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andrew-mc [135]
3 years ago
7

Petro Roos is thinking of purchasing the business premises rather than renting it. Provide Two separate advantages and two separ

ate disadvantages of this option. Note: the business has no financial investments. Any TWO separate advantages Any TWO separate disadvantages​
Business
1 answer:
lilavasa [31]3 years ago
4 0

Answer:

Advantages of buying business premises

There are considerable advantages to securing a mortgage to buy business premises, including:

  1. your mortgage repayment is likely to be similar to or less than a rental payment on the same property
  2. with a fixed rate mortgage, your monthly repayments will be predictable
  3. you aren't exposed to any sudden, large rent increases
  4. you may be able to sublet any free space, reducing your monthly repayments (you may require permission from your lender to do so) and allowing you to generate extra income
  5. interest payments on a commercial mortgage are tax-deductible
  6. any gain in value of the property will increase your capital
  7. as your business grows, you may be able to extend your existing premises, avoiding relocation costs
  8. you have control over what alterations you want to make to your office space

Disadvantages of buying business premises

The disadvantages of buying business premises include the following:

  1. Unlike renting, you'll need to come up with a substantial mortgage deposit - this is money that might be used for more important business purposes.
  2. If you own premises, you may find it harder to relocate your business, because selling business premises is a complex and sometimes lengthy process. If you rent, you may be able to negotiate to end your rental agreement, or to find another organisation to take over your tenancy at short-notice.
  3. If you have a variable rate mortgage, you are exposed to increases in interest rates.
  4. Owning a property means you'll be responsible for factors such as maintenance, fixtures and fittings, insurance, decoration and security, which can prove expensive.
  5. Repaying a commercial mortgage
  6. Commercial mortgage fees and costs
  7. Book traversal links for Advantages and disadvantages of buying business premises

Explanation:

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Answer:

True

Explanation:

In simple words, the hospitality and tourism industry refers to the activities related to accommodation, restaurant and tourism etc. In such industries the main focus of the companies is the comfort and joy of their clients. This becomes difficult to implement as every individual have different needs and circumstances. Thus, the planning of activities should be made in such a way that it suited the global audience.

8 0
3 years ago
Stock Z is trading at $50 today. In one year, the value will go either up to $62.50 or down to $40. A call option on Z with exac
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Answer:

0.33

Explanation:

Delta = (Cu – Cd)/(Su – Sd)Cu

= 62.50 – 55 = 7.50

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5 0
3 years ago
Elsa participates in an investigation into possible violations of the Civil Rights Act of 1964 at Fabrication Foundry, Inc., whe
Sedbober [7]

Answer:

The correct answer is letter "D": disparate-impact discrimination claim.

Explanation:

A disparate-impact discrimination claim is one filed because there is a presumed act of unintentional discrimination at work. This could be the result of requesting employees with certain abilities which disfavors a sector of the workforce of the firm. The company has to prove the feature requested for the job position is necessary for the regular development of the activities if such position.

3 0
3 years ago
Multinational enterprises (MNEs) have an impact far beyond their firm boundaries. Assume you are working for a small firm that s
In-s [12.5K]

Answer:

Multinational enterprises (MNEs)

Relationship Change as the MNE moves from Globalization 2.0 to Globalization 3.0 operations:

This move means that Indian and Chinese companies would be competing with my local small firm.  The MNE may be looking for cheaper prices for my company's products and services, which the Indian and Chinese companies would more efficiently supply it.  My firm may be on the precipice of liquidating if this MNE is our major customer.  My firm must move fast to become more competitive by differentiating our products and services with better quality and perhaps reduced production costs, to enable it compete more favorably with the Indian and Chinese competitors.  Otherwise, we may regard the relationship as nearing its end and prepare for other opportunities with other companies.

Explanation:

Globalization reduces national boundaries by integrating national economies into a globalized economy, thus enabling companies to compete globally for financial resources, goods, and services.  When Globalization 1.0 happened, countries were globalized and the world became a global village.  When Globalization 2.0 from which the G7 profited largely, companies were globalized.  With the current Globalization 3.0, individuals are being globalized, and the highest beneficiaries are Indian and Chinese nationals who appear better prepared to take on the world, garner most of the important resources to themselves, and call the shots from the boardrooms.  An example is Microsoft's current CEO, Satya Nadella, who is an Indian-American.

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3 years ago
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Afina-wow [57]

True, usually the earlier you invest the more money you will get later down the road.  

7 0
3 years ago
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