Which of the Following Statements Is TRUE

question 27

Multiple Choice

Which of the following statements is TRUE?

• A)A tenancy at will usually has a fixed duration of one month.
• B)A tenancy at sufferance does not require a contractual agreement of any sort between the parties.
• C)The usual notice period for a tenancy at sufferance is one week.
• D)A specific amount of money,technically known as "rent," must be paid under every type of lease,including a periodic tenancy,a tenancy at will,and a tenancy at sufferance.
• E)If land is subject to a life estate,then a lease may be granted by the person who owns the remainder or the reversion,but not the person who owns the life estate itself.

---

Definitions:

Fixed Expenses

Expenses that do not fluctuate with changes in production level or sales volume, such as lease payments, insurance, and property taxes.

Margin of Safety

The difference between actual or expected sales and the break-even sales, measured to assess the risk of incurring losses.

Contribution Margin

The amount by which sales revenue exceeds variable costs, indicating how much contributes to covering fixed costs and generating profit.

Capital Intensive

Describes industries or businesses that require large amounts of investment in heavy machinery, equipment, or other capital assets to produce goods or services.