Chapter 17 (Real Estate Investments and Business Opportunity Brokerage / Math) Flashcards
A business with sales of less than $200,000 is classified as a business __________________ .
opportunity
The Uniform Commercial Code essentially covers the sale of __________________ __________________ .
personal property
__________________ __________________ liabilities mature in more than one year.
Long term
The basic accounting formula states that assets minus liabilities equals __________________ __________________ .
owner equity
__________________ assets are those that have no physical existence.
intangible
When the cost of borrowing money to purchase an investment exceeds the rate of return on the investment, the investor is experiencing __________________ leverage.
negative
The transfer of personal property in a commercial transaction is generally accomplished using a(n) __________________ __________________ __________________ .
bill of sale
An instrument similar to a mortgage that is used to secure payment due on the sale of personal property in a commercial transaction is called a(n) __________________ __________________ .
security agreement
Liquidation value may be used to establish the minimum value of a business that is __________________ .
unprofitable
The ability that a business broker must possess that distinguishes them from most other real estate brokers is knowledge of __________________ and __________________ __________________ .
accounting,
corporate finance
A business broker must be able to read and understand __________________ __________________ and __________________ __________________ .
operating statements,
balance sheets
Dividing the operating expenses by the effective gross income results in the calculation of the __________________ __________________ ratio.
operating expense
The risk associated with losses from storms, fire, or theft, is referred to as __________________ risk.
static
The money made in an investment is referred to as a(n) __________________ .
return
