IAAO 101 CHAPTER ONE EXAM
QUESTIONS & VALID COMPLETE
SOLUTIONS
AD VALOREM - Correct Answer ✔✔ ACCORDING TO VALUE
TAX RATE - Correct Answer ✔✔ BUDGET DIVIDED BY ASSESSED VALUE
6 BASIC RIGHTS - Correct Answer ✔✔ SELL, LEASE, USE, GIVE AWAY, ENTER OR
LEAVE, REFUSE TO DO ANY
REAL ESTATE - Correct Answer ✔✔ LAND AND IMPROVEMENTS
PROPERTY CLASSES - Correct Answer ✔✔ RESIDENTIAL, COMMERCIAL,
INDUSTRIAL AND RURAL
PERSONAL PROPERTY - Correct Answer ✔✔ MOVABLE ITEMS
IN ORDER TO HAVE VALUE IT MUST HAVE THESE 3 - Correct Answer ✔✔ UTILITY,
SCARCITY AND DESIRABILITY
MARKET VALUE - Correct Answer ✔✔ THE MOST PROBABLE PRICE IN TERMS OF
MONEY WHICH A PROPERTY SHOULD BRING IN A COMPETITIVE AND OPEN
MARKET
APPRAISAL - Correct Answer ✔✔ OPINION OR ESTIMATE OF VALUE
VALUATION - Correct Answer ✔✔ THE PROCESS OF ESTIMATING THE VALUE
PRINCIPLE OF ANTICIPATION - Correct Answer ✔✔ VALUE IS CREATED BY THE
EXPECTED FUTURE BENEFITS OF THE PROPERTY
PRINCIPLE OF CHANGE - Correct Answer ✔✔ NEVER CONSTANT. VALUE IS ONLY
VALID AS OF A SPECIFIC DATE BECAUSE OF PHYSICAL, ECONOMIC,
GOVERNMENTAL AND SOCIAL FORCES
PRINCIPLE OF BALANCE - Correct Answer ✔✔ VALUE IS REACHED WHEN THE
FOUR STAGES OF PRODUCTION (LAND, LABOR, CAPITAL, MANAGEMENT)
ATTAIN A STATE OF EQUILIBRIUM
QUESTIONS & VALID COMPLETE
SOLUTIONS
AD VALOREM - Correct Answer ✔✔ ACCORDING TO VALUE
TAX RATE - Correct Answer ✔✔ BUDGET DIVIDED BY ASSESSED VALUE
6 BASIC RIGHTS - Correct Answer ✔✔ SELL, LEASE, USE, GIVE AWAY, ENTER OR
LEAVE, REFUSE TO DO ANY
REAL ESTATE - Correct Answer ✔✔ LAND AND IMPROVEMENTS
PROPERTY CLASSES - Correct Answer ✔✔ RESIDENTIAL, COMMERCIAL,
INDUSTRIAL AND RURAL
PERSONAL PROPERTY - Correct Answer ✔✔ MOVABLE ITEMS
IN ORDER TO HAVE VALUE IT MUST HAVE THESE 3 - Correct Answer ✔✔ UTILITY,
SCARCITY AND DESIRABILITY
MARKET VALUE - Correct Answer ✔✔ THE MOST PROBABLE PRICE IN TERMS OF
MONEY WHICH A PROPERTY SHOULD BRING IN A COMPETITIVE AND OPEN
MARKET
APPRAISAL - Correct Answer ✔✔ OPINION OR ESTIMATE OF VALUE
VALUATION - Correct Answer ✔✔ THE PROCESS OF ESTIMATING THE VALUE
PRINCIPLE OF ANTICIPATION - Correct Answer ✔✔ VALUE IS CREATED BY THE
EXPECTED FUTURE BENEFITS OF THE PROPERTY
PRINCIPLE OF CHANGE - Correct Answer ✔✔ NEVER CONSTANT. VALUE IS ONLY
VALID AS OF A SPECIFIC DATE BECAUSE OF PHYSICAL, ECONOMIC,
GOVERNMENTAL AND SOCIAL FORCES
PRINCIPLE OF BALANCE - Correct Answer ✔✔ VALUE IS REACHED WHEN THE
FOUR STAGES OF PRODUCTION (LAND, LABOR, CAPITAL, MANAGEMENT)
ATTAIN A STATE OF EQUILIBRIUM
