Ch 17 Final (2025) EXAM QUESTIONS AND ALL CORRECT ANSWERS
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Terms in this set (57)
The purchase price of a business goodwill
minus the value of the tangible
assets of that business equals
the intangible assets of the
business. This is called
Which type of appraisal technique Liquidation analysis
is unique to business appraisal?
The owner of a hardware store Liquidation value
has filed for bankruptcy and the
real estate is up for
sale. The money that the property
will bring at auction is BEST
described as which type of
value?
The financial term applied to the leverage.
use of
borrowed funds to finance the
purchase of an office building is
A lack of maintenance is called The statement is true
deferred maintenance.
Negative leverage occurs when The statement is false
the benefits of borrowing
exceed the costs of borrowing.
Real estate investments require The statement is true
active management.
A disadvantage of investing in The statement is true
real estate is the relatively high
degree of risk.
, Business risk is associated with The statement is true
the degree of variance between
projected income and expenses
and actual income and expenses.
Purchasing power risk is The statement is true
associated with inflation.
One of the ways business The statement is true
brokerage is different from real
estate brokerage is that
business brokerage includes
intangible assets.
The going concern value of a The statement is true
business may be different from
the real estate value.
The methods used to estimate The statement is false
the value of a business are very
different from the techniques
used to appraise real property.
Liquidation analysis may be The statement is true
necessary because of the death
of a sole proprietor.
It is advisable to have the buyer The statement is true
sign a
confidentiality/nondisclosure
agreement before releasing
financial information
concerning the business.
One of the steps in the sale of a The statement is true
business is to subtract the
value of all liabilities
(including the value of preferred
stock) from the value of the
business.
The cost to duplicate the business replacement cost.
structure being appraised having
the same use but differing
100% SOLVED AND GUARANTEED SUCCESS!!
Terms in this set (57)
The purchase price of a business goodwill
minus the value of the tangible
assets of that business equals
the intangible assets of the
business. This is called
Which type of appraisal technique Liquidation analysis
is unique to business appraisal?
The owner of a hardware store Liquidation value
has filed for bankruptcy and the
real estate is up for
sale. The money that the property
will bring at auction is BEST
described as which type of
value?
The financial term applied to the leverage.
use of
borrowed funds to finance the
purchase of an office building is
A lack of maintenance is called The statement is true
deferred maintenance.
Negative leverage occurs when The statement is false
the benefits of borrowing
exceed the costs of borrowing.
Real estate investments require The statement is true
active management.
A disadvantage of investing in The statement is true
real estate is the relatively high
degree of risk.
, Business risk is associated with The statement is true
the degree of variance between
projected income and expenses
and actual income and expenses.
Purchasing power risk is The statement is true
associated with inflation.
One of the ways business The statement is true
brokerage is different from real
estate brokerage is that
business brokerage includes
intangible assets.
The going concern value of a The statement is true
business may be different from
the real estate value.
The methods used to estimate The statement is false
the value of a business are very
different from the techniques
used to appraise real property.
Liquidation analysis may be The statement is true
necessary because of the death
of a sole proprietor.
It is advisable to have the buyer The statement is true
sign a
confidentiality/nondisclosure
agreement before releasing
financial information
concerning the business.
One of the steps in the sale of a The statement is true
business is to subtract the
value of all liabilities
(including the value of preferred
stock) from the value of the
business.
The cost to duplicate the business replacement cost.
structure being appraised having
the same use but differing
