Choose the One Most Appropriate Answer for Each

question 14

Multiple Choice

Choose the one most appropriate answer for each.
-a right, for a given period of time, to buy, sell, or lease property at present price and terms

• A)adjustment period
• B)adjustable rate mortgage (ARM)
• C)blanket mortgage
• D)blended-rate loan
• E)buy-down mortgage
• F)carryback financing
• G)contract for deed
• H)equity mortgage
• I)equity sharing
• J)graduated payment mortgage
• K)interest rate cap
• L)negative amortization
• M)option
• N)overencumbered property
• O)package mortgage
• P)payment cap
• Q)reverse mortgage
• R)sale and leaseback
• S)subordination
• T)wraparound mortgage

Calculate contribution margin per unit, contribution margin ratio, and variable expense ratio.

Forecast net operating income based on changes in sales volume, selling price, variable costs, and fixed costs.

Calculate the margin of safety in dollars and percentage.

Apply changes in the business environment (e.g., sales incentives, price changes, advertising budget adjustments) to predict their effect on net operating income.

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Definitions:

Contestable

A market characteristic where there are no barriers to entry or exit, allowing potential competition to challenge existing firms, keeping prices competitive.

Market

A market is any structure that allows buyers and sellers to exchange any type of goods, services, and information.

Highly Concentrated

A market or industry situation where a small number of firms hold a large market share, potentially leading to less competition.

Smart Phone Industry

The sector of the economy that is involved in the development, production, and sale of smartphones.