9 IT FINANCING AND LEASING
OBJECTIVES
When you have studied this chapter you should be able to:
- distinguish between ‘financing’ and ‘leasing’;
- explain what a lease is and state what, in IT terms, can be leased;
- list the sources of IT leasing
- define a finance lease and describe its main characteristics;
- define an operating lease and describe its main characteristics;
- explain what is meant by ‘residual value’;
- explain, concerning each kind of lease, who owns the asset and whose books it appears on;
- describe some of the possible variations on the leasing theme.
It is recognised that the methods of financing described in this chapter are not universally applicable. Where they are applicable there may be differences of detail between countries. ...
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