Phatak and Habib Define External Stakeholders As

question 62

Essay

Phatak and Habib define external stakeholders as:

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Definitions:

Executory Costs

Operating expenses associated with a lease, including insurance, maintenance, and taxes, usually assumed by the lessee.

Guaranteed Residual Value

The minimum value guaranteed to the lessor or the lessee regarding the value of an asset at the end of a lease term.

Initial Direct Costs

The expenses directly associated with acquiring or originating a new loan or lease, which may include legal fees, processing fees, and commission payments.

Lease Capitalization

The process of recognizing and recording a lease as an asset and a liability on the balance sheet, reflecting its long-term nature.