Chapter 17: Real Estate Investments, Business Brokerage and Auctioning (FITB) Flashcards Preview

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Flashcards in Chapter 17: Real Estate Investments, Business Brokerage and Auctioning (FITB) Deck (14)
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1
Q

A business with sales of less than $200,000 is classified as a business ____.

A

opportunity

2
Q

The Uniform Commercial Code essentially covers the sale of ____ ____.

A

personal property

3
Q

____ ____ liabilities mature in more than 1 year.

A

long term

4
Q

The basic accounting formula states that assets equal liabilities plus ____ ____.

A

owner equity.

5
Q

____ assets are those that have no physical existence.

A

intangible

6
Q

When the rate of return on borrowed funds exceeds the rate of return on the investment, the investor is experiencing ____ leverage.

A

negative

7
Q

The transfer of ownership to personal property is generally accomplished using a ____ ____ ____.

A

bill of sale

8
Q

An instrument similar to a mortgage that is used to secure payment due on the sale of personal property is called a ____ ____.

A

security agreement

9
Q

Liquidation value may be used to establish the minimum value of a business that is ____.

A

unprofitable

10
Q

The ability a business broker must possess that distinguishes them from most other real estate brokers is knowledge of ____ and ____ ____.

A

accounting and corporate finance

11
Q

A business broker must be able to read and understand ____ ____ and ____ ____.

A

operating statements and balance sheets

12
Q

Dividing the operating expenses by the effective gross income results in the calculation of the ____ ____ ratio.

A

operating expense ratio

13
Q

The risk associated with losses from storms, fire, theft and so on is called ____ risk.

A

static

14
Q

Individuals that have no intention of buying at an auction but are used to drive the price up are called ____.

A

by-bidders

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