Unit 21 Exam

Changes in the economy would be considered which kind of risk?

• Dynamic risk

• Capital risk

• Financial risk

• Static risk

Which of the following is a category of operating expenses?

• Property Taxes

• Debt Service

• Reserves for replacements

• All of the above

Which of the following is not one of the three primary types of manufacturing properties?

• medium industrial

• warehouse buildings

• light manufacturing

• heavy industrial

Business risk refers to

• the risk of losing the principal cash invested

• the risk of an investment not yielding the necessary return

• the risk of a competitive market

• the risk of becoming over leveraged on an investment

Vandalism would be considered which kind of risk?

• Dynamic risk

• Capital risk

• Financial risk

• Static risk

Which is the most active of all real estate markets?

• single-family properties

• multifamily properties

• retail properties

• manufacturing properties

What is a pro forma statement?

• the amount of cash generated by a property

• the conducting of financial analysis to determine the feasibility of an investment

• the projection of future income and expenses or other results

• the purchasing power of the dollar when received

Which of the following electric services is most common in single-family residential properties?

• Submetered electric service

• Direct meter electric service

• Rent-inclusion electric service

• Rent-exclusion electric service

Which of the following is NOT a fixed expense for an investment property?

• Property Taxes

• Debt Service

• Property Insurance

• All of the above

The area obtained by subtracting the loss factor from the rentable area is known as the

• carpetable area

• usable area

• rentable area

• add-on factor