A real estate broker generally acts from a position of trust for the seller or buyer. This is described legally as a(n):
a. fiduciary relationship.
b. dual agency.
c. ostensible alliance.
d. independent contractor relationship.
Answer: a. fiduciary relationship.
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Which of the following statements is FALSE? In bankruptcy law
A) secured creditors who are not fully paid when the assets they have a security interest in are sold can then rank as preferred creditors for the unpaid amount B) lawyers and the trustee in bankruptcy are preferred creditors C) many unsecured creditors often receive very little of the amount they are owed D) landlords, the government and employees can all be preferred creditors E) the trustee can take back assets if the debtor sold them to keep them away from creditors' claims
When calculating the after-tax weighted average cost of capital (WACC), which of the following costs is adjusted for taxes in the equation?
A) The before-tax cost of equity B) The before-tax cost of debt C) The before-tax cost of preferred stock D) The after-tax cost of debt