Financial Lease: Form # 1. Sale and Leaseback: A sale and leaseback arrangement involves the sale of an asset already owned by a firm (vendor) and leasing of the same asset back to the vendor from the buyer. This form of lease arrangement enables a firm to receive cash from the sale of asset and also retain […]
1. Capital Lease: This is also called ‘financial lease’. A capital lease is a long-term arrangement which is non-cancelable. The lessee is obligated to pay lease rent till the expiry of lease period. The period of lease agreement generally corresponds to the useful life of the asset concern. A long-term lease in which the […]
Thinking about financial risk tends to induce tunnel vision, especially in the wake of a market downturn or when you fear market uncertainty. However, risk, danger and opportunity are closely aligned aspects of uncertainty, and you need to consider each aspect as you make investment decisions: Danger is one-sided uncertainty. Danger produces only bad surprises, and […]