...digital servicing option should be implemented where customers can connect with servicing professionals through mobile applications or video correspondence. Pros: Digital servicing will strengthen the relationship with consumers and build a loyal customer base. Digital servicing would open up the opportunity to service consumers who may not conveniently reside near a retail location; therefore the customer base would increase which enables growth in servicing revenue. Cons: Digital servicing would create a need to increase staffing and technical professionals; which would increase operating expenses. Product Leasing An additional alternative strategy would be offering products through a leasing program. This leasing program would enable Best Buy to offer products for customers to pay monthly leasing fees instead of purchasing outright. This program opens the door to a customer base who may not be able to purchase products outright or may not have access to credit purchasing. Pros: Ability to increase revenue and maintain ownership of the products. Ability to earn ancillary income through the sale of protection plans to cover any damages to products. Ability to sell used products at discounted prices and maximize overall revenue per product. Cons: Increased risks of damages to the products prohibiting continued leasing. Increased risks of customers who skip with product without making payments. Product Training Classes Best Buy has become a trusted resource when it comes...
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...world. If you purchase an item at the wrong time, it could easily put a company as risk for financial hard times. The following will detail some important factors to review when purchasing or leasing is an option. The Differences between Leasing and Purchasing Both leasing and purchasing has its pros and it cons. The trick is to figure out which would be better for a company’s current financial status. Leasing allows a lessee to avoid large down payments, keep updated materials, lower lease payments due to shared tax advantages, and the property that is being leased does not show as an asset or liability. These are all positive factors if your company is a smaller company and does not have the cash to purchase the material or only needs the material for a limited time. Next are a few pros of purchasing through a capital lease. Leasing payments on an operational lease might be higher than those payments on a capital lease due to interest rates and since the company does not own the property, it must not be abused or used to harshly because it will be returned to the lessor. A capital lease gives you tax breaks such as deprecation, while operational leasing does not. As stated above, operational leases (rental agreements) and capital leases (purchasing leases) both have their pros and cons. Again, it is really the current financial status of the company that would determine which method would be best. Financial Status of a Company One of the main questions to review before...
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...Lease Versus Purchase Should your company lease or purchase equipment? The answer to this depends on circumstance. Leasing equipment can be a good option for business owners who have limited capital or who need equipment that must be upgraded every few years, while purchasing equipment can be a better option for established businesses or for equipment that has a long usable life, both areas will be compared for a decision. Purchasing Before making the decision to purchase or lease a business needs to evaluate how the equipment will be used and the useful life of the equipment. Purchasing equipment has both pros and cons depending on the circumstances. Equipment of any kinds has maintenance and repairs over the years. One advantage for this company purchasing the equipment is a lower cost of maintenance. Typically the firm is responsible for all maintenance cost associated with the product, but there is options for extended warranties to cover the cost of repairs that need to be made. (Quickbooks.intuit.com, 2014). The firm is able to enter into a maintenance contract with the manufacture of a flat rate of $5000 a year (Titman, Keown, & Martin, 2014). Because leasing does not include maintenance the cost would grow each year as the equipment ages and becomes more prone to problems. A big disadvantage to purchasing equipment is the interest payments associated with the loan. Over the three years the firm will own the piece of equipment their average interest payment will be...
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...STUDENT NAME: tishanni corpus Clarke Task. 1:1.1 AC identify the sources of finance available to the business. 1. Government grants A grant of monetary help with the type of cash by the government to a qualified grantee with no desire that the trusts will be paid back (staff, 2015) 2. Leasing Is a system that permits people to claim and make utilisation of specific resources for medium to long haul financing periods consequently for beforehand set between time instalments (Ahali.com, 2015) 3. Friends and Relative They may offer advances without security or consent to a more drawn out reimbursement period (Business gateway, 2015) 4. Government program Chosen, state, and neighbourhood governments have programs expected to help the financing of new interests likewise, little associations. The assistance is much of the time in the kind of an organization certification of the repayment of a development from a customary advance master Anon, (2015). [Online] available at: 5. Life insurance Is a way of ensuring your family or your friendship ones in the event that you pass away (you tube, 2012). 6. Personal savings The primary spot business visionaries ought to search for start-up cash is in their own pockets. It is the slightest costly wellspring of stores accessible (13 sources of finance, 2015). 7. Bank loans A development made by a bank to be repaid with eagerness...
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...lease vs. buy for the two projects. When choosing between leasing and buying of equipment, company’s need to consider all options and aspects. The company should consider whether or not the equipment will be a long-term piece or short-term. With the rapid and ever changing advances in technology, the company will need to consider if purchasing equipment that will become obsolete in a couple of years is worth the investment. There is also the price and costs to think of. Management will need to consider whether or not the company can afford, or will want to pay interest rates on equipment or buy the equipment out right. This may be a deciding factor for the company. Also, as previous mentioned the worth of the equipment will change over time, and most likely be worth only a fraction of what the initial purchase price was. Another important factor to remember and review is the mobility or portability of the equipment. In order for a company to not lose any money on its asset there will need to be some form of tracking. This would be especially true in a lease where the equipment is expected to be returned after a set amount of time. In the end, leasing equipment can be more advantageous than buying. With tax breaks and incentives, along with ease of updating to the newest technology, the return received may outweigh the costs. Despite the interest that may be paid when leasing, a company has more flexibility with leasing, and can often take advantage of warranties that old equipment...
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...cost on the balance sheet when certain conditions are met. In this scenario, management needs to make a decision whether or not to buy or lease an asset valued at $200,000. Calculating the present value of the cash outflows and inflows of the asset is imperative to the analysis of the investment. The cash inflows and outflows generated from leasing affects the bottom line differently than purchasing. It is important to determine the asset’s residual value to achieve maximum advantages of either option. Various factors including the company’s tax bracket and cost of the fund directly affected the firm’s decision to lease the asset versus buying it. The present value of the buying cash outflows by far exceeded the leasing cash outflow. Considering the pros of cons of leasing versus buying is an excellent idea for any company to consider. Leasing provided the company the option of upgrading the asset that allows them to remain competitive. Leasing also is less expense up front because of the established payments and eliminated the large lump sum to purchase. The company’s 40% tax bracket is also a plus for leasing because leasing is often 100% tax deductible which creates...
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...below. By using only those creditors I was able to build stellar business credit inside of 4 months. No, you don't need good personal credit to build business credit but it certainly doesn't hurt if you do have good personal credit. Finally, even though it's important to build solid business credit, I strongly recommend that you begin building strong personal credit as well. It's nice to have a double arsenal of both good personal and business credit. When I say "pros" I mean that it is what makes it easier to get business credit from the creditor. When I say "cons" it doesn't necessarily mean that it's a "con" but rather they are extra steps/requirements needed to get the business credit. Here are the resources: 1) Advanta Business Credit Card - www.advanta.com Pros: Outstanding balance does not appear on personal credit reports Cons: Requires good personal credit Requires a personal guarantee 2) American Express - www.americanexpress.com Pros: Outstanding balance does not appear on personal credit reports Cons: Requires good personal credit Requires a personal guarantee www.SecretsToBusinessCredit.com Copyright © 2009 1 RESOURCE DIRECTORY BUSINESS CREDIT RESOURCE DIRECTORY - MONICA MAIN 3)...
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...Piano di Impresa 2011-2013/2015 Solida creazione di valore per tutti gli stakeholders Basilea 3: vantaggio competitivo per Intesa Sanpaolo, da subito Milano, 6 aprile 2011 Disclaimer This document has been prepared by and is the sole responsibility of Intesa Sanpaolo S.p.A. (the “Company”, and together with its subsidiaries, the “Group”) for the sole purpose described herein. This document and the information contained herein does not contain or constitute an offer of securities for sale, or solicitation of an offer to purchase securities, in the United States, Australia, Canada or Japan or any other jurisdiction where such an offer or solicitation would require the approval of local authorities or otherwise be unlawful (the “Other Countries”). Neither this document nor any part of it nor the fact of its distribution may form the basis of, or be relied on in connection with, any contract or investment decision in relation thereto. The securities referred to herein have not been registered and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or pursuant to the corresponding regulations in force in the Other Countries, and may not be offered or sold in the United States or to U.S. persons unless such securities are registered under the Securities Act, or an exemption from the registration requirements of the Securities Act is available. The content of this document has a merely informative and provisional nature...
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...Leasing versus Purchasing Team A FIN 370 October 19, 2015 Ms. Yvonne Downer Leasing versus Purchasing Firms are facing financing decisions on a daily basis such as the length of the obligation they want to incur’. Firms have to decide whether it is short-term of less than a year, long-term for twenty years or more or something in between. Intermediate debt is debt that is between five and ten years in length and is either term loans or a lease on real estate or equipment. A firm will consider many factors in deciding whether to take a loan for the purchase of the asset to be used or to lease the asset. Herbert Mayo lists several variables firms that should be looking at when deciding to buy or to lease “These include the firm’s tax bracket, the terms of the lease, the asset’s anticipated residual value, and the cost of obtaining funds to buy the asset (Pg. 589)”. The firm must also conduct a cost analysis to determine which method will be the most cost effective to the firm by determining the present value of both purchasing and leasing the asset. The firm will purchase the asset if the costs are less than the cost of leasing, and will lease the asset if the costs of leasing are less than the cost of purchasing. The firm must also decide if they what ownership of the asset. (Mayo, H.B., 2012) Leasing or renting, is a contractual obligation between a lessee, the person leasing, and a lessor, which is the owner of the asset being leased. Leasing contracts can...
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...Introduction Comparison Pros and Cons Case Study Conclusion Online conferencing replace traditional communication method Introduction Traditional communication method, history. Online conferencing today Roles in different stage to society, organization, personal and business. Comparison Traditional communication method Online Conferencing product, function, application. Changing to society and organization Online conferencing replace traditional communication method Pro and Cons Analysis pros and cons between traditional communication method and new online conferencing New technology to market Benefits Advantage & disadvantage Case Study Skype Go-to-meeting Conclusion Life behavior changing by new technology New technology and service expecting to market! Introduction Traditional communication method Face to face Tele-audio Simplest way - Telephone, 2 parties only Conference call – One way + multiple parties Three-way calling Tele-video Mobile links to satellites using specially equipped trucks Online conference What is online conference? Online means “Connected to a computer and internet, we called this as “Web Conference” History 1980 Online chat service by CompuServe Early 1980s Electronic Meeting System as university and research projects Late 1980s Ancestor of modern Electronic Meeting System “Group System” at 1989. 1992 Popular online video-conferencing tool CU-SeeMe first...
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...Growth in Sales: Home Depot had a nice track record of growth up until 1985, in which it implemented its most ambitious expansion plan to date. HD added 20 new stores in 8 new markets that fueled top-line sales growth of 62% from $432m in 1985 to $700m in ending 1985. 9 of the new stores were acquired in the purchase of Bowater. Growth in Total Assets: Growth in total assets was fueled by HD expansion plan in opening new markets. The purchase of Bowater's 9 locations in 1984 along with increase PPE to open 11 new storefronts increased inventories heavily. PPE additionally drove up assets beginning in 1984 with the costs associated with real estate transactions. Combined, HD estimated that opening a new store costs $8.4m in asset resources. Change in Net Income: In a letter to shareholders from fiscal 1985, HD commented on their investment in long-term growth and how it impacted short term-results. Up till 1985, HD net income showed strong and steady growth. Fiscal 1985 earnings declined 42.8% from previous record levels. The strongest factor sited for the decline is expansion, which led to more stores which increased COGS, depreciation, personnel expenses, and interest expenses. Growth in Long-Term Debt: HD growth up until 1984 was funded primarily from existing store operations, with a significant source of liquidity since sales are on a cash-and-carry basis. The company has supplemented its operations cash flow with bank credit, equity and debt financing...
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...Sherry Munden BUS 280 YD2 Forms of Business Ownership Sole Proprietorship Pros: The easiest way to start a business, you decide what you want your business to be, buy whatever equipment is needed along with leasing a building and getting permits. If the time were to come that you no longer to be in business, you just simply stop because there is no one else that has a stake in the business. You get to keep the profit that the business earns and if the business does well the profit can increase to your benefit. All the taxes on a sole proprietorship are taxed as personal income of the owner. You have the advantage of being you own boss. Being a business owner is something to be proud of, if the risk pays off all of the credit goes to the owner of the business. You have the ability to leave your business to your heirs without the complications of partners being involved. Cons: When you own your own business you and the business are considered one entity. You have unlimited liability of any debts or damages that may occur, so if you were to be sued you may have to sell personal belongings in order to pay the debt. When you are in business for yourself you may not have as many resources as those in a partnership or corporation. You only know a certain amount of people which can limit the amount of resources available to you. You must commit to long hours as a sole proprietorship owner, not only do you have to make sure that the business is ran property but you...
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...Introduction: Hiram Miller Company was nation’s leading office products supplier with 20 distribution centers, 12 retailers and two paper merchant businesses. The items in the warehouse vary in shape, size and weight in order to manage the merchandise efficiently the company needs to come up with strategies to manage their inventory better as their current warehouses don’t have sufficient space to store all the merchandize efficiently. Their current warehouses are incompetent and have scarce resources such as lower ceilings, fewer docks, few elevators and the warehouses are not well equipped with technology. They have been unable to accommodate 21st century supply chain function due to obsolete warehousing operations and space constraints that could potentially obstruct their future sales growth. Supporting Evidence: The division faced inadequacies in serving $33 million in sales from this warehouse. The main warehouse was built in 1950’s before establishment of trailers and trucks. It had weak ceiling and no mechanized material handling equipment. According to surveys service was the second most important in deciding upon an office supply vendor, defined by most as 24- hour delivery and at least a 90% fill rate. This warehouse was not only facing challenges to meet the present customer needs alone, but also warehouse capacity constraints. Warehouse at Carpenter Street had only two docks, two forklifts and weak floors. It was shedding layers of paint, plaster and...
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...Leasing vs. Buying a Vehicle The great debate to lease or buy a car? Which one of the two options is the smarter or he better choice? The answer to this question is both and neither are the best options. Confusing one may think so, however, the best way to get to the answer is to ask yourself what is important to you. Every person is different with different values and priorities that determine for them whether leasing or buying is the answer. There are people who desire to drive a new vehicle every few years with little or no maintenance costs. Some people have a strong desire to own the vehicle, as opposed to lower upfront costs with no ownership. One of the two of the biggest temptations for many people to lease verses buying are that the monthly costs to lease are cheaper than the monthly payments to buy a car. The other is that they are able to have a new car every 2-3 years, as opposed to the people who purchase. People who purchase generally hold on to the car for an additional 2 years after the last car payment. Let’s review the pros and cons of leasing. The advantages of leasing are it offers lower monthly payment and the ability to drive a new car with all the new bells and whistles every 2-3 years (ehow). There is a tax benefit of paying lower taxes since the individual is paying the taxes on the monthly payments verses the full value of the car. From the two examples so far it appears that leasing is a great situation, and everyone should lease; once...
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...short term lease refers to a lease that has duration of 6months or less. Frequently, they are based on a month-to-month rental agreement. However, it may or may not be renewed at the end of each month. Monthly agreements are often the most common; they are mainly in areas with high demand of rental properties. Also, you can find a short term lease in an area with low supply of rental property as landlords can afford to be more particular about who they choose as tenants. Tenants know that renting for a short term gives them more flexibility to rent without having to pay to break a leasing contract. Some renters prefer shorter-term leases for the flexibility they provide to act on opportunities, including moving for work, family, travel or a better apartment down the street. They prefer month-to-month leases if some are looking for new jobs or even if they have a temporary job. Also, leasing short term gives them more mobility and allows them to consider jobs outside of the commuting zone. If they’ve recently moved to a new city and need time to find the right neighborhood to settle down in, a short-term lease...
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