10.14 Sale of redundant assets

Question 1

What are the advantages of sale of redundant assets?

Answer 1

• raises finance from an asset that is no longer required

- no interest charges or dilution of control associated with debt or equity financing

Question 2

What are the disadvantages of sale of redundant assets?

Answer 2

• businesses do not always have surplus assets for sale
• selling off redundant assets can only be done once, then other methods of financing must be identified
• may not be easy to find a buyer