Answer:
Lower.
Explanation:
The capitalization rate is mainly used in real estate and is a measure of the rate of return on a property, based on the net operating income it is expected to generate.
Johnson in appraising two parcels of property, leased one to the government for use as a post office while the other parcel of property, is leased to a private owner for use as a hardware store. Having the knowledge that the parcels have recently started long-term leases. The capitalization rate of the post office property used by the government as compared to the capitalization rate of the hardware store property used by the private owner will be lower.
The capitalization rate of the post office property would be lower because, real-estate investors will not expect much returns on the investment as it's a less risky investment. The post office is less likely than a hardware store to run out of business or go bankrupt by virtue of being a governmental agency or public company.
Hence, the hardware store will need a higher capitalization rate in comparison with post office property.
Managers have a tendency to let their programmed activities overshadow their nonprogrammed activities because of Gresham's law of planning. Gresham's law was developed by Thomas Gresham and it focuses mainly on economics, not the planning side. The main focus of the law is that bad money will drive out good.
Answer:
115,000 chairs
Explanation:
Calculation to determine How many of the chairs that were started were also completed during February
Using this formula
Chairs started and Completed=Beginning chairs production-Ending chairs production
Let plug in the formula
Chairs started and Completed=140,000 chairs- 25,000 chairs
Chairs started and Completed= 115,000 chairs
Therefore The numbers of chairs that were started and were also completed during February will be 115,000 chairs
