Stuart Michelson Has Invested in Several Pieces of Real Estate

question 96

Multiple Choice

Stuart Michelson has invested in several pieces of real estate.Which one of the properties that Stuart owns would be considered commercial real estate?

• A)4 bedroom home that he does not rent out
• B)20 acre tract of farm land that is sitting idle
• C)fourplex that he rents to college students
• D)100 acres of land in the mountains that he hopes to subdivide and sell as residential lots
• E)all of the other answers

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Definitions:

Obsolescence Concerns

Worries related to a product or system becoming obsolete or outdated, leading to a potential decrease in its value or utility.

Reduce Uncertainty

The action or practice of making a situation or outcome more predictable or less ambiguous.

Leasing

A contractual agreement where one party, the lessor, allows another party, the lessee, to use an asset for a specified period in exchange for periodic payments.

Temporary Basis

A condition or status applied for a limited time period, often used in finance to describe temporary adjustments or measures.