1. Which of the following is NOT a method commonly used to determine the residual value of a property?
O a) Estimate the residual value from expected changes in property value due to projected income
O b) Estimate the residual value from sales data of older "comparable" properties
O c) Discount all remaining cash flows for the specified holding period and then use a terminal cap rate for all future years
O d) Hire an appraiser to perform a forward-looking appraisal of the property
2. Which of the following is generally NOT found in a commercial lease?
O a) Limits on social events held in the space
O b) Restrictions on assignment or subletting
O c) Responsibility for maintenance and repair
O d) Alteration restrictions
3. The possibility that a property might be rezoned would be considered a:
O a) Business risk
O b) Financial risk
O c) Environmental risk
O d) Legislative risk
4. Which of the following statements is NOT true of real estate syndications?
O a) They offer tax benefits that other structures don’t
O b) They are not a formal (i.e. legal) organizational form
O c) They can be structured as corporations, limited partnership, or other organizational forms
O d) They are needed primarily when the amount of capital required is too big for one group of investors