Chapter 1 Questions

1. As discussed in chapter one, the key to large returns is     ______________.

a.   rich clients

b.   superior information

c.   efficient markets

d.   punctuality

2. A real estate investor ____________.

a.   funds real estate projects in expectation of a return

b.   has control of the real estate in which they invest

c.   is the same thing as a successor entrepreneur

d.   specializes in renovating properties and selling them for a profit

3. According to activities model of real estate what do real estate entrepreneurs and consumers exchange?

a.   They exchange fees for services.

b.   They exchange return on equity for capital.

c.   They exchange space over time for capital.

d.   They exchange capital for debt service.

4. The government provides real estate entrepreneurs with infrastructure, regulation, and enforcement.

5. A mortgage broker is a real estate professional who assesses the risks of mortgages.

6. Real estate and real property are often used synonymously because they mean exactly the same thing.

7. Stratified product types make it difficult for a real estate agent who specializes in single family homes to transition to selling retail properties.

8. A developer can be an individual, a group of people, a corporation, or a government.

1.   b

2.   a

3.   c

4.   T

5.   F

6.   F

7.   T

8.   T