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Why is it important to identify internal strengths and weaknesses?
Capital Lease
A lease agreement that is classified as a purchase by the lessee for accounting purposes, effectively treating the leased asset as owned property.
Executory Costs
Costs related to the unperformed obligations under a lease, typically including insurance, maintenance, and taxes.
Minimum Lease Payments
The lowest amount that a lessee is obligated to pay over the lease term for the right to use an asset.
Rental Payments
Periodic payments made by a lessee to a lessor for the use of a property, vehicle, or equipment.
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