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Compare and contrast competitive orientation versus cooperative orientation for suppler relations.
Bargain Purchase Option
A lease provision that allows the lessee to purchase the leased property at a price significantly lower than its expected fair market value at the end of the lease term.
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.
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