Archives: Quiz

For most commercial property types, lease lengths can vary considerably. Therefore, both parties must tradeoff between the advantages and disadvantages associated with particular leasing terms. Owners may prefer longer leases for all of the following reasons EXCEPT: A. Delay of […]

FHA mortgage insurance covers any lender loss after conveyance of title of the property to the U.S. Department of Housing and Urban Development (HUD). FHA mortgage insurance requires two premiums to be paid: the UFMIP (up-mortgage insurance premium) and the […]

Any contract, whether it is for the sale of real estate or some other entity, must contain five basic elements. However, any contract for the sale of real estate must adhere to two additional requirements. Which of the following contract […]

Adjustments for physical characteristics are intended to capture the dimensions in which a comparable property differs physically from the subject property. If the only physical difference between the subject property and the comparable is that the comparable does not have […]

After a structure is built, it is impractical for even a building expert to fully assess the quality of the construction and the safety hazards it may harbor. This is an example of which of the following problems that plagues […]

Most real estate loans have a definite term to maturity, stated in years. The majority of home loans will typically have a term to maturity between: A. 1-5 years B. 5-7 years C. 7-15 years D. 15-30 years A tool […]

Suppose you have taken out a $125,000 fully-amortizing fixed rate mortgage loan that has a term of 15 years and an interest rate of 6%. After your first mortgage payment, how much of the original loan balance is remaining? A. […]

A client has requested advice on a potential investment opportunity involving an income producing property. She would like you to determine the internal rate of return of the investment opportunity based on the following information. Expected Holding Period: 5 years; […]

When discussing time-value-of-money it is necessary to understand some key terminology. Which of the following terms refers to a fixed amount of money paid or received at the end of every period (i.e. a series of equal lump sums)? A. […]

Given the following information, calculate the debt coverage ratio for this investment. Potential gross income: $120,000, Vacancy rate: 9%, Net operating income: $57,900, Operating expenses: $51,300, Acquisition Price: $520,000, Debt service: $40,000. A. 0.69 B. 1.45 C. 2.73 D. 8.29 […]

Capital markets can be divided into two broad categories: equity interests and debt interests. Equity investors in real estate expect to earn a return on their investment through: A. The collection of rent and price appreciation B. The collection of […]

Property rights created from marriage have a clear implication for real estate transactions. Which of the following marital property rights gives a spouse a one-half claim on all property acquired “from the fruits of the marriage?” A. Dower B. Curtesy […]

The risk of bankruptcy tends to travel with the risk of foreclosure since both can result from financial distress. Known popularly by its section in the Federal Bankruptcy Code, which of the following types of bankruptcy is a court-supervised workout […]

Assume a retail tenant is paying a base rent of $120,000 per year (or $10,000 per month). In addition, the tenant must pay 7 percent of gross store sales in excess of $143,000 per month as percentage rent. If the […]

While most real property in the United States is privately owned, government regulations limit private property use and therefore play an important role in the determination of property value. Proponents of government intervention argue that regulation is needed to address […]

Consider the following excerpt from a sample deed: “The Seller covenants with The Buyer that it has a good right to convey, that the property is free from all encumbrances, and that it forever warrants to defend all of the […]

Operating expenses can be divided into two categories: variable and fixed expenses. Which of the following best exemplifies a fixed expense? A. Utilities B. Property management C. Local property taxes D. Trash removal Mortgage originators can either hold loans in […]

During the days following Hurricane Katrina, telephone and Internet service was poor across a wide area because so many people were trying to get in touch with friends and relatives. Customers of these services soon realized that they should not […]

One of the ways in which standardization of services occurs is through: A. Substitution of technology for personal contact and human effort B. Organizational flattening C. Employee encroachment D. Division of labor and specialization E. Autonomous management Jiffy Lube, a […]

By involving employees in cross-functional teams to align their jobs with end customer requirements, a service firm is: A. Managing service promises B. Resetting customer expectations C. Communicating with customers D. Managing internal marketing communications E. Exceeding customer expectations Which […]

Last summer, Kenta and Sawako spent part of their vacation in St. Louis and Boston, staying at the St. Louis Hilton and the Boston Hilton. When they checked in at the St. Louis Hilton the front desk clerk was very […]

Since service companies have found that customers differ in their relationship value and that it may be neither practical nor profitable to meet or exceed all customers’ expectations, they have divided their target markets according to: A. Current and/or future […]

Flying across the Pacific Ocean is an eight-hour trip that could be dreadful if you did not fly Singapore Airlines. An ad that featured a customer saying, “The cabin crew makes flying with Singapore Airlines a pleasure” and announcing Singapore […]

Deana and Rod Li went on a one-week vacation at the Club Med Turkoise village, located in Turks and Caicos, a chain of islands in the Caribbean. Club Med’s per person price of $1499 included round-trip air travel from New […]

Bob and Tiffany have been busy this week seeing all kinds of service providers. In which of the following service situations would Bob and Tiffany have had the lowest level of participation? A. A visit to McDonald’s for breakfast B. […]

The Offshore Sailing School in Jersey City, New Jersey offers a basic sailing course, which takes place in three days over two weekends, for $495. Students enrolled in the course attend classroom sessions that cover the theory and technology of […]

Which of the following is NOT a soft customer-defined standard? A. Uniforms are to be immaculate B. Avoid other tasks while on the telephone with customers C. Deliver orders on the date promised D. Thank the customer at the end […]

Which of the following statements about the American Customer Satisfaction Index (ACSI) is true? A. The ACSI demonstrates to service providers that there is much room for improvement in customer satisfaction B. The ACSI was developed by the federal government […]

FedEx developed a 12-item statistical Service Quality Indicator to measure customer satisfaction and service quality. The index is comprised of customer-defined performance standards such as number of missed pick-ups, number of lost packages and number of late deliveries. Each of […]

The _______ suggests an initially disappointed customer who has experienced good service recovery might be even more satisfied and loyal as a result. A. Baker’s dozen paradigm B. Service recovery paradox C. Halo effect D. Service dilemma E. Service quandary […]

_____ is a key determinant of whether an offering should be classified as a product or a service. A. Physicality B. Audience passivity C. Intangibility D. Perception E. Abstraction When Marilyn returned to her oncologist’s office for a checkup. She […]

Which of the following is NOT a demonstrated benefit of service blueprinting? A. Providing a platform for innovation B. Recognizing roles and interdependencies among functions, people, and organizations C. Designing moments of truth from the customer’s point of view D. […]

At Hawkes and Wellington, an upscale men’s clothing store, classical music plays softly in the background, while the store’s fragrance-a blend of oak, leather and fine tobacco wafts from carefully placed heat-sensitive pellets. The music and fragrance at Hawkes and […]

The primary constraint on service production for a popular, well-established theater company that annually presents a series of musical comedies is: A. Equipment B. Labor C. Money D. Facilities E. Time Customer _____ are beliefs about service delivery that function […]

Because he has a busy practice, new patients for dentist Dr. Kirby Brown are informed that, unless there is an emergency, the first available appointment will be in three months. If they accept the appointment, they will be reminded of […]

Companies can actually measure increases and decreases in revenue from the retention and defection of customers. Overuse or under use of service can directly contribute to provider gap 3 ” failure to deliver what was designed and specified. Answer: TRUE […]

Any company that disseminates information through different communications channels needs to be concerned with integrating this information so that customers receive unified messages and promises about its offering. Search costs are the costs invested to identify and choose from services […]

The most important determinant of perceptions of service quality among U.S. customers is reliability. Defensive marketing can be used to reduce customer defection. Answer: TRUE In most companies, it is significantly easier to improve horizontal communications than vertical communications. Answer: […]

A customer’s refusal to comply with park regulations when riding a roller coaster in an amusement park will have no effect on his or her level of satisfaction. In its role as socializer, the servicescape should only be designed to […]

Through its external marketing efforts, a company makes promises to its customers regarding what they can expect and how it will be delivered. The development of services marketing concepts has been strongly influenced by professional services like doctors and attorneys. […]

Which of the following statements about predicted service is TRUE? A. If the consumer predicts good service, the level of adequate service is likely to be higher than if he or she predicted poor service B. Predicted service estimates the […]

Zones of tolerance are a source of desired expectations. In a service culture, good service is a way of life and it comes naturally to the members of the organization because it is an important norm. Answer: TRUE When customers […]

If the present value of $1.00 received n years from today at an interest rate of r is 0.3855, then what is the future value of $1.00 invested today at an interest rate of r% for n years? A. $1.3855 […]

Limited liability is an important feature of: A. Sole proprietorships B. Partnerships C. Corporations D. All of the above The MM theory with taxes implies that firms should issue maximum debt. In practice, this is not true because: I) Debt […]

On January 2, Michigan Mining declared a $25-per-share quarterly dividend payable on March 9th to stockholders of record on February 9. What is the latest date by which you could purchase the stock and still get the recently declared dividend? […]

Short-term financial decisions: I) involve short lived assets II) involve short lived liabilities III) are easily reversed A. I only B. II only C. I, II, and III D. III only The value of a previously purchased machine to be […]

Given the following data: Current assets = 500; Current liabilities = 250; Inventory = 200; Account receivables = 200; calculate the cash ratio: (assume that the firm has no marketable securities) A. 0.4 B. 2.0 C. 1.5 D. None of […]

Financial Calculator Company proposes to invest $12 million in a new calculator making plant. Fixed costs are $3 million a year. A financial calculator costs $10 per unit to manufacture and can be sold for $30 per unit. If the […]

The risk-free rate is 5%, the market risk premium is 8% and the project’s beta is 1.25. Calculate the certainty equivalent cash flow for year-3. A. $228.35 B. $197.25 C. $300 D. None of the above Generally, which of the […]

Learn and Earn Company is financed entirely by common stock that is priced to offer a 20% expected rate of return. The stock price is $60 and the earnings per share are $12. The company wishes to repurchase 50% of […]