Question

Sam Payne is the CEO of Office Concepts, LLC (OCL), an ownership and property management company for general office space. Sam has just learned that a new interstate exit has been approved between two existing, major interchanges. Sam has anticipated the exit approval and has his eye on farmland that can easily be converted to commercial property once the exit is completed. Based on his expectations, Sam marketed and sold an existing OCL property. Sam's purpose in selling was to obtain ready cash, enabling him to act quickly should he negotiate a good price on the farmland.

Which of the following best describes Sam's motivation for selling?
a)Tax strategies
b)Restoring borrowing capacity
c)Anticipated changes in the market
d)Liquidity needs

Answer 1

Sam Payne sold a property to meet liquidity needs in order to quickly purchase farmland with expected increased value due to a new interstate exit.

Step-by-step explanation:

The motivation of Sam Payne, CEO of Office Concepts, LLC (OCL), for selling an existing property was chiefly to generate liquidity needs. By selling the property, Sam aimed to have ready cash on hand to act quickly and take advantage of a strategic opportunity to purchase farmland expected to increase in value due to the upcoming construction of a new interstate exit. This maneuver emphasizes Sam's proactive decision-making in anticipation of changes in the market, highlighting his ability to adapt to market conditions to potentially benefit his company.