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Lease Financing MBA-IMK

Lease Financing MBA-IMK

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Published by Rahul R G Kurup
lease financing
lease financing

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Published by: Rahul R G Kurup on Feb 25, 2014
Copyright:Attribution Non-commercial

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02/25/2014

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LEASE FINANCING
Dr.R.VasanthagopalUniversity of Kerala
 
Lease
 A lease contract is an agreement where the owner conveys to the user the right to use an asset in return for a number of specified payments over an agreed period of time.
Lessor is the owner of the asset
Lessee is the user of the asset
 
Types of Lease
Operating Leases
Usually not fully amortied. !his means that the payments re"uired under the terms of the lease are not enough to recover the full cost of the asset for the lessor.
Usually re"uire the lessor to maintain and insure the asset.
Lessee en#oys a cancellation option. !his option gives the lessee the right to cancel the lease contract before the e$piration date.

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