Tuesday, April 9, 2013

Chapter 9



1.       (T/F) The likelihood of an occurrence of an unwanted event is called Risk. T

2.       (T/F) The pursuit of a future return by delaying consumption and taking an anticipated, desired level of risk is known as an investing. T

3.       (T/F)  A Cash Flow is the income from a real estate investment realized by the investor after vacancy and credit loss, operating expenses, and debt service have been paid. T

4.       (T/F) A tax shelter is the reduction in taxable investment income. T

5.       (T/F) Adjusted basis is not the original basis in the property improvements. F

6.       One suppl9ier in a particular market that has control over market prices since there is no competition is called a_______________?
a.       Oligopoly
b.      Monopoly
c.       Psychic benefit
d.      Pride of ownership
                                                               i.      b
7.       What is an Oligopoly?
a.       A market with few suppliers that have some control over market price.
b.      The control of real estate product within defined geographic region.
c.       Supplier in a particular market.
d.      The pride associated with the real property ownership.
                                                               i.      A
8.       What is a Taxable income?
a.       Calculate the income use for annual income tax.
b.      A government taxable claim of money.
c.       Analysis the possible income from tax.
d.      Constant payment.
                  i.    a

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