CH.8 Questions By Jazmin Padilla

CH.8 Questions

By Jazmin Padilla

1. Part of conceiving a development project includes all of the following except:

1. Finding a site
2. Preparing a preliminary pro forma
3. Defining a concept
4. Purchasing a building 

2. Which of the following is part of the commitment stage of entrepreneurial activity?

1. Constructing the design
2. Examining project feasibility
3. Conceiving a project
4. None of the above

3. “Back of the envelope” analysis would include a detailed and thorough analysis of the site financials. 

4. Relationships are extremely valuable during the pre-commitment stage of development. 

5. In order to gain control of the site the developer must purchase the property immediately. 

6. At which stage does the development change from pre-commitment to postcommitment?

1. Stage 3 Refine the Concept
2. Stage 4 Design the Concept
3. Stage 5 Construct the Design
4. Stage 6 Manage the Asset

7. The duration of a construction loan matches the period of construction and must be paid upon completion of the project. 

8. A developer will most likely favor free rent over tenant improvements. 

1. D 2. A 3.F 4.T 5.F 6.B 7.T 8.F