In Which One of the Following Approaches Would NOI Play

question 47

Multiple Choice

In which one of the following approaches would NOI play an integral role in determining the value of an investment property?

• A)real property approach
• B)income approach
• C)cost approach
• D)real estate investment approach
• E)sales comparison approach

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Definitions:

Free Market

An economic system where prices for goods and services are determined by the open market and consumers, in which the laws and forces of supply and demand are free from any intervention by a government or other authority.

Entrepreneur

An individual who, instead of working as an employee, runs a small business and assumes all the risks and rewards of a given business venture.

Earn A Profit

The process of making financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something.

Charging Interest

The act of lending money or capital with the expectation of receiving payment back plus additional money, known as interest, which serves as the cost of borrowing.