Insofar as Real Estate Transaction Are Concerned, All of the Following

question 1

Multiple Choice

Insofar as real estate transaction are concerned, all of the following are true about environmental issues EXCEPT

• A) most commercial transactions require an environmental site assessment before an agreement can be reached
• B) almost all commercial lenders require a site assessment before committing to a loan
• C) it is illegal to convey property that harbors hazardous materials.
• D) usage of the land may be restricted if certain environmental conditions are present

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Definitions:

Inventories

Assets held for sale in the ordinary course of business, or in the process of production for such sale, or in the form of materials to be consumed in the production process.

Basic Earning Power

A measure of a firm's profitability and efficiency, calculated as earnings before interest and taxes divided by total assets.

Debt Ratio

The ratio of total debt to total assets, it measures the percentage of funds provided by investors other than preferred or common shareholders. Also called debt-to-assets ratio.

ROE

Return on Equity; a measure of the profitability of a business in relation to the equity.