Catherine Buys and Sells Real Estate

question 235

Multiple Choice

Catherine buys and sells real estate.Two weeks ago,she paid $300,000 for a house on Pine Street,intending to spend $50,000 on repairs and then sell the house for $400,000.Last week,the city government announced a plan to build a new landfill on Pine Street just down the street from the house Catherine purchased.As a result of the city's announced plan,Catherine is weighing two alternatives: She can go ahead with the $50,000 in repairs and then sell the house for $290,000,or she can forgo the repairs and sell the house as it is for $250,000.She should

• A) keep the house and live in it.
• B) go ahead with the $50,000 in repairs and sell the house for $290,000.
• C) forgo the repairs and sell the house as it is for $250,000.
• D) move the house from Pine Street to a more desirable location, regardless of the cost of doing so.

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Definitions:

Constructive Conflict

A conflict that is managed and leveraged effectively to encourage diversity of thought, innovation, and problem-solving.

Superordinate Goals

Objectives requiring cooperation and collaborative effort among groups or individuals who might otherwise be in conflict.

Collaboration

Working jointly with others, especially in an intellectual endeavor, to achieve a common goal through sharing knowledge, learning, and building consensus.

Integrative Negotiation

Win-win negotiation that assumes that mutual problem solving can enlarge the assets to be divided between parties.