Which of the Following Is Not a True Statement

question 90

Multiple Choice

Which of the following is not a true statement?

• A)Real estate ownership represents one of the best hedges against inflation.
• B)Poor location can cause a piece of real estate property to go down in value.
• C)There are many factors to consider before investing in real estate.
• D)There is no reason to evaluate a real estate investment because real estate always increases in value sooner or later.
• E)Finding a buyer for a piece of real estate can be difficult if loan money is scarce.

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Definitions:

Split-off Point

The stage in a production process where joint products are identifiable or separable into individual products.

Avoidable Cost

An expense that can be eliminated if a particular decision is made, not incurred if a specific activity is discontinued.

Fixed Production Cost

The portion of total production costs that does not change with the level of output, including costs such as rent, salaries, and insurance.

Vertical Integration

The involvement by a company in more than one of the activities in the entire value chain from development through production, distribution, sales, and after-sales service.