Under a Three-Year Lease That Has Expired, If the Tenant

question 19

Multiple Choice

Under a three-year lease that has expired, if the tenant remains in possession and the owner accepts rent payments, the lease:

• A) is renewed for three years
• B) is canceled
• C) becomes a month-to-month tenancy
• D) is renewed for one year

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Definitions:

Reverse Stock Split

A corporate action in which a company decreases the number of its existing shares, which increases the share price proportionally, often done to meet stock exchange listing requirements.

Equity

The value of ownership interest in a company, calculated as the difference between its assets and liabilities.

Share Repurchase

A program by which a company buys back its own shares from the marketplace, reducing the amount of outstanding stock.