18-38.Instead of Buying Land Outright Developers May Prefer

question 26

Multiple Choice

18-38.Instead of buying land outright developers may prefer:

• A) to use subdivision trusts
• B) to use partial releases
• C) to use release patterns
• D) to use options to purchase

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Definitions:

Subordinated Debentures

Bonds that have a lower priority than other debt obligations in case of liquidation, often carrying higher risk and yield.

Bonds

Fixed income investments where an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period at an interest rate.

Promissory Notes

Written promises to pay a specified sum of money to a certain entity on demand or at a defined future time.

Amortized Debt

A loan that is paid off over time through a series of fixed, regular payments that cover both principal and interest.