Tuesday, March 15, 2011

Chapter #8 Questions

Chapter #8
Multiple Choice & True/False Questions

Prepared by: Kent Sakamoto

1. The second step of the "Dynamic Process of Real Estate Development" diagram involves...

A) Refining the Concept
B) Conceiving a Project
C) Examining Project Feasibility (p.201)
D) Constructing the Design

2. Which is true when examining the feasibility of a project?

A) If the Market Will Support the Project's Vision
B) If the Site Itself is Suitable , Both Physically/Legally to Accommodate Project
C) Both A and B (p. 204)
D) None of the Above

3. An exclusive option is....

A) The Exclusive Right to Purchase the Property and Close the Transaction by a Specified Date (p. 207)
B) A Clause Protecting Developers Against Loss if Project Fails Market Analysis
C) Process of Obtaining Necessary Government Permits
D) None of the Above

4. Developers are real estate entrepreneurs who build value by producing space.


True (p. 198)

5. The "Dynamic Process of Real Estate Development" model breaks down the process into 8 specific steps.


False (p. 201) 6 Steps

6. Competitive markets is the economic and locational environment in which a particular property competes and trades.


True (p. 210)

7. A bridge loan is a short-term loan issued to a developer to fund the construction stage of a project.


False (p. 213) Construction Loan

8. Preleasing is an effective risk-mitigation strategy since it increases the probability of success early in the project.


True (p.215)

No comments:

Post a Comment