Which of the Following Refers to the Risk Real Estate

question 11

Multiple Choice

Which of the following refers to the risk real estate investors face stemming from changes in general economic conditions?

• A)Financial risk
• B)Liquidity risk
• C)Environmental risk
• D)Business risk

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Definitions:

Cost of Sales

Direct costs attributable to the production of the goods sold by a company, including material and labor costs.

Inventories

The complete list of items such as property, goods in stock, or the contents of a building.

Accounts Payable

The amounts due by a company to its suppliers or creditors for goods and services received but not yet paid for.

Net Cash Inflow

The difference between the cash received and cash expended in a given period, resulting in an increase in cash holdings.