Six Flags Entertainment Corp. is trying to acquire 300 acres of land to build a new amusement park in Miami. There are 150 houses and 2 strip malls on the land the company needs. Which of the following statements is most likely true regarding Six Flags' ability to buy the land and build the amusement park?
A) Some of the property owners might ask for more money than their property is worth and prevent the project from moving forward.
B) The transactions costs of bargaining with the current landowners is likely to be quite low.
C) The government would likely not use eminent domain in this situation since it involves a private corporation trying to acquire land from private landowners.
D) The land must be undervalued for a large corporation like Six Flags to want to acquire it.

Question

Quizplus · Accepted Answer

A) Some property owners might indeed ask for more money than their property is worth, which could complicate or prevent the project from moving forward due to increased costs or negotiation difficulties.