The Problem of Expected Returns and Other Risks Associated With Installment Sales in an Uncertain Environment
Author: Richard Alltizer.; Jeffrey Bryant.
Source: Volume 25, Number 02, Winter 2008 , pp.3-17(15)
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Abstract:
Installment sales are frequently considered as an option for the disposition of business, investment, and personal-use property. Often, given financing alternatives, it is the only approach available to close a deal. However, while installment sales may help sellers dispose of property, they involve risk. An installment sale where a seller “carries” the buyer has the potential for unexpected outcomes. Moreover, the risks can increase when exogenous factors are especially volatile. Arguably, we are experiencing or are about to experience such a volatile time with regard to several important factors.Keywords:
Affiliations:
1: University of Central Oklahoma; 2: Wichita State University.