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of 18 available terms

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6 Written Questions

6 Multiple Choice Questions

  1. Property appreciation is an advantage of investing in real estate.
  2. 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.
  3. The amount required to duplicate exactly the business or building being appraised.
  4. The use of borrowed funds to finance the purchase of an asset.
  5. The value of an established business property compared with the value of just the physical assets of a business that is not yet established.
  6. Risk that can be transferred to an insurer such as the risk of vandalism, fire, and so forth.

6 True/False Questions

  1. investmentMoney that is invested with an expectation of profit.


  2. income statementThe income statement is a concise summary of all income and expenses of a business for a stated period of time.


  3. investment valueMoney that is invested with an expectation of profit.


  4. cash flowAnything of value.


  5. dynamic riskA risk that arises from the ontinual change in the business environment and therefore dynamic risk cannot be transfered to an insurer.


  6. goodwillCurrent market value minus mortgage debt equals equity.


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