Module 17

Module 17 contains an overview of investment analysis and business opportunities, including general business conditions that affect return, advantages and disadvantages of investing in real estate, various definitions, ratios that evaluate investments, taxes on investment property, business brokerage, and selling a business.

When you finish reading this module you will be able to:

  1. Distinguish among the risks associated with general business conditions and that affect return.
  2. Identify the advantages and disadvantages of investing in real estate.
  3. Define leverage, potential gross income, effective gross income, net operating income, fixed expenses, variable expenses, and reserve for replacements.
  4. List the ratios that evaluate aspects of the investment.
  5. Describe the tax consequences of investment property ownership and sale.
  6. Describe the characteristics of business brokerage.
  7. Describe the types of expertise required in business brokerage.
  8. Distinguish among the methods of appraising businesses.
  9. Describe the steps in the sale of a business.

 

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