An Office Building Is on a Lot Valued at $50,000

question 24

Multiple Choice

An office building is on a lot valued at $50,000. It would cost $150,000 to replace the building structure today, but the improvements have depreciated 10%. Using the cost approach, what is the value of the property?

• A) $50,000
• B) $152,000
• C) $160,000
• D) $185,000

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Definitions:

Management's Commitment

The dedication and proactive involvement of a company's management team in implementing and achieving strategic goals, often reflecting the organization's values and culture.

Promotional Budget

The allocation of financial resources dedicated to marketing, advertising, and promoting a product or service.

Deceptive Pricing

A misleading practice where prices are manipulated or hidden to make products appear cheaper than they actually are.

Predatory Pricing

A competitive strategy where a business sells a product or service at a very low price with the intention of driving competitors out of the market.