Intro to Property Management Chapter 2
UPDATED ACTUAL Exam Questions and
CORRECT Answers
Wavelike movement of increasing and decreasing economic prosperity; four phases; expansion,
recession, contraction revival - CORRECT ANSWER - Business Cycle
properties used in a market analysis which are substantially similar to the subject building or
apartments - CORRECT ANSWER - Comparables
a financial study of the projected income from that property if suggested capital improvements
were implemented - CORRECT ANSWER - Comparative Income and Expense Analysis
a market condition in which available rental space is priced beyond the financial capabilities of
potential tenants - CORRECT ANSWER - Economic Oversupply
A long-term projection of estimated income and expense for a property base rental rate for that
type of building - CORRECT ANSWER - Five Year Forecast
Income determined by multiplying the amount of space in the building by the base rental rate for
that type of building - CORRECT ANSWER - Gross Rental Income
The financial and operational strategy for the ongoing management of a property, based on
market analysis, property analysis and owner's goals - CORRECT ANSWER -
Management Plan
regional and neighborhood studies of economic, demographic to determine supply and demand
and market trends - CORRECT ANSWER - Market Analysis
, A part of the management plan, an assessment of five factors in the market area of the subject
property. - CORRECT ANSWER - Neighborhood Analysis
A projection of income and expense for the operation of a property over a one-year period -
CORRECT ANSWER - Operating Budget
Ideal rent for specific type of unit in a defined market area; may need to be adjusted to reflect
pros and cons of subject property - CORRECT ANSWER - Optimum Rent
A study made to familiarize the manager with the nature and condition of a building, its position
relative to comparable properties, and its estimated income and operating expenses - CORRECT
ANSWER - Property Analysis
An expense category in the operating budget; monies set aside ffor replacement expenditures not
covered by insurance - CORRECT ANSWER - Reserve Funds
Market condition in which available rental space exceeds tenant demand - CORRECT
ANSWER - Technical Oversupply
A calculation of yearly costs of operation based on operating expenses from caparable properties
and the maintenance needs of the subject property - CORRECT ANSWER - Operating
Costs
Which of the following BEST describes a market? - CORRECT ANSWER - Exchange of
goods between buyers and sellers
The four phases of the business cycle are - CORRECT ANSWER - Expansion Recession
Contraction Revival
Long-term movements in the real estate industry may be __________________ those in the
general economy. - CORRECT ANSWER - shorter than
UPDATED ACTUAL Exam Questions and
CORRECT Answers
Wavelike movement of increasing and decreasing economic prosperity; four phases; expansion,
recession, contraction revival - CORRECT ANSWER - Business Cycle
properties used in a market analysis which are substantially similar to the subject building or
apartments - CORRECT ANSWER - Comparables
a financial study of the projected income from that property if suggested capital improvements
were implemented - CORRECT ANSWER - Comparative Income and Expense Analysis
a market condition in which available rental space is priced beyond the financial capabilities of
potential tenants - CORRECT ANSWER - Economic Oversupply
A long-term projection of estimated income and expense for a property base rental rate for that
type of building - CORRECT ANSWER - Five Year Forecast
Income determined by multiplying the amount of space in the building by the base rental rate for
that type of building - CORRECT ANSWER - Gross Rental Income
The financial and operational strategy for the ongoing management of a property, based on
market analysis, property analysis and owner's goals - CORRECT ANSWER -
Management Plan
regional and neighborhood studies of economic, demographic to determine supply and demand
and market trends - CORRECT ANSWER - Market Analysis
, A part of the management plan, an assessment of five factors in the market area of the subject
property. - CORRECT ANSWER - Neighborhood Analysis
A projection of income and expense for the operation of a property over a one-year period -
CORRECT ANSWER - Operating Budget
Ideal rent for specific type of unit in a defined market area; may need to be adjusted to reflect
pros and cons of subject property - CORRECT ANSWER - Optimum Rent
A study made to familiarize the manager with the nature and condition of a building, its position
relative to comparable properties, and its estimated income and operating expenses - CORRECT
ANSWER - Property Analysis
An expense category in the operating budget; monies set aside ffor replacement expenditures not
covered by insurance - CORRECT ANSWER - Reserve Funds
Market condition in which available rental space exceeds tenant demand - CORRECT
ANSWER - Technical Oversupply
A calculation of yearly costs of operation based on operating expenses from caparable properties
and the maintenance needs of the subject property - CORRECT ANSWER - Operating
Costs
Which of the following BEST describes a market? - CORRECT ANSWER - Exchange of
goods between buyers and sellers
The four phases of the business cycle are - CORRECT ANSWER - Expansion Recession
Contraction Revival
Long-term movements in the real estate industry may be __________________ those in the
general economy. - CORRECT ANSWER - shorter than
