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Vaibhav
TOPIC QUESTION - PAPER 1
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Vaibhav
September 9, 2025 at 12:19:11 PM
Feb/Mar 2022
Version 2
5.0 Financial Information and Decisions
5.1 Business Finance: Needs and Sources
YOUR ANSWER
An advantage of leasing is that it is cheaper than buying the asset at once. However at one point, the leasing amount may exceed the actual cost of the asset. Another method is hire purchase. The firm can pay the money in installments so more time to regain revenue. Leasing may be better for a small firm since the asset can even be bought whenever the firm wants, however if the firm doesnt pay back the supplier on time for hire purchasing , they may refuse to give discounts or even supply at all.
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