When You Can Sell an Asset for More Than You

question 170

Multiple Choice

When you can sell an asset for more than you paid for it, you have earned a

• A) capital gain.
• B) dividend.
• C) retained earning.
• D) perpetuity asset.

---

Definitions:

Economize

The action of reducing expenditure or efficiently managing resources to avoid waste and save money.

Foreclose

The legal process by which a lender takes control of a property from a borrower due to failure to meet the repayment terms of a loan.

Defaulted

Defaulted refers to the failure to fulfill an obligation, especially the failure to repay a loan on time or to meet a contractual condition, leading to possible legal penalties or loss of rights.

Equity of Redemption

The right of a mortgagor to reclaim property on which a mortgage exists by repaying the debt before a foreclosure sale.