Why Would a Developer Be Willing to Manage a Completed

question 2

Multiple Choice

Why would a developer be willing to manage a completed project even after it has been sold?

• A) The developer knows the project better than other management companies and, therefore, could manage the property more efficiently
• B) The developer could profit from the lucrative management fees being charges by management companies
• C) Knowledge of the tenant's needs and the current leasing market might give the developer better insight with respect to future developments
• D) All of the above

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Definitions:

Average Collection Period

The average collection period is the average number of days it takes for a business to receive payments owed by its customers for sales made on credit.

Accounts Receivable

Funds that are owed to a company by its customers for products or services provided on credit.

Note Receivable

A written promise that one party will receive a certain amount of money from another party at a future date, categorized as an asset.

Honoured

In financial terms, referred to a cheque or payment that has been accepted and processed by the bank.