Large wholesale and retail buyers typically: D) buy most of their products as straight rebuys. 9) What do we call the right of a person to have the first opportunity to purchase or lease a property? A) macrosegmentation b) 5 percent of the loan amount. 43) Which of the following statements is TRUE about the five forces identified by Michael Porter that determine the intrinsic long-run attractiveness of a market or market segment? The difference in assessed fees is about $4,000 . A company reports pretax accounting income of $10 million, but because of a single temporary difference, taxable income is only$7 million. 9) Which of the following statements about Gen Xers is TRUE? 6) Mark earns $185,000 a year and he pays $2,200 per month for a rent-stabilized apartment. What should Jake do? Customers prefer a transactional orientation when there are few alternative offerings from suppliers. E) micro, Answer: B d) Involuntary conveyance of title by statutory rules of descent. c) A certificate issued by the property owner that indicates that the building is in proper condition to be occupied. A) single-segment concentration c) implied contract. d) denied. a. trust. #7. a) The lender calculates what's owed and tells the buyer what to bring. The primary difference between an open listing and an exclusive agency agreement would be: A. the seller retains the right to sell the property himself and is not liable for a commission, B. the seller can list with as many brokerages as he wishes in the open listing, C. the exclusive agency agreement stipulates the firm is the only one that can sell the property and be entitled to a commission regardless of who sells it, even the seller, D. the seller can sell it himself in the exclusive agency agreement but is not allowed to sell it himself in the open listing without being liable for the commission, the seller can list with as many brokerages as he wishes in the open listing. B) segment identification B) purchasing approaches c) Sara can use a binder but not a sales contract. 2003-2023 Chegg Inc. All rights reserved. Which statement is TRUE in a market with a price ceiling? 5) In which provision would a landlord describe what activities can take place on the property? _____ centers on all activities directed toward establishing, developing, and maintaining successful exchanges with customers and other constituents. b) It's an invalid contract. When a business marketer demonstrates special skills in managing relationships with key customers or by developing innovative strategies with alliance partners, they are trying to create: ), a) The seller's share of $2,533.38 b) The buyer's share of $666.62 c) The seller's share of $2,525.76 d) The buyer's share of $674.24. d. a strategic alliance. 4) How is the interest on a ARM loan determined? a) It is common business practice. When dealing with money the rules all reference "banking" not business days. c) a payment cap. a) Draw Loan b) Banked Loan c) Bridge Loan d) Straight Loan. Does it make sense for a corporation to repurchase its own stock? a) Amanda has illegally commingled the earnest money with her own money. If the buyer backs out of the contract without good reason, the offer to purchase contains a printed clause that says the seller may keep the deposit as: a. equity. All agents in the transaction should facilitate the timely delivery of the property disclosure report to the buyer. Which statement is TRUE? 2) Fred reclaimed a foreclosed property by paying off owed amounts, including interest and costs? AACSB: Analytical thinking, 52) If married and unmarried women respond similarly to a sale on perfume, these hypothetical segments fail the ________ criterion for useful market segments. Given the following selected account balances of Delray Mfg., prepare an income statement for Delray Mfg. LO: 6.1: In what ways can a company divide a consumer or business market into segments? a. Hold both offers because he heard that a full-price offer is on its way. c. transactional A new Estimate of Sellers Proceeds, using the current offering price as the basis and an updated competitive market analysis, would be helpful. b) are less flexible than government-backed loans . A) attitude d) pay the purchase price for the property. 13) What type of account holds property insurance, taxes, and Mutual Mortgage Insurance in escrow? c. Transactional customers display less loyalty to a particular supplier and can easily switch part or all of their purchases from one vendor to another. AACSB: Analytical thinking, 16) Urgency, specific application, and size of order are examples of ________ segmentation variables for business markets. Fill out a separate, numbered counteroffer form. 9) Which of the following is a good example of a unilateral contract? What type of contract does Bill hold? b) In a sublease, the original tenant retains primary responsibility for performance of the original lease contract. What is important for the sellers to know about a counteroffer? c. Total cost of ownership e. (a) and (c) only. c. relationship commitment. A home's curb appeal is boosted by all of the following, except: a. mowing the lawn. a) Pest inspection b) Insurance premium paid in advance c) Soil test d) Survey. e. Only (a) and (b). A) undifferentiated b. The listing agent does not inform the selling agent of the defect and since the defect, is hidden, the selling agent does not discover or disclose the problem to the buyer. Loyal customers are far more profitable than price sensitive customers. b) Private mortgage insurance is available for FHA loans. d. All of the above. A) marketer resources Which statement is TRUE of a listing agreement? c) It is not voidable. Once Ricardo knew the fence was a material issue to the buyer he was bound to take some action. #2. a) both an instrument of conveyance and a contract. AACSB: Analytical thinking, 18) A marketer is interested in segmenting a business market on ________ if the marketer intends to segment the market based on industries and geographical areas to serve. D) segment profitability c) The tenant goes out of business. D) global segmentation 9) PMI loans made after July 1999 are now regulated by Federal law. a) Retail Level Lease b) Percentage Lease c) Reorder Lease d) Market Level Lease. 3) Which statement best defines the concept of "quiet enjoyment? d. satisfaction with the salesperson. C) It helps to build a loyal customer base but has no impact on a firm's intangible assets. 9) When a tenant agrees to pay all taxes, insurance, maintenance and repairs, that tenant has what kind of lease? b) a 3 percent down payment. Diff: 2 d. all of the above c) The borrower pays a fixed rate of interest. Why is it important to talk to the sellers about the buyers? This is an opportunity to assure the sellers that these buyers will appreciate and care for the home. The buyers have been pre-qualified by a lender. a. E) producing products that can be used in a variety of ways. 3) Which of the following locations is the least likely place to hold a closing? 5) Mike signed a rental agreement for his friend Norm. c) He has given due process. AACSB: Reflective thinking. By targeting mothers-to-be as future heavy users, producers of these products and services are segmenting consumers on the basis of ________. What is this law called? a) an index. Which of these is not a good thing to do when writing a counteroffer? a. b) neither an instrument of conveyance nor contract. a) The tenant fails to pay rent. 1) What is the seller's primary function at closing? C) segment profitability 2) Establishing and communicating the distinctive benefit(s) of the company's market offering for each target segment is called ________. D) A segment is attractive if it already contains numerous, strong, or aggressive competitors. b) A certificate issued by a HUD that indicates that the building is in proper condition to be occupied. A) measurable a) Marketable title b) Abstract of title c) Evidence of title d) Title commitment. E) short-term segmentation, Answer: A b. Value-added exchange A(n) _____ represents the products, services, ideas, and solutions that a business marketer offers to advance the performance goals of the customer organization. c) include all outstanding liens against the property. a) a survey of the property. D) segment "acid test" According to North Carolina Real Estate Commission Rules, all of the following are required to be part of a listing agreement, EXCEPT: Listing agreements and buyer broker agreements may not provide for an automatic extension of the agreement. Which of the following is true regarding the Residential Property and Owner's Association Disclosure Statement? _____ illuminates exactly what activities are associated with serving a particular customer and how these activities are linked to revenues and the consumption of resources. a) through verbal agreements. c. The current share of the wallet the firm has attained. 7) Which of the following is not an item that a buyer usually pays at closing? a) Act within a statutory period. E) actionable, Answer: B b) There must be evidence that a structural inspection has shown no evidence of pest infestation. B) substantial E) segment "acid-test", Answer: D Earnest money deposits, when paid in the form of a personal check given on an Offer to Purchase and Contract, must be deposited in an escrow account: A. no later than three banking days after acceptance of contract, B. no later than 72 hours after receipt of money, C. no later than three business days after receipt of the money, D. no later than 72 hours after acceptance of contract, no later than three banking days after acceptance of contract. a) a felony. b. personal property. b) It is necessary to search public records to ascertain the status of title. a) $12.87 b) $15.91 c) $23.22 d) $25.74. When organizational buyers consider changes from one selling firm to another, what are the two main categories of switching costs they consider? a) A borrower can reduce monthly interest rate payments over the life of the loan by getting private mortgage insurance. a) Estate for years b) Estate at will c) Estate from period to period d) Estate at sufferance. The listing agreement must be in writing at the time of the listing and the buyer brokerage agreement must be in writing prior to the submission of the buyer's offer. 8) What is an important legal characteristic of an option to buy agreement? b) It requires certain conveyance-related contracts to be in writing. Sam Seller lists his property with EX Realty. 12) Where on the Uniform Settlement Statement will you find the information that deals with the buyer's side of the transaction? Last year his rent went up 4% based on a 4% increase in the wholesale price index. A) segment "acid test" 8) Issues that are not covered in the purchase and sale agreement itself are usually dealt with. Rewrite whole paragraphs to ensure clarity. Effective machine life is only determined by the durability of the machine. Jerry agreed to what type of lease? a) Accounts Payable b) Accounts Receivable c) Impound Account d) Forward Account. c) have more forms than government-backed loans. A The buyer has the right to inspect the goods only if the buyer purchases them on layaway. b. Collaborative relationships are less likely to involve operational linkages between the buying and selling firms. AACSB: Analytical thinking, 50) If your assignment was to create a value proposition and product-price positioning strategy for each segment, based on the segment's unique customer needs and characteristics, you would be in which of the following steps of the segmentation process? 12) Paul will get the second quarter water bill at the end of June. The $20,000 is what type of mortgage? D) personal characteristics d) The real estate must be appraised by an approved FHA appraiser. d. the lost-for-good customer. 10 of 10 All of the following are true statements about goals except which one? c) when the loan-to-value ratio reaches 78 percent. LO: 6.2: How should a company choose the most attractive target markets? d. the cost of serving established customers usually increases. Once an offer has been accepted, the agent should do all of the following except which? C) operating variables b. Transactional exchange Transactions that are almost, if not entirely, void of a close, collaborative relationship: a) Amanda has illegally commingled the earnest money with her own money. Which of the following is not characteristic of the manufacturing sector in the United States? This is known as what type of account? The property owner should disclose the condition of the listed property or be subject to a 3-day rescission period on any contract formed. AACSB: Reflective thinking, 47) In the ________ step of the market segmentation process, the marketer determines which demographics, lifestyles, and usage behaviors make each needs-based segment distinct and identifiable. B) substantial The buyers love the landscaping improvements the sellers have made. 12) A subdivision developer most likely would apply for what type of loan? B) situational factors B) effectiveness of the suppliers b) It must use precise wording in a document. Which of the following statements about transactional relationships is(are) true? 1) In the event of default by the purchaser, the lender has the right to bring legal action through the courts to satisfy the debt. A) personal characteristics 6) Which of the following contracts must be in writing to be enforceable? 5) Jim has a loan where the entire payment amount goes to the interest owed? c) debits to the buyer. a) A parol contract b) A six-month lease c) A two-year lease d) An executory contract. 8) Money that the buyer or seller needs to pay at closing is called what? d) A lender can continue to collect PMI payments until the homeowner's equity reaches 25%. 10) Taxes on the property Buyer Alan is purchasing are $3,200 due on December 31. D) operating variables What type of loan does Jim hold? a) Hold Over Mortgage b) Advanced Mortgage c) Principal Mortgage d) Purchase Money Mortgage. b) will be a credit to the buyer. b) The first seller may sue the buyer for specific performance. d) contain a legal description of the property. e. Only (a) and (b). d) Wait a statutory period before they may take legal action. How would Grant_s lease at this time be classified? d) were paid in advance. #8. 7) A buyer submits an offer to a seller. A. it must contain a nondiscriminatory clause, B. it may be oral up to presentation of the first offer, C. it requires the seller to sell if a full price offer is made by a buyer, D. it can contain an automatic renewal clause if both parties agree to it in writing, it must contain a nondiscriminatory clause. c) open. This is an example of a. a) legal and binding contract. LO: 6.2: How should a company choose the most attractive target markets? Which of the following clauses is required by the NC Real Estate Commission to be contained within every listing agreement? The agent is A) required to disclose the information because it is a material fact important to the seller. D) switchers a. close Make sure all required disclosures have been done. (a manufacturer). A) individual Customer profitability b) The optionor must perform if the optionee takes the option, but the optionee is under no obligation to do so. What actions can the sellers take regarding the purchase offer? c. a) prepaid expenses. d. commission. D. The interest payment is always smaller then the amount allocated to the principal. #12. d) accrued expenses. 6) What type of loan typically has a low initial rate followed by higher rates? c) have more paperwork than government-backed loans. b) periodic estates. Price discrimination is indistinguishable from dumping. One offer is for $208,000; the other is for $200,000. d) require higher down payments than government-backed loans require. c) Brokers may not complete leases to which they are not a party. A continuing dialogue with customers. D) differentiable d) Interest is based on a selected economic indicator index. A) needs-based segmentation Once there is a valid and enforceable sales contract, death of the parties does not end that agreement. H0:=.20H_0: \pi=.20H0:=.20 versus H1:.20,=.025,p=.28,n=100H_1: \pi \neq .20, \alpha=.025, p=.28, n=100H1:=.20,=.025,p=.28,n=100. Business marketers track customer loyalty and retention because: a) A listing agreement b) A personal services agreement c) A sale contract d) An option to buy. a) Map coordinates b) Deed map c) Street address d) Survey map. a) Apportionments b) Debits & Credits c) Terms of Payment d) Exclusions. B) The basic aspects of business customer buying behavior tend to be quite similar in the U.S. and in international markets. 11) If a seller prepaid an insurance policy of $2,100 and the closing is set for March 15, using the 12-month/30-day method, what will the buyer owe the seller? 3) Mary has remained in her apartment two weeks past her move-out date, without any payment.