Alysa and Todd Purchased a Home in 1999 for $80,000

question 67

Multiple Choice

Alysa and Todd purchased a home in 1999 for $80,000 with no down payment. In 2004, they were able to refinance their mortgage on the home for $140,000. They reinvested $75,000 into the home, adding a new addition and making upgrades. In 2006, the couple sold the home for $320,000. What was the value of Alysa and Todd's equity in 2006?

• A) $250,000
• B) $180,000
• C) $240,000
• D) $60,000

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Definitions:

Family Businesses

Family businesses are owned and controlled by family members.

Succession Plans

Defined strategies or processes for identifying and developing new leaders who can replace old leaders when they leave, retire, or pass away.

First-mover Advantage

The benefit gained by the initial significant occupant of a market segment, often allowing for the establishment of strong brand recognition and customer loyalty.

Niche Manipulation

Niche manipulation refers to the strategic actions taken by organizations or individuals to shape or adapt their specific segment of the market to gain a competitive advantage.