The Choice of Which Method to Use in Constructing the Contracted

question 12

Multiple Choice

The choice of which method to use in constructing the contracted rental rate can also be impacted by the type of property being leased.With which of the following property types would one expect to see a percentage rent method used?

• A)Apartment
• B)Office
• C)Industrial
• D)Retail

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Definitions:

Credit Sale

Transactions where goods or services are sold and payment is received at a later date.

Monthly Interest Rate

The interest rate applied to a loan or credit balance on a monthly basis.

Variable Cost

Expenses that vary in relation to the amount of product or service generated by a company.

Sales Price

The final amount of money charged for a product or service, or the value that consumers are willing to pay.