Chapter 8 Entrepreneurial Activity

1)                                 What are the dynamic process of real estate development? 
A.      Commitment Stages
B.      Precommitment
C.      A & B
D.      None of the above


2)                                    Competitive market:
A.      The economic and location environment in which a particular property competes and trades.
B.      The process of obtaining the necessary government permits to begin and sustain a construction project.
C.      All of the above
D.      None of the above

3)                                        Permitting is a:
A.      The process of obtaining the necessary government permits to begin and sustain a construction project.
B.      C &A
C.      Freehold estates
D.      None of the above




T/F Question:
4)      The management challenge for the construction lender is to make sure that the money released for construction doesn’t run a head of the actual construction.
·         T
·         F

5)      The term “Construction loan” is a short-term loan issued to a developer to fund the construction stage of a project.
.        T
·         F

6)      The final “deal books” for both lender and investor is also called the financing package and the investor package.
·         T
·         F
7)       The purpose of the pre-commitment stage of the development process is to steadily confirm a concept’s likelihood for success.
·         T
·         F
8)      A general contractor is a construction expert who contracts with a developer to construct or to manage the process of construction in real estate improvements.
·         T
·         F

 1C, 2A, 3A, 4T, 5T, 6T, 7T, 8T