Chapter 11

Question 1

A numbers which, times the gross income of a property, produces an estimate of value of the property….?

A. Gross Rent Multiplier
B. Cap Rate
C. Internal Rate of Return
D. Net Operating Income

Answer 1

A. Gross Rent Multplier

Question 2

This is a section of the U.S. Internal Revenue Service Code that allows investors to defer capital gains taxes on any exchange of like-kind properties for business or investment purposes……?

A. Section 1031 Exchange
B. Section 1011 Exchange
C. Section 901 Exchange
D. Section 12A Exchange

Answer 2

A. Section 1031 Exchange

Question 3

Agency that exists as a result of actions of the parties is known as……?
A.  Bound Agency
B.  Implied Agency
C.  Express Agency
D.  Independent Agency

Answer 3

D. Implied Agency

Question 4

That authority which a third person reasonably believes an agent possesses because of the acts or omissions of the principal is known is….?

A. Implied Authority
B. Absolute Authority
C. Ostensible Authority
D. Express Authority

Answer 4

C. Ostensible Authority