What are some motives for divestitures?

Q: Who should authorize disposal of fixed assets?

A: Disposal of Fixed Asset: Disposal of fixed asset is a process of selling off the asset whose…

Q: What is the purpose of valuation in terms of voluntary assessment?

A: Every organization needs to know the worth value of its assets, business or company.  In other words…

Q: What has been the rationale for LVMH acquisitions

A: Question is based on the concept of business management

Q: Explain Quitclaim Deed?

A: Quitclaim Deed: Quitclaim Deed is also called as non-warranty deed. A quitclaim deed is considered…

Q: Explain the Appraisal Process and Approaches to Valuation?

A: Buyers who intend to buy a property often obtain it on loan. Lenders provide the loan on security of…

Q: What is advantages and disadvantages of centralization and decentralization? -Explain Effects of…

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Q: What is meant by depreciable base? How is it determined?

A: Depreciable base: The word depreciable base is used to depict the value that is divided by the…

Q: what is disinvestment ?

A: Disinvestment:  Disinvestment means selling off the assets such as manufacturing plant, a division,…

Q: Define the term depreciation recapture?

A: Depreciation recapture is the earnings acknowledged by the offer of depreciable capital assets that…

Q: why does fair value seeking for an acquisition?

A: Reasonable worth is a term with a few implications in the monetary world. In contributing, it…

Q: Which decision is called the abandonment decision?

A: Answer: The decisions relating to the company that provides flexibility to discontinue the project…

Q: Why would refinancing be an alternative to sale of the property?

A: Individuals always buy the properties taking the mortgage because payment for buying the property…

Q: When valuing specific properties investors must consider?

A: Valuation of the real estate properties includes the estimation of the rental payments that are…

Q: What kind of acquisition is it?

A: Mckinsey divided the types of acquisition based on the purpose of such acquisition. 'Acquisition for…

Q: What are the primary considerations that should be made when refinancing?

A: Individual consider refinancing of the loan because of the following reasons: Interest rates have…

Q: Explain Valuation and how can it be useful for determining

A: Valuation is to know how much is assets worth according to market or deciding fair value of assets.…

Q: Explain term Foreclosure?

A: Foreclosure:

Q: Define and discuss survivorship bias and selection bias, and how they affect reported returns of…

A: Survivorship bias is a type of bias in which a person has a tendency to view the performance of…

Q: How do the passive losses rules and the at risk rules work in conjunction to limit losses?

A: Passive losses: These are the losses that take place when expenses exceed the income in the passive…

Q: What is the reinvestment rate assumption when using MIRR?

A: Modified Internal Rate of Return: This method is used to rank investments or projects for an…

Q: What are the limitations of TCE approach to the make or buy decision?

A: TCE Approach is Transaction Cost Economics Theory. It means an activity should be performed within…

Q: Which are the Limitations on Property Rights?

A: Property rights are the rights given to the owner as per law to hold or own a property. A property…

Q: Is the nature of the gainor loss considered ordinary or long-term?

A: Ordinary gain or loss means any income which doesn't result as Capital gain or loss. Capital Gain or…

Q: What is the difference between depreciation and depletion?

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Q: What is breakup value?

A: Answer: Break-up value is nothing but a valuation that suggests the business will be split into…

Q: What is eviction?

A: Eviction as per law is the process of civil nature in which court allows landlord to legally remove…

Q: Explain the Redemption process?

A: The question is based on the concept of redemption, which is mainly used for repayment of fixed…

Q: Explain how differing assumptions about capitalization rate , reversion value, and highest and best…

A: Property is referred as an item, where the business or person used to have the legal title over.…

Q: When should the defender be replaced?

A: When should the defender be replaced?

Q: Explain Property Type Swap?

A: Answer: Swap alludes to exchange with another between the parties involved in one monetary…

Q: Why does the so-called distressed property situation exist?

A: Distressed property refers to those which have value less than the market value. This situation…

Q: Define devaluation

A: Currency- Currency is defined as money in terms of paper or coins which is issued by the government.…

Q: Explain Diversification by Property Type and Location?

A: The question is based on the concept of diversification in field of real estate investment.…

Q: What serious consequences occur in an inaccurate estimate of asset needs?

A: Estimates of assets:   It is approximate value of assets of original value of assets which is used…

Q: Explain The Auction Process?

A: An auction is the place or thing where potential buyers and seller gather to publicly bid for the…

Q: Methods and rules to be followed in case of reconstitution?

A: Solution- It is often noticed that a partnership firm undergoes restructuring. These changes are…

Q: Define divestiture

A: Introduction: A divestiture might happen when a business unit is thought to be redundant afterward…

Q: Explain Depreciable Property?

A: Accordance with the IRS (internal revenue service) rule, any asset which is eligible for the…

Q: Give reasons why depreciation methods are useful?

A: Depreciation: It is the reduction in the value of an asset due to factors like normal usage and…

Q: Explain Alternatives to Foreclosure?

A: Assets can be mortgaged by borrower with the lender to secure debt. Foreclosure is a process…

Q: What would the result of Capitalizing the purchase cost over time?

A: Capitalized Cost: A type of expense that is added or included in the cost basis of a non-current…

Q: Which are the Sources of Information for Identifying Distressed Properties?

A: A property is termed as "Distressed" if the loan value is higher than the offer price. A property…

Q: Explain Depreciation Methods?

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Q: Explain Friendly Foreclosure?

A: Meaning of foreclosure: Foreclosure is the formal method in which a moneylender assumes possession…

Q: What is depreciation? What are the different methods, and when would each be appropiate?

A: Depreciation is the term related with the usage of long lived assets. This term implies the…