Construction comprises of building, alteration, and/or repair.

Study for the Audit of Construction and Real Estate Industry Test. Review multiple choice and flashcard questions with hints and detailed explanations. Prepare yourself effectively for your exam!

Multiple Choice

Construction comprises of building, alteration, and/or repair.

Explanation:
Construction focuses on the physical work to create or modify a structure: building, alteration, and/or repair. Building means constructing a new structure from the ground up. Alteration involves changes to an existing structure that modify its size, shape, or function. Repair covers restoring or fixing components to bring the structure back to proper condition. These are the actual construction activities. Zoning and permits relate to regulatory approvals and planning steps that precede or accompany construction, not the construction work itself. Leasing, marketing, and managing describe post-construction property operations. Financing and budgeting deal with funding and cost planning, not the hands-on construction activities. So the description that lists building, alteration, and/or repair directly matches what construction involves.

Construction focuses on the physical work to create or modify a structure: building, alteration, and/or repair. Building means constructing a new structure from the ground up. Alteration involves changes to an existing structure that modify its size, shape, or function. Repair covers restoring or fixing components to bring the structure back to proper condition. These are the actual construction activities.

Zoning and permits relate to regulatory approvals and planning steps that precede or accompany construction, not the construction work itself. Leasing, marketing, and managing describe post-construction property operations. Financing and budgeting deal with funding and cost planning, not the hands-on construction activities. So the description that lists building, alteration, and/or repair directly matches what construction involves.

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