Chapter 17: Real Estate Investments, Business Brokerage and Auctioning (FITB) 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 1 year.
long term
The basic accounting formula states that assets equal liabilities plus ____ ____.
owner equity.
____ assets are those that have no physical existence.
intangible
When the rate of return on borrowed funds exceeds the rate of return on the investment, the investor is experiencing ____ leverage.
negative
The transfer of ownership to personal property is generally accomplished using a ____ ____ ____.
bill of sale
An instrument similar to a mortgage that is used to secure payment due on the sale of personal property is called a ____ ____.
security agreement
Liquidation value may be used to establish the minimum value of a business that is ____.
unprofitable
The ability a business broker must possess that distinguishes them from most other real estate brokers is knowledge of ____ and ____ ____.
accounting and corporate finance
A business broker must be able to read and understand ____ ____ and ____ ____.
operating statements and balance sheets
Dividing the operating expenses by the effective gross income results in the calculation of the ____ ____ ratio.
operating expense ratio
The risk associated with losses from storms, fire, theft and so on is called ____ risk.
static
Individuals that have no intention of buying at an auction but are used to drive the price up are called ____.
by-bidders
