State The Disadvantages Of Hire Purchase System?

1.	State The Disadvantages Of Hire Purchase System?
Answer» OWNERSHIP of asset is TRANSFERRED only after the payment of the last installment. The MAGNITUDE of funds involved in hire purchase are very SMALL and only small types of assets like office EQUIPMENT's, automobiles, etc., are purchased through it. The cost of financing through hire purchase is very high.

Answer»

OWNERSHIP of asset is TRANSFERRED only after the payment of the last installment.
The MAGNITUDE of funds involved in hire purchase are very SMALL and only small types of assets like office EQUIPMENT's, automobiles, etc., are purchased through it.
The cost of financing through hire purchase is very high.

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