Lease Essay Example | Topics and Well Written Essays - 500 words

Lease - Essay Example he FSAB standards, the lease agreement is for the use of the combustion turbine which could qualify as a capital lease because it is an agreement for the use of a piece of property that could be classified as an asset. The first item to be assessed is the legal fees arising in connection with the lease, i.e., $500K to Stipe, Berry, Mills and Buck, together with $1 million in legal fees incurred by Goliath Co. These expenses would fall under the category of external expenses that are not incurred on a sustained basis, but rather are a one-off expense. They do not fall under the category of a recurring expense and moreover, the total value of the payments as mentioned above, is unlikely to add up to a sum that is greater than 90% of the fair value of the leased asset, i.e., the combustion turbine. This expense can however be included in the Balance sheet of the Company as an establishment expense, which would fall under the category of a one-time expense for setting up the lease. The a dvantage of this method is that it could contribute towards the payment of lower taxes to be paid on incomes gained from the leased property during the first year of lease. In regard to the second provision, the lease is a capital lease that would fall under the category of a direct financing lease, because lease payments are being made by a bank and Goliath Company which is leasing out the asset does not gain any share in the profits of Big Bear. The default provision in the lease requires a penalty payment from Big Bear if there is a â€Å"material adverse change† in its financial condition. Although this term is not specifically defined under the agreement, nevertheless the direct inference would be construed as any change in financial circumstances that lead to Big Bear being unable to make its payments. The inclusion of a penalty payment is a fairly standard provision within a lease document, but the instigating factor is a default in the bank’s credit arrangement. This

Stage 2&3 Essay Example | Topics and Well Written Essays - 1750 words

Stage 2 - Essay Example It is from this perspective that adolescent girls become an important subject of discussion due to the fact that adolescent girls have been found to be easily influenced by socialization, social influences, peer pressure, and social acceptability (Koplan, Liverman and Kraak, 2005). In effect, adolescent girls are more likely to make purchases of particularly food and nutrition products not necessarily because of the personal experience or education they have with the food, cosmetic or drug but because of the influences they receive from peers to purchase. It has even been established in research that due to the physical and biological changes that these girls experience at adolescence, they become more concerned about their bodies at teen ages and thus look for every means possible to appear as they find pleasing in their own eyes (Lackey and Kaczynski, 2009). Because of some of the key variables discussed about teen girls on their physical and biological changes and the quest for mo st of them to achieve a perceived perfect body appearance, this group has often become the target group for most advertisers in the food and nutrition industry. Due to the existing delight from the girls themselves, the advertisers often portray their food, cosmetic and drugs to have the potential of making these girls achieve the perfect bodies that they require or desire for themselves. As reflected in the second research question that seeks to answer the question of ways that advertisements influence the perception of girls on food products and services, Hindin, Contento & Gussow (2004) note that food products and services advertisements do not always represent the holistic truth about what they seek to portray. Rather, they target the intuitions of their audience. This way, they only emphasize on things which when audience hear will draw them to making purchase products advertised. This means that the case is not always holistic or true in what the girls are told in advertisemen ts. Where there is lack of holistic presentation of information, the advertisers have been accused of keeping key information on products that has to do with side effects and risk effects of their food, cosmetic and drugs (Luder, Melnik and DiMaio, 2008). Based on the review above, the second research question will be particularly important in answering because it will open the understanding of girls on the purpose for advertisements and the need for more holistic approach to be taken towards the making of purchases rather than basing sorely on what is presented in advertisements. By holistic approach, reference is made to the need not to base decisions on only what is presented on the face of advertisements but also take time to read extensively about advertised products and services from other sources. Once this is done, the aim for the first research question will be achieved because girls are going to be offered more and more options and bases for taking decisions on purchases. Where the accusation is also with false advertisement, the reports have been that what advertisements present is not what the products or services can really offer. In some other cases,