You Are Considering the Purchase of a Commercial Building That

question 57

Multiple Choice

You are considering the purchase of a commercial building that is nearby a comparable property that recently sold for $275,000. What is the cap rate for the property you are considering if the comparable property has an NOI of $35,000?

• A)10.94%
• B)12.73%
• C)13.49%
• D)16.81%
• E)19.71%

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Definitions:

Socialist Legal System

A type of legal system often found in socialist states where the law is used as a tool to effect social change and uphold the ownership and distribution means by the community as a whole.

Foreign Corrupt Practices Act

A U.S. law that prohibits companies and their individuals from bribing foreign officials to gain a business advantage.

Bribes

Payments or gifts given with the intention of influencing the actions of an individual in a position of power or authority.

Foreign Government Officials

Representatives or employees of a government from a country other than one's own, including diplomats, ministers, and other officials.