An Asset Disposal Plan is pretty much what it sounds like: a business planning out how they will get rid of assets. Disposal of equipment, especially infrastructure equipment used by governments, can be costly, as much as 5% of the life cycle cost of the item. In other words, when you calculate the cost of the item, you have to include getting rid of it too.
For instance, the local road commission deals with some large machines. They have pavers, cement trucks, Caterpillars, those dump trucks that look like a really big version of what kids play with in sandboxes...Disposing of those when they break down or are no longer needed would be costly.
The asset disposal plan outlines how the business will dispose of it, and what it will cost. The plan should also outline what equipment will be used once the current stuff is gone (whether it will be replaced or not). Assets can be sold, demolished on site, or taken elsewhere to be destroyed (like a garbage dump). Regardless of the option chosen, this plan outlines the details of it.
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Finance: What is Bankruptcy?260 Views
Finance a la' Shmoop what is bankruptcy well in the old days
this was bankruptcy you'd go to prison if you couldn't pay your bills and [People in prison for bankruptcy]
unfortunately there weren't and still aren't a lot of legal high wage earning
opportunities in prison working your way out of debt on the chain gang wasn't [Prisoners working outside]
really a thing back then so instead the burden would be on your family to pay
back the loan you'd promised to pay back and didn't ugly situation it paved the [Officer knocking on a prisoners family member to pay their debts]
way for some well today bankruptcy has a range of flavors that it comes in but
basically it exists as a legal vehicle to avoid the aforementioned situation a [Bankruptcy van driving]
bankrupt person and/or corporation stands in front of a judge they turn
their pockets inside out with a sad face and the judge then decide who will be [Person opens their pockets inside out in front of a judge]
paid when and how much well how does she decide the order for who gets paid back
when? well, it usually prioritizes employees and vendors owed a paycheck
above banks who have made a loan and under that umbrella all different types
of loans have different priorities if the bankrupt individual owns a home it's [bankrupt individual in his home on the toilet reading a newspaper]
usually sold out from under him and anything left after paying off the
mortgage is used to pay others even if you do survive a bankruptcy your credit
is pretty much ruined who's going to want to loan you money once you've
proven that you're not good with being loaned money yeah if you've defaulted in [a really low credit score chart for a bankrupt individual]
the past on promises to pay people back why wouldn't you do the same thing again
well remember that twenty dollars you loaned your buddy Eric that he never [Person loaning 20 dollars to friend Eric
paid back well how eager are you going to be to hook him up with another twenty
especially since you'd only be feeding his betting on frog fighting habit yeah [Eric betting money on frog fighting]
not so much so long Eric you'll get the help you need!
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