gender differential paper IJCRB

ijcrb.webs.com
JUNE 2011
INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS VOL 3, NO 2
with the lessor. The lessee does not obtain title at any time and could also terminate the lease at short
notice without payment of serious penalty. International Accounting Standard 17 regulates the
operations of leasing agreement.
Leasing has great advantages for organizations using the option as outsourcing: a. Leasing is a major
source of finance for companies. The lease saves the company the problem of paying outright for the
purchase, and it is helpful because it is not easy to assemble funds in bulk to purchase an asset
outright especially where it involves a large capital outlay. b. Secondly a company may feel that
considering its level of equity capital, it should finance the next purchase of fixed assets with fixed
interest capital so as to maintain a certain capital structure and consequently enhance a value of the
company. Leasing in this circumstance becomes attractive. c. Leasing helps buoyant and viable
companies to cut down their tax burden as lease payments are tax deductible. It is a tax allowed
expense. d.A company may not have adequate foreign exchange to import an equipment,and may
not have the knowledge and capacity to engage in international trade, hence scarcity of foreign
exchange could make a company lease the necessary asset locally.
Hypotheses
Testing the following hypotheses showed the accuracy of the discoveries of the research and these
are stated in null form below:
1. Ho: High operating costs have no negative impact on profitability and return on capital employed
in the service industry.
2.Ho: Ineffective utilization of resources has no impact on sub-optimality in production in the
service industry.
3.Ho: Outsourcing has no positive relationship with competitive advantage in the service industry.
Literature Review
Overcoming the Challenges facing facility management operators in Nigeria to profit from
hidden opportunities
Alaofin (2003) stated that Nigeria is a medium sized economy that remains largely driven by
government, the oil and gas sector and commercial activities. The only other sector performing is
services especially international trade, i.e.imports of goods and services, banking and insurances.
The structure of incentives in the economy is presently against manufacturing.He buttressed his
argument with Table 1 below about the percentage contribution of sectors to Nigerian economy
Table 1: Relative sizes of major sectors of the Nigerian economy.
Sector
Percentage Contribution
Agriculture 36.5
Oil and Gas/Mining 27.0
Manufacturing 4.0
Wholesale and Retail Trade 15.3
Services 17.2
Real Estate and Housing 4.0
Financial Services 1.0
Comunication 4.0
Other services 8.2
Total 100
Source: Central Bank of Nigeria, Annual Reports,(2001/2002)
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