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Why would an organization choose to sell an asset and then lease it back?
Wiki User
∙ 12y ago
They would sell the asset to provide them with capital.Once the asset is sold they don't have any of the overheads associated with the asset so less costs and also they will increase there capital budget. It is then common to lease the asset back as this retains the asset's usage.
Common example is pubs, brewery's in recent years have sold assets such as a pub to create capital that can be invested elsewhere and then they lease the pub back without any of the overhead costs.its basically a paper excercise to make organisations look more attractive.
Wiki User
∙ 12y ago
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Is Operating leases considered to be a spontaneous source of financing?
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Where could a person find a lease deal on a Buick?
The official website for Buick would be the best way to find a lease deal. They have a variety of different offers and choices you might be able to choose from.
What is a sentence with asset?
My assets are great. It would be an asset to me if you did that.
Are all effective organizations also efficient Discuss If you had to choose between being effective or being efficient although both are needed which one would you select why?
I will choose both because effectivness and efficiency are important to the organization . I will choose the both because efficiency and effectivness are important to the organization.
How would you identify critical asset?
what are the steps in order of how you would identify a critical asset
