my focus is finance of the company. CanGo want to develop new business of online
ID: 2490023 • Letter: M
Question
my focus is finance of the company. CanGo want to develop new business of online gaming from Week 1 & 2 and now they want a new warehouse systems which is expensive too. The profit from new warehouse system will take a while. What if online gaming fails and the company have a big debt? I think Liz and management team must set a priority between online gaming and new warehouse systems.
There is a lot to consider with leasing a warehouse or buying a warehouse.What are different challenges here that would get the attention of an accountant?
Explanation / Answer
The major Challenge is.
If Want to buy warehouse then there is lot of money required in starting,and there is cost for it
If comapny lease insted of buy then starting cost if less, but if there is loss then it will be extra cost in business and it must be pay till end of the lease agreement
In case company buy warehouse and suffer from loss then company can sell warehouse and pay out the loan
All these challenges would get the attention of an accountant.
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