Wednesday, March 16, 2011

Chapter 8 Multiple Choice/True or False Questions

Multiple Choice
1) Which one of these is not an activity a real estate investor might engage in?
a) Bid the construction plans
b) Manage the asset
c) Conceive a development project
d) Continue on with the project even though it's not feasible

2) Which of these real estate professionals isn't a key factor during the precommitment phases?
a) General contractor
b) Engineer
c) Subcontractors
d) Architect

3) Which of these isn't a loan that a developer would use during the construction stage?
a) Permanent loan
b) FHA loan
c) Bridge loan
d) Construction loan

True/False
1) A performance bond is an assurance made by the original party assuring the he/she will perform according to the terms of the contract entered into by the original party and the party requiring the bond. T/F

2) A construction loan is a long term loan issued to a developer to fund the construction stage of a project. T/F

3) A real estate developer should be well-versed in entrepreneurship leadership, marketing, legal, financing, community relations, design and construction. T/F

4) Withdrawl from a project during post commitment phases can be a potential "career ender".
T/F

5) The permitting process takes place during the design stage. T/F




Multiple Choice Answers
1) d
2) d
3) b

True/False Answers
1) False, the assurance is made by a third party called the surety.
2) False, a construction loan is a short-term loan.
3) True
4) True
5) True

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