Selling assets

• Business can sell some assets such as machinery and factories
• mainly appropriate for business with spare assets so not really suitable for new business
• Advantages- business don’t need to pay interest on money they raise by selling their assets which makes it cheap
• Advantages is that selling assets in larger businesses which has a portfolio of products imoroved efficiency and increases capacity utilisation
• disadvantages- when sold they no longer own the assets and it can also take a long time to sell the assets and get cash