A Form of Property Ownership Entitling the Owner to Use

question 67

Multiple Choice

A form of property ownership entitling the owner to use, possess, or dispose of the property as she chooses during her lifetime, and which on her death descends to her heirs is called

• A) fee simple absolute ownership.
• B) tenancy in common.
• C) joint tenancy.
• D) tenancy by the entirety.

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Definitions:

Present Value

The present value of a future amount of money or series of cash flows at a given rate of return.

Interest Rate

The percentage at which interest is paid by a borrower for the use of money they borrow from a lender.

Risk Averse

A descriptor for individuals or entities that prefer to minimize exposure to risk and avoid uncertain outcomes.

Risk and Return

The principle that potential return on investment rises with an increase in risk. Higher risk is associated with the greater probability of higher return and vice versa.