6 Written Questions
6 Multiple Choice Questions
- Property appreciation is an advantage of investing in real estate.
- The cost that would result in a business's (or building's) having the same use and capabilities as the one being appraised, even though the new business/building might differ physically.
- The amount required to duplicate exactly the business or building being appraised.
- The use of borrowed funds to finance the purchase of an asset.
- The value of an established business property compared with the value of just the physical assets of a business that is not yet established.
- Risk that can be transferred to an insurer such as the risk of vandalism, fire, and so forth.
6 True/False Questions
investment → Money that is invested with an expectation of profit.
income statement → The income statement is a concise summary of all income and expenses of a business for a stated period of time.
investment value → Money that is invested with an expectation of profit.
cash flow → Anything of value.
dynamic risk → A risk that arises from the ontinual change in the business environment and therefore dynamic risk cannot be transfered to an insurer.
goodwill → Current market value minus mortgage debt equals equity.