Your client, whose core business is selling groceries, owns a shopping mall in the heart of town. Recently the local government has announced that a new Light Rail Transit station will be built opposite the mall. With the new development, you are of the opinion that the mall cannot be valued accurately at historical cost. You have proposed that they engage a property valuation expert to revalue the property. Your client wants to know why you can’t do the estimate yourself as “accountants are all experts in figures”.
|
The client's contention is incorrect with respect to accountants. Being an accountant opens up a lot of avenues basis which a person has to obtain expertise in his preferred field. One such avenue is Property Valuation. |
| A property valuation is an inspection carried out to help determine the current market value of a property. |
| Property valuation typically seeks to determine fair market value, the price at which a knowledgeable seller willingly sells her property and a knowledgeable buyer will willingly purchase it. In other words, it assumes both parties have all the relevant information and neither are forced to buy or sell. Fair market value is not always equal to the sales price |
|
Property valuation lies upon four foundational pillars : 1. Demand - the magnitude of interest and buying power in the market for purchasing property. 2. Utility - the ability of the real estate to satisfy the use or need of prospective purchasers. 3. Scarcity - recognizes that there's a limited supply of real estate. 4. Transferability - the ease at which a parcel of real estate can legally be transferred to a new owner. |
| Therefore, it requires a special branch of study and expertise to be able to advise regarding the cost aspects of a property |
Your client, whose core business is selling groceries, owns a shopping mall in the heart of...
Business Ethics Case Study: Discuss the important ethical issues in this case. In your response examine the ethical issues in this case especially from the viewpoint of the consumer. In your response, please identify and evaluate the systems (if any) that were put into place to regulate the product, protect consumers, and ensure corporate compliance. Please use the text box of this journal link to enter your response (minimum 200 words) for the case study. CASE STUDY 7.1 Hazardous Homes...
Please read the article and answer about questions. You and the Law Business and law are inseparable. For B-Money, the two predictably merged when he was negotiat- ing a deal for his tracks. At other times, the merger is unpredictable, like when your business faces an unexpected auto accident, product recall, or government regulation change. In either type of situation, when business owners know the law, they can better protect themselves and sometimes even avoid the problems completely. This chapter...