Management you need to understand when and why it may

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Unformatted text preview: understand when and why it may make better sense to lease assets than to purchase them. You need to understand how convertible securities and stock purchase warrants work in order to decide when using such Operations: You need to understand leasing, and what maintenance obligations the firm will have for a leased asset, because the firm may choose to obtain operating equipment by this means. 672 SEBAGO BREWING COMPANY “I’LL HAVE A LEASE, PLEASE” hen restaurateurs Kai Adams, Brad Monarch, and Timothy Haines opened their Sebago Brewing Company restaurant and brewery in South Portland, Maine, they chose to lease several big-ticket items. After leasing a $30,000 point-of-sale computer system and a $4,000 dishwasher for their first restaurant, they continued to lease equipment as they expanded to other locations. “Now is a good time to be doing that,” Adams says. “We don’t have to buy all this equipment, so it frees up some cash for us.” In addition to preserving cash, Adams and his partners like being able to leave maintenance to the lessor that owns the equipment. Man...
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This document was uploaded on 01/19/2014.

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