal Research Designs
Accounting introduction ppt
Introduction to Accounting....BY Dr. THULASI KRISHNA. K, Dept. of Management Studies, MITS, Madanapalle, A.P., INDIA
Unit 1-accounting introduction-ppt
This document discusses the history and purpose of accounting. It notes that accounting originated in India thousands of years ago as described in the book "Arthashastra," and the modern double-entry system was first published by Luca Pacioli in 1494. The document defines accounting as recording, classifying, and summarizing financial information and transactions to facilitate decision making about a business. It outlines the objectives of accounting as maintaining records, meeting legal requirements, protecting assets, facilitating decisions, and communicating results to stakeholders.
More from Madanapalle Institute of Technology & Science (16)
Unit 8- Sources of Business Finance-1 - Inter - Commerce
Unit 8- Sources of Business Finance-1 - Inter - Commerce
Unit 4-JHF-Inter-I Year-Commerce - Joint Hindu Famliy Business
Unit 4-JHF-Inter-I Year-Commerce - Joint Hindu Famliy Business
Recently uploaded
বাংলাদেশ অর্থনৈতিক সমীক্ষা (Economic Review) ২০২৪ UJS App.pdf
বাংলাদেশের অর্থনৈতিক সমীক্ষা ২০২৪ [Bangladesh Economic Review 2024 Bangla.pdf] কম্পিউটার , ট্যাব ও স্মার্ট ফোন ভার্সন সহ সম্পূর্ণ বাংলা ই-বুক বা pdf বই " সুচিপত্র ...বুকমার্ক মেনু 🔖 ও হাইপার লিংক মেনু 📝👆 যুক্ত ..
আমাদের সবার জন্য খুব খুব গুরুত্বপূর্ণ একটি বই ..বিসিএস, ব্যাংক, ইউনিভার্সিটি ভর্তি ও যে কোন প্রতিযোগিতা মূলক পরীক্ষার জন্য এর খুব ইম্পরট্যান্ট একটি বিষয় ...তাছাড়া বাংলাদেশের সাম্প্রতিক যে কোন ডাটা বা তথ্য এই বইতে পাবেন ...
তাই একজন নাগরিক হিসাবে এই তথ্য গুলো আপনার জানা প্রয়োজন ...।
বিসিএস ও ব্যাংক এর লিখিত পরীক্ষা ...+এছাড়া মাধ্যমিক ও উচ্চমাধ্যমিকের স্টুডেন্টদের জন্য অনেক কাজে আসবে ...
CACJapan - GROUP Presentation 1- Wk 4.pdf
Macroeconomics- Movie Location
This will be used as part of your Personal Professional Portfolio once graded.
Objective:
Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
Thesis Statement for students diagnonsed withADHD.ppt
Presentation required for the master in Education.
South African Journal of Science: Writing with integrity workshop (2024)
South African Journal of Science: Writing with integrity workshop (2024)Academy of Science of South Africa
A workshop hosted by the South African Journal of Science aimed at postgraduate students and early career researchers with little or no experience in writing and publishing journal articles.RPMS TEMPLATE FOR SCHOOL YEAR 2023-2024 FOR TEACHER 1 TO TEACHER 3
RPMS Template 2023-2024 by: Irene S. Rueco
The History of Stoke Newington Street Names
Presented at the Stoke Newington Literary Festival on 9th June 2024
www.StokeNewingtonHistory.com
PCOS corelations and management through Ayurveda.
This presentation includes basic of PCOS their pathology and treatment and also Ayurveda correlation of PCOS and Ayurvedic line of treatment mentioned in classics.
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...
Letter from the Congress of the United States regarding Anti-Semitism sent June 3rd to MIT President Sally Kornbluth, MIT Corp Chair, Mark Gorenberg
Dear Dr. Kornbluth and Mr. Gorenberg,
The US House of Representatives is deeply concerned by ongoing and pervasive acts of antisemitic
harassment and intimidation at the Massachusetts Institute of Technology (MIT). Failing to act decisively to ensure a safe learning environment for all students would be a grave dereliction of your responsibilities as President of MIT and Chair of the MIT Corporation.
This Congress will not stand idly by and allow an environment hostile to Jewish students to persist. The House believes that your institution is in violation of Title VI of the Civil Rights Act, and the inability or
unwillingness to rectify this violation through action requires accountability.
Postsecondary education is a unique opportunity for students to learn and have their ideas and beliefs challenged. However, universities receiving hundreds of millions of federal funds annually have denied
students that opportunity and have been hijacked to become venues for the promotion of terrorism, antisemitic harassment and intimidation, unlawful encampments, and in some cases, assaults and riots.
The House of Representatives will not countenance the use of federal funds to indoctrinate students into hateful, antisemitic, anti-American supporters of terrorism. Investigations into campus antisemitism by the Committee on Education and the Workforce and the Committee on Ways and Means have been expanded into a Congress-wide probe across all relevant jurisdictions to address this national crisis. The undersigned Committees will conduct oversight into the use of federal funds at MIT and its learning environment under authorities granted to each Committee.
• The Committee on Education and the Workforce has been investigating your institution since December 7, 2023. The Committee has broad jurisdiction over postsecondary education, including its compliance with Title VI of the Civil Rights Act, campus safety concerns over disruptions to the learning environment, and the awarding of federal student aid under the Higher Education Act.
• The Committee on Oversight and Accountability is investigating the sources of funding and other support flowing to groups espousing pro-Hamas propaganda and engaged in antisemitic harassment and intimidation of students. The Committee on Oversight and Accountability is the principal oversight committee of the US House of Representatives and has broad authority to investigate “any matter” at “any time” under House Rule X.
• The Committee on Ways and Means has been investigating several universities since November 15, 2023, when the Committee held a hearing entitled From Ivory Towers to Dark Corners: Investigating the Nexus Between Antisemitism, Tax-Exempt Universities, and Terror Financing. The Committee followed the hearing with letters to those institutions on January 10, 202
DRUGS AND ITS classification slide share
Any substance (other than food) that is used to prevent, diagnose, treat, or relieve symptoms of a
disease or abnormal condition
Main Java[All of the Base Concepts}.docx
This is part 1 of my Java Learning Journey. This Contains Custom methods, classes, constructors, packages, multithreading , try- catch block, finally block and more.
A Survey of Techniques for Maximizing LLM Performance.pptx
A Survey of Techniques for Maximizing LLM Performance
Advanced Java[Extra Concepts, Not Difficult].docx
This is part 2 of my Java Learning Journey. This contains Hashing, ArrayList, LinkedList, Date and Time Classes, Calendar Class and more.
How to Build a Module in Odoo 17 Using the Scaffold Method
Odoo provides an option for creating a module by using a single line command. By using this command the user can make a whole structure of a module. It is very easy for a beginner to make a module. There is no need to make each file manually. This slide will show how to create a module using the scaffold method.
Recently uploaded (20)
বাংলাদেশ অর্থনৈতিক সমীক্ষা (Economic Review) ২০২৪ UJS App.pdf
বাংলাদেশ অর্থনৈতিক সমীক্ষা (Economic Review) ২০২৪ UJS App.pdf
Thesis Statement for students diagnonsed withADHD.ppt
Thesis Statement for students diagnonsed withADHD.ppt
South African Journal of Science: Writing with integrity workshop (2024)
South African Journal of Science: Writing with integrity workshop (2024)
RPMS TEMPLATE FOR SCHOOL YEAR 2023-2024 FOR TEACHER 1 TO TEACHER 3
RPMS TEMPLATE FOR SCHOOL YEAR 2023-2024 FOR TEACHER 1 TO TEACHER 3
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...
A Survey of Techniques for Maximizing LLM Performance.pptx
A Survey of Techniques for Maximizing LLM Performance.pptx
Pride Month Slides 2024 David Douglas School District
Pride Month Slides 2024 David Douglas School District
Liberal Approach to the Study of Indian Politics.pdf
Liberal Approach to the Study of Indian Politics.pdf
How to Build a Module in Odoo 17 Using the Scaffold Method
How to Build a Module in Odoo 17 Using the Scaffold Method
Unit 5 hirepurchase and Lease
- 1. UNIT 5 FINANCIAL SERVICES Hire Purchase Dr. Thulasi Krishna. K
- 2. DEFINITION Hire purchase is a method of financing of the fixed asset to be purchased on future date. Under this method of financing, the purchase price is paid in installments. Ownership of the asset is transferred after the payment of the last installment.
- 3. FEATURES The main features of hire purchase finance are: The hire purchaser becomes the owner of the asset after paying the last installment. Every installment is treated as hire charge for using the asset. Hire purchaser can use the asset right after making the agreement with the hire vendor. The hire vendor has the right to repossess the asset in case of difficulties in obtaining the payment of installment.
- 4. ADVANTAGES Financing of an asset through hire purchase is very easy. Hire purchaser becomes the owner of the asset in future. Hire purchaser gets the benefit of depreciation on asset hired by him/her. Hire purchasers also enjoy the tax benefit on the interest payable by them.
- 5. DISADVANTAGES Ownership of asset is transferred only after the payment of the last installment. The magnitude of funds involved in hire purchase are very small and only small types of assets like office equipment’s, automobiles, etc., are purchased through it. The cost of financing through hire purchase is very high.
- 6. PROCEDURE Hire purchase agreement is required which usually consists of: The hire purchase price of the goods to which the agreement relates; The cash price of the goods, that is to say, the price at which the good is purchased for cash; The date of the commencement of the agreement; The number and time interval of installments by which the hire purchase price is to be paid; The name of goods, with its sufficient identity, to which the hire purchase agreement relates to; The amount to be paid, if any, at the time of signing the agreement (down payment); The signatures of the parties involved in transaction.
- 7. LEASE Lease is a financial contract between the business customer (user) and the equipment supplier (normally owner) for using a particular asset/equipment over a period of time against the periodic payments called “Lease rentals”. The lease generally involves two parties i.e. the lessor (owner) and the lessee (user). Under this arrangement, the lessor transfers the right to use to the lessee in return of the lease rentals agreed upon.
- 8. TYPES OF LEASE i. Finance Lease [all the risks and rewards of ownership of assets are transferred to the lessee for lease rentals] ii. Operating Lease [Risks and rewards are not transferred] iii. Sale And Lease Back Iv. Direct Lease V. Domestic and International Lease