Why Would a Developer Be Willing to Manage a Completed

question 2

Multiple Choice

Why would a developer be willing to manage a completed project even after it has been sold?

• A) The developer knows the project better than other management companies and, therefore, could manage the property more efficiently
• B) The developer could profit from the lucrative management fees being charges by management companies
• C) Knowledge of the tenant's needs and the current leasing market might give the developer better insight with respect to future developments
• D) All of the above

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Definitions:

Selling Price

The price at which goods or services are offered for sale to customers.

Cost

The value of the expenses incurred in the production or acquisition of a good or service, including materials, labor, and overheads.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, culminating in net income or loss.

Net Income

The concluding profit margin of a company after deducting all operational expenditures and taxes from its income.