There Are a Number of Ways That a Developer Can

question 12

Multiple Choice

There are a number of ways that a developer can finance the establishment of site control, each with its own advantages and disadvantages. Which of the following methodologies calls for only the initial land rent to be paid out before development actually gets under way?

• A) Joint venture
• B) Option
• C) Contract for deed
• D) Ground lease

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Definitions:

Debit Column

The left side of a ledger account where increases in assets and expenses, or decreases in liabilities, equity, and revenues are recorded.

Classified Balance Sheet

A balance sheet that categorizes assets as current assets or plant and equipment and groups liabilities as current or long-term liabilities.

Creditors

Individuals or institutions that lend money or extend credit to others.

Information

Information refers to data that is processed, organized, and structured or presented in a given context to make it meaningful and useful.