When Is Seller Financing NOT Used

question 17

Multiple Choice

When is seller financing NOT used?

• A) The seller desires to take advantage of the installment method of reporting the gain from sale
• B) The buyer does not qualify for long term mortgage credit because of low down payment or difficulty meeting monthly payments
• C) Third-party mortgage financing is less expensive or easily available
• D) The seller desires to artificially raise the price of the property by offering a lower-than-market interest rate on the mortgage

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Definitions:

Total Cost

The complete sum of all expenses incurred in the production of goods or services, including both fixed and variable costs.

Output

the total amount of goods or services produced by a company, industry, or economy in a given period.

Average Variable Cost (AVC)

The total variable costs divided by the quantity of output produced, representing the variable cost per unit of output.

Marginal Cost Curve

A graphical representation showing how the cost of producing one more unit of a good changes as the production volume changes.