Question 1 a) Several analytical models are available to assist the lessor in determining what lease payment to charge. Other models are available to assist the lessee in determining which is the less expensive source of financing assets acquisition between leasing and borrowing. You are required to: i. Define an operating lease. (2 marks) ii. State ONE advantage and TWO disadvantages of using debt finance (3 Marks) iii. State FIVE limiting factors in debt financing (5 Marks) iv. Explain the term "concerned gearing" (2 Marks) b) Richard Limited currently has a sales volume of 125,000 units with a total fixed cost of 900,000. Selling price per unit is 20 while the variable cost per unit is 12. You are required to: i. Calculate the degree of operating leverage at 125,000 units (3 Marks) c) What are the characteristics of decision-making in an organisation. (5 Marks) d) All possible outcomes associated with risks may not always be known with certainty or the likelihood of them occurring. Briefly explain these types of risk (5 Marks) e) An organisation depending on it's type of business sometimes faced with the problem of resource constraint. Briefly enumerate resources that might be scarce and thus lead to constraints for an organisation. (5 Marks) (Total Marks 30)