Chapter 12 - Investing and Other Broker-Related Fields

Question 1

the number one objective for investing in real estate is

Answer 1

to make money

Question 2

commercial Banks make the majority of their funds available for

Answer 2

short-term loans, credit cards, automobile and construction loans, and high interest loans

Question 3

and buying income-producing property greater emphasis is placed on

Answer 3

Financial benefits

Question 4

operating expenses do not include

Answer 4

income tax Provisions, depreciation allowances, loan payments

Question 5

the total gross income of property is capable of producing at full occupancy, without any deductions for expenses is

Answer 5

potential gross income

Question 6

which of the following is a category of operating expenses for appraisal purposes

Answer 6

reserves for replacement, variable expenses, sixth expenses

Question 7

which of the following are operating expenses that do vary

Answer 7

utility costs, property management fees, and cleaning and maintenance fees

Question 8

a subchapter S corporation is taxed

Answer 8

only once

Question 9

the most preferred form of legal organization is

Answer 9

limited partnership

Question 10

REIT stands for

Answer 10

Real Estate Investment Trust

Question 11

a business opportunity sale can include

Answer 11

the sale of a business, the lease of a business, the Goodwill of a business

Question 12

in a bulk sale the transferee refers to the

Answer 12

buyer

Question 13

which of the following is filed with the Secretary of State in California

Answer 13

the financing statement

Question 14

a seller’s permit is secured from the

Answer 14

State Board of Equalization

Question 15

the bill of sale serves the same function in the transfer of personal property as

Answer 15

the grant deed does for real property

Question 16

an agreement where the seller of a business agrees to not open a competing business for a certain period of time within a specific geographical area is referred to as

Answer 16

a covenant not to compete

Question 17

the term RPSD stands for

Answer 17

real property Securities dealer

Question 18

before selling real property Securities to the public, the broker must obtain a permit from the

Answer 18

California Bureau of Real Estate

Question 19

a Syndicate can be a

Answer 19

Corporation, partnership, Trust

Question 20

the broker’s broker or consultant is one way to describe the

Answer 20

real estate investment counselor