Date of Graduation

5-2020

Document Type

Thesis

Degree Name

Bachelor of Science in Business Administration

Degree Level

Undergraduate

Department

Finance

Advisor/Mentor

Peters, Gary

Committee Member/Reader

Shipman, Jonathan

Abstract

Businesses are continually faced with many difficult decisions to make daily that can have a significant impact on their success. Whether it is if they should adopt a new accounting practice, work with a new supplier, or push into a new consumer sector, these decisions will affect their operations and long-term plans. One of these major decisions that a business has to make is whether they should own or lease their real estate. Depending on the size, type, and scope of a business this decision could be made differently but for certain companies there is definitely a correct answer. Buying and leasing each have their benefits and disadvantages so it is important for an owner to know how each cRXOd affecW WheLU bXVLQeVV. ThLV decLVLRQ ZLOO XOWLPaWeO\ affecW a bXVLQeVV¶V fLQaQcLaO aOORcaWLRQ, time management, daily operations, and overall profit. That is why it is so important for it to be taken seriously and to genuinely put in the time to research how owning or leasing will fair with your company. This thesis is going to approach this question through a case study performed over a local aXWRPRWLYe VeUYLce SURYLdeU¶V bXVLQeVV. They currently own the operations of their business while they are paying for a lease on the land, building, and furniture, fixtures & equipment (FF&E).

Keywords

Real Estate; Finance; Accounting; Lease; Disposition

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