In twelve pages a consideration of whether to rent or purchase a computer system is examined in terms of a cost benefit analysis. Thirteen sources are listed in the bibliography.
Name of Research Paper File: TS14_TElease2.rtf
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been increased complication that have aided many businesses, but still complicated the situation. The ability to lease can be seen as a real alterative to the purchases of equipment,
especially when it comes items such as IT equipment, where the residual value of the technology is very little after only a few years of use. Leasing is seen as
way of increasing the flexibility of a limited budget whilst still retaining the resources that are required. The culture has been changing, the acceptance and acceptability of leases
has been increasing over the last few decades. There are disadvantages, as the company do not have the asset and as such they operation a much lower asset basis, but
this des help with aspects such as return on assets. However, there are some areas of the commercial environment that are still slow to change the way they operate and
adopt. This has included municipalities and state governments, where there has been a strong tradition of having the ownership of the goods that are used in the everyday operations. This
has been associated with the higher levels of control, and lack of reliance on external contractors (Robinson, 1998). However, in an age of limited resources and a need to maximise
the resources that are available leasing can also be seen as providing some benefits. If we consider the traditional situation of buying a computer, and the risks that are involved,
many of these can be eliminated or reduced by the use of leasing. In this respect the government is in the same position as any other business (Robinson, 1998). However,
the concern over public accountability regarding the way that tax payers one is spent may be seen as a factor that is also off putting when it comes to this