Inspection of the Premises Prior to the Purchase of Real

question 1

Multiple Choice

Inspection of the premises prior to the purchase of real estate is important to detect which of the following?

• A) Structural defects
• B) Insect infestation
• C) Major electrical or plumbing problems
• D) All of these choices are correct.
• E) None of these choices is correct.

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Definitions:

Contributed Capital

Funds raised by a company through the issuance of shares to investors, representing the stockholders' equity apart from retained earnings.

Retained Earnings

The portion of net income left over for a business after it has paid out dividends to its shareholders, often used for reinvestment in the business or to pay down debt.

Small Stock Dividend

A dividend payment made in the form of additional shares, typically less than 25% of the existing shares.

Retained Earnings

The cumulative amount of net income kept in the company after dividends are paid and not distributed to shareholders.