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Business is concerned with the study of organizations, entities or commercial activity that involves selling goods or services for a profit.

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in BusinessĀ·
25 Sep 2021

A. Mini-case: Workden
Founded in 2018 by Steven Roulac, Workden is a co-working organization. What separates it from its
competitors is its approach to co-working. Unlike its competitors, it does not simply rent out unused office
space. Instead, it finds and curates productive workspace communities by partnering with local business
owners who have unique spaces that are empty during the day. Workden sells to both individual customers
and large organizations. Individual customers can select one of three options: a day pass, a 5-day bundle, or
an unlimited monthly pass. Prices range from $9.99/day to $99.99/month. With each option, they have access
to all spaces. These customers can use their passes at their own discretion. Large organizations can contact
Workden directly for a more customized service offering. Workden will work on a specific solution for
businesses regarding the number of seats, pricing, amenities, etc.
A Coworking Spaces Global Market Report 2020 shows that the global coworking spaces market is expected
to decline from $9.27 billion in 2019 to $8.24 billion in 2020. Workdenā€™s partners have faced many hurdles.
First, the fear of contagion has led to fewer people visiting their locations, resulting in a loss of revenue.
Moreover, capacity restrictions provide less opportunity for both Workden and its partners to maximize their
available space. Socially distanced workstations are mandatory. While this may change moving forward, it
should be considered in the short-term. There are many opportunities for Workden to not only improve its
current service offering, but also to expand into new locations but still the COVID situation renders their task
highly difficult due to their lack of knowledge of how this virus will impact the usage of coworking spaces..
Steven wants a scalable option that Workden can use across its entire network. Specifically, he wants to
maintain the uniqueness of each location, but have the same Workden branding and ā€œfeelā€.
Case Questions
1. Explain how Workden generates profit using your knowledge and the discussion in the case. (5 points)
2. Identify and describe two distinct market segments that Workden can serve and provide the
Segmentation variables. (5 points)
3. Explain the idea of uncertainty in business and illustrate it using details from the case above. (3 points)
Suppose you are the owner of Workden.
4. What is the novel idea you would introduce to overcome COVID-19 effect? (Any option would be
acceptable) (2 points)

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in BusinessĀ·
27 Aug 2021

QUESTION 1

  1. A term and reversion scenario is one which:

The freehold property is let at full market rent

The freehold property is subject to an existing lease at a rent other than the current full market rent

The freehold property is subject to annual renewal lease

Ā 

QUESTION 2

  1. Your house is worth $750,000 today. Past records show that price increases at an average annual rate of 8%.

What will be the value of your house after 10 years?

$1,836,259, Say, $1.84 million

$1,542,888, say, $1.54 million

$1,782,350, say, $1.78 million

$1,619,193, say, $1.62 million

Ā 

QUESTION 3

  1. Which of the following is the Years Purchase formula for a time limited income valuation?

i/[(1+i)n ā€“ 1]

[1 ā€“ (1/(1+i)n )]/i

i/[1 ā€“ (1/(1+i)-n)]

1/(1+i)n

Ā 

QUESTION 4

  1. A property valuation is:

An exact price determination of a property

An estimate of the market value of a property

The mortgage value of a property

A guaranteed price of a property

Ā 

QUESTION 5

  1. Market value is assessed on the basis of:

The existing use value of the property

The value of the property on the transaction date

The amount that a bank will lend to a borrower

The highest and best value of the property

Ā 

QUESTION 6

  1. For the valuation of a freehold property, you have gathered the following information.

Gross rental $95/mĀ²

Outgoings $20/mĀ²

Capitalisation rate 8%

Area of the property 2000mĀ²

What is its market value?

$1.665 million

$2.875 million

$1.875 million

$1.345 million

Ā 

QUESTION 7

  1. After analysing the market evidence, the market value of the subject property equals

to the average value all sales evidence.

True

False

1 points

QUESTION 8

  1. For an ordinary valuation, the date of valuation is:

The date of inspection of the property

The commencement date of the financial year

The date specified in a legislation

The date of receiving clientā€™s instruction

Ā 

QUESTION 9

  1. Valuation of industrial properties is based on:

$/mĀ² net lettable area (NLA)

$/mĀ² gross building area (GBA)

$/mĀ² usable area

QUESTION 10

  1. Analyse the following property information:

Sale price $200,000

Land value $120,000

Replacment cost (new) $145,000

Age of property 12 years

What is the annual percent depreciation of the property?

3.74%

3.83%

4.25%

2.78%

Ā 

QUESTION 11

  1. Which of the following is not an office grading in Australia?

Grade D

Grade B

Premium

Grade E

Grade A

Grade C

Ā 

QUESTION 12

  1. Which of the following is not a consideration for the choice of valuation method?

The interest to be valued

The date of valuation

The purpose of the valuation

Availability of market evidence

Ā 

QUESTION 13

  1. Your client is entitled to take over a freehold property after 5 years. The full market

rent of the property is estimated to be $80,000 net and yield of similar property is

8%. Opportunity cost rate is 5%

What is the value of the interest?

$783,526, say, $784,000

$754,835, say, $755,000

$942,870, say, $943,000

$825,573, say, $826,000

Ā 

QUESTION 14

  1. A motel with the following average annual figures in the accounts was recently sold for

$2.6 million.

Gross earning $2,250,000

Wages, etc. 400,000

Food, drinks, etc. 600,000

Advertising, etc. 250,000

Electricity, gas, phone, etc. 150,000

Insurance, repairs, etc. 100,000

Tenant's share 350,000

What is the capitalisation rate of this property?

13.36%

15.38%

14.45%

12.38%


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