The Homebuilding Industry Is Not Affected by Such Macro-Influences as

question 104

Multiple Choice

The homebuilding industry is not affected by such macro-influences as

• A)changes in mortgage interest rates, rules, and regulations that make it easier/harder for homebuyers to obtain mortgages.
• B)trends in household incomes and buying power.
• C)the distinctive competences of incumbent firms.
• D)disasters and other unanticipated events in the natural environment.
• E)shifting preferences of families for renting versus owning a home, and/or homes of various sizes, styles, and price ranges.

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Definitions:

Dividends

Funds dispensed by a business to its shareholders, allocating a fraction of the company's financial gains to them.

Operating Cash Flow

The cash generated from the normal operations of a company, reflecting the amount of cash earned from the production and selling of goods and services.

Depreciation Expense

The allocated portion of the cost of a fixed asset to expense over the asset's useful life to represent its use and wear and tear over time.

Interest Expense

The financial charge an organization incurs from taking out loans.