The Two Most Important Determinants of the Classification of an Office

question 1

Multiple Choice

The two most important determinants of the classification of an office property are age and obsolescence. Which of the following classes includes office buildings that are older and reasonably maintained, but are below current standards for one or more reasons?

• A) Class A office
• B) Class B office
• C) Class C office
• D) Investment grade property

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Definitions:

Employee Salaries

Compensation paid to employees for their labor, typically in the form of a wage, salary, or commission.

Pro Forma Statements

Financial statements prepared using hypothetical scenarios or assumptions to project future financial performance.

Future Operations

Planning and actions taken regarding a company's or organization's activities, strategies, and resources intended for the foreseeable future.

Cash Flow

The total amount of money being transferred into and out of a business, especially affecting liquidity and overall financial health.