Answer:
The problem faced while using the judgement by the market structure criteria is that it is difficult for determining the geographic market and the relevant industry.
Explanation:
Market structures criteria are the kind or type of goods and services being traded, the size as well as the numbers of the consumers and the producers in the market and the degree to which the information could flow freely.
So, the problem which can be faced while using the judgement by the market structure criteria is that it is difficult for determining the geographic market and the relevant industry.
Answer:
Statement # 1: False
Statement # 2: True
Statement # 3: False
Statement # 4: True
Explanation:
Lets look at each statement provided in the question and determine which of them is true or false.
Statement # 1 is false. First things first, the interest on this loan amount is higher which is at 4.15%. This is compared to the interest of 4% applicable on loan option 1. Secondly, there is a four year interest only option. This means that for 4 years there will be no repayments of the principal amount which means that the interest of 4.15% will continue to apply on the entire loan amount for these 4 years. In loan 1 however, principal repayments will reduce the principal amount after the 1st year which would further reduce the interest payment in the second year.
Statement # 2 is true. Loan 2 has an interest only period for the first 4 years. During this year you will only pay the 4.15% interest whereas in loan option 1, you will pay 4% interest AND the principal amount. The effect would offset once principal payments start in loan 2 but it would still mean that payments would be minimized in the first few years.
Statement # 3 is false. One of the advantages of having a loan with an interest free clause is that you can pay it off faster than a conventional loan. Since both the loans are fully amortizing, the principal payments would be different but would both result in the principal being repaid in the full 30 year tenor. Any extra payment that you wish to make would be counted towards principal payment in each loan option. However, for loan 1, the total monthly payments you make would remain the same. For loan 2, the extra payments that you make will continue to lower the monthly payments in way of interest which would allow you to save up more to pay more off in principal. The interest only period will also allow you to arrange extra funds during the IO period and repay the principal further. With loan 1, you will continue to make the same monthly payment until the end.
Statement # 4 is true. A fixed payment is being made each year by way of interest and principal repayments and will remain the same till the loan is fully amortized at maturity. In loan 2 on the other hand, a larger balloon payment will start 4 years later since only interest is paid in the first 4 years. So basically you may lower in the first 4 years and more in the remaining years.
The appraiser must identify the data source for the GLA.
Is TRUE regarding gross living area (GLA) in an exterior-only inspection appraisal for Fannie Mae
Property valuation, property valuation, or land valuation is the process of creating a property valuation (usually market value). Real estate transactions are traded daily and, in contrast to corporate stocks that are identical, are infrequent and each property is unique (especially its condition, an important factor in valuation) and may require the valuation.
The location also plays a decisive role in the evaluation. However, real estate cannot be relocated, so it is often the upgrade or improvement of a home that can change its value. Evaluation reports are the basis for mortgages, real estate planning, divorce, taxation, and more. Valuation reports are sometimes used to set the sale price of a property.
In addition to various compulsory education levels from finance to civil engineering, most, if not all, countries require appraisers to be licensed to practice.
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Answer:
Question 1
The building will depreciate by 10% in one year so in one year you will only be able to sell it for:
= 200,000 * ( 1 - 10%)
= $180,000
Question 2.
A. Your bookkeeper is right, because the extra income you will earn will be less than the cost of owning the building for the year.
If you buy the building, you will have to pay back $200,000 in a year.
However, you will only be able to sell the building for $180,000 and you will receive an income of $12,000 for a total of:
= 180,000 + 18,000
= $192,000
This is $8,000 less than the $200,000 you borrowed so you will pay back more than you borrowed.
Question 3
A. Holding onto your $200,000 in cash.
Holding your cash is the best option because investing in the building would lead to a loss of $8,000 after a year.
The bank would also reduce your balance by 1%. It is therefore best to hold the money.
Question 4
A. False
Companies with cash still have to make decisions based on gains and they will stand to gain more if they deposited their money because this would give them more interest profits.
Answer:
The answer is: B) Time utility
Explanation:
Time utility refers to the business practice of making products or services available during the times that they are most convenient or desirable for customers.
For example, stores are decorated differently for Halloween than for Christmas, and the products they sell are also different.