Diane Ray – Chapter 8 M/C and T/F Questions

1. The stage of development that occurs before the developer assigns significant funds to the project is referred to what stage?
a. Phase 1
b. Productivity analysis
c. Precommitment
d. Binder

2. What term refers to the type of analysis done to estimate the total demand in a competitive market by a particular property?

a. Marketability study
b. Market analysis
c. Highest and best use analysis

3. The highest and best use analysis is primarily used
a. to evaluate the marketable capacity of a site
b. to find the use resulting in the greatest productivity of the site
c. to determine how many structures can reasonably fit on lot
4. An exclusion option is used for the what purpose?

a. Refine the design and the pro forma
b. Gain control of the site
c. Determine the marketability of a site
d. Perform due diligence

5. Developers take on a high level of risk in pursuit of a low return
a. True
b. False

6. Due diligence is the period in which a developer determines the legal and practical suitability

a. True
b. False


Answers: 1) c, 2) a, 3) b, 4) b, 5) a, 6) a