Real Estate Investments & Business Opportunity Brokerage

Question 1

Liquidity

Answer 1

Refers to the ability to sell a investment very quickly without loss of ones capital.

Question 2

Illiquidity

Answer 2

Inability to sell an investment quickly, depending on the market.

Question 3

Leverage

Answer 3

Investors use others money

Question 4

Equity

Answer 4

Investors using their own money. Difference between what you owe and what its worth.

Question 5

Positive leverage

Answer 5

Making money

Question 6

Negative leverage

Answer 6

Losing money

Question 7

Business enterprise brokers

Answer 7

normal deals with corporates transactions. The purchase of business that provides goods and/or services.

Question 8

Business opportunity brokers

Answer 8

Typically deal in the sale and purchase of smaller businesses

Question 9

Goodwill

Answer 9

The intangible asset attributed to a business’s reputation and the expectation of continued customer loyalty.

Question 10

Going concern Value

Answer 10

Value of established business property, compared with the value of just the physical assets of business that isn’t yet established.