15

¡Supera tus tareas y exámenes ahora con Quizwiz!

Of the below, the investment property with the least liquidity would be a(n):

172-unit apartment building

Javier is valuing a business to put it up for sale. To find the right number, he evaluates the sale price of other very similar, recently-sold businesses. What method is he using to put a value on the business?

Because he is comparing the business to other, similar businesses, he is using a comparable sales analysis.

Why are residential investment properties considered more stable than commercial ones?

During a rocky economic time, businesses go bankrupt, but people still need homes to live in.

Emilio is going to sell a friend's business for a commission. The business doesn't have any real estate assets or long-term leases. Evaluate whether or not he needs a real estate license to market the business .

Floridians need real estate licenses to sell businesses.

Why does real estate offer investors more leverage than investment vehicles like stocks or bonds?

Having a property to serve as collateral gives real estate investors more leveraging power than other investment vehicles.

Kramer has $50,000 to invest. He obtains a mortgage that allows him to buy a $300,000 rental property. He sees the benefit of the entire $300,000 property, despite only putting up $50,000. What real estate investment characteristic does this demonstrate?

Kramer leveraged his $50,000 into a $300,000 investment.

An investor is trying to decide what type of property they want to purchase. They are concerned because they don't want to do a lot of maintenance on whatever they buy, and they want a tenant who will be there for the long term. Which property would best fit these criteria? single family

Of these, only industrial real estate meets the investment criteria.

Which of these investment types has the least liquidity

Real estate is generally considered one of the more illiquid investments

Sarah and Audrey each purchased a property through a combination of down payments and loans. Each then rented her property out. Ultimately, Sarah's net income was $15,000. Audrey, on the other hand, netted a loss of $8,000. What does this tell us about each investor's leverage?

Sarah's leverage was positive, while Audrey's leverage was negative. Positive leverage is when an investment has a rate of return higher than the cost of its debt. Negative leverage is when the cost of debt is higher than the income gained on an investment.

Which of these documents provides a concise summary of all revenue and expenses (profit and loss) of a business for a stated period of time?

The income statement provides a concise summary of all income and expenses of a business for a stated period of time.

Ramsey is putting together some documents for the sale of a business. One document he's creating shows the amount of money remaining after all the business's expenses have been paid. What is he calculating?

cash flow

Which of these is a tangible business asset?

inventory


Conjuntos de estudio relacionados

Geology of Planets Study Questions

View Set

7.1.1 Where is Industry Distributed?

View Set

Principles of Corporate Finance Exam 2 Chpt. 5-7

View Set

Topic 2 MA TPA Administrative Examination

View Set

Ch 4 Evaluating Messages and/or Images

View Set

Chapter 45 Digestive and Gastrointestinal Treatment Modalities QUIZ

View Set