CCIM 101 Financial Analysis – Questions and CORRECT ANSWER s (Latest Verified Content)
Question : Two major decision makers
CORRECT ANSWER : Users and investors
Question : Users
CORRECT ANSWER : Those who make decisions
regarding space that they need to use for their business
Question : Investors
CORRECT ANSWER : Those who make decisions
regarding investments in properties that are or could be leased to users
Question : Can a user also be an investor?
CORRECT ANSWER : Yes. Even so it is useful to separate
the decision to use the real estate from the decision to invest in the real estate. A property can have great use but maybe a bad investment.
Question : User decisions
CORRECT ANSWER : Users want space that meets the
needs of their business in terms of location, size and layout of the space, quality of building and perhaps proximity to other business suppliers and customers
Question : Users decisions part two
CORRECT ANSWER : Should space be acquired?
What type and how much space should be acquired?Where should the space be acquired?What should the space acquisition entity be?Should the space be a purchase or lease?What should the acquisition process be?
Question : User decision leased space
CORRECT ANSWER: Should discretionary capital
expenditures be made?Should the capital structure of acupuncture be changed?
Should the space utilization be changed?Should the user continue to occupy the space?Should any lease options be exercised?Should the lease be renegotiated?Should the space be disposed of?
Question : User decisions owned space
CORRECT ANSWER : Should discretionary capital
expenditures be made?Should the capital structure be changed?Should the space utilization be changed?Should the user continue to occupy the space?Should the property be sold or exchanged?
Question : User disposition decisions
CORRECT ANSWER : What should the disposition price
be?Should should the disposition method be?Should should the disposition process be?
Question : Investor decisions
CORRECT ANSWER : Investors are primarily interested in
receiving a return on investment (yield) that is commensurate with the risk that they will incur by making an investment.
Question : Rate of return
CORRECT ANSWER : The rate of return is the percentage
return on each dollar invested for each period it is invested.Rates of return can be estimated on before tax or an after tax basis
Question : Acquisition decisions
CORRECT ANSWER : Should investment real estate be
acquired?What type of investment real estate should be acquired?When should investment real estate be acquired?Where should investment real estate be acquired?Which of the available investment real estate alternatives should be acquired?