Real Estate Brokerage: Practice Exam

Jill is selling her property and hired David as her agent. David brings another client, Kirk, to see the property, which Kirk is interested in purchasing. What kind of agent is David acting as in this scenario? A buyer's agent A dual agent A seller's agent A sub-agent

A dual agent

When comparing a leader to a manager, which of the following traits or actions is more indicative of a manager rather than a leader? Being people-focused Establishing a vision and strategy Establishing policies and procedures Taking risks and seeking change

Establishing policies and procedures

One of the most effective ways to lead is to establish an environment of ______ respect. Employee Hierarchical Manager Mutual

Mutual

Which organization includes as part of its mission the goal of helping members become more profitable and successful? Minority Real Estate Professionals of America (MREPA) National Association of Hispanic Real Estate Professionals (NAHREP) National Association of Real Estate Brokers (NAREB) National Association of REALTORS® (NAR)

National Association of REALTORS® (NAR)

Olivia, the owner of Your Home Brokerage, develops a goal for all of her licensees: Increase sales by 15%. Is this a SMART goal? No, because it's not measurable. No, because it's not realistic. No, because it's not specific. No, because it's not time-based.

No, because it's not time-based.

When broker Avery reviews her transaction files, she learns that the average days on market for her firm's listings is around 59. However, the average days on market in her geographical region is 25. Which of the following factors could be the cause of this difference in average days on market? Accurate competitive market analyses Dissatisfaction with the brokerage Low inventory and high demand Poor property condition

Poor property condition

The staffing philosophy for a brokerage should be developed to support the _______. Brokerage's mission and goals Marketplace Needs of local licensees Personality of the sponsoring broker

Brokerage's mission and goals

Licensee Audrey was convicted of an antitrust violation. What is the maximum prison sentence she can serve? 10 years Five years No prison time Two years

10 years

Licensee Elise, an independent contractor, is completing paperwork for her affiliation with a new broker. Which of the following is she required to complete to work in this capacity? A W-2 A W-4 A W-7 A W-9

A W-9

Sarina's firm primarily uses electronic marketing communications, including emails, Twitter feeds, and Facebook posts. Which of the following marketing tools might receive special attention? A Facebook post carefully written to sound personalized A hand-written thank you note An email that appears to come directly from the supervising broker An invitation to view new listings on the firm's website

A hand-written thank you note

Beverly, a real estate licensee, doesn't represent either party to a specific real estate transaction. She merely helps the parties handle the paperwork. What role is Beverly taking in this transaction? A designated agent A dual agent A sub-agent A transactional broker

A transactional broker

What phase of the business life cycle is reached when a company has to lay off its employees and liquidate its assets to pay off debt? Death Decline Maturity Rebirth

Death

A brokerage's independent contractor agreements should include _______. An indication that the worker won't be treated as an employee A statement of benefits Information about approved working hours Specifics for overtime pay

An indication that the worker won't be treated as an employee

A business that's establishing a customer base and market presence is most likely in what stage of the business life cycle? Birth Death Maturity Midlife

Birth

Select the activity that would most likely help build brand recognition among your target audience. Attending local REALTOR® association meetings Defining and using a company look, including logo, style, and colors Sending an annual mailing to prospective buyers and sellers in your community Using different logos to represent the various branches of your firm

Defining and using a company look, including logo, style, and colors

The firm's target market information in the marketing plan includes which of the following? Average time on market Demographics Interest rate trends Inventory of homes

Demographics

Equal pay for equal work is a federal law that is ______. Applicable to all employers with 15 or more employees Applicable to all employers with 20 or more employees Codified in the Civil Rights Act of 1866 Enforced by the Equal Employment Opportunity Commission

Enforced by the Equal Employment Opportunity Commission

Which of the following describes the purpose of a formal chain of command? Centrally manages the organization Determines work to be completed Divides an organization into units Establishes a reporting structure

Establishes a reporting structure

Which of the following has the legal effect of preventing a person from making a claim based on her prior behavior or statements? Estoppel In rem proceeding Ratification Reaffirmation

Estoppel

Who's responsible for protecting the firm's reputation? Choose the best answer. Administrative staff Everyone in the firm Staff who interact with clients The sales staff

Everyone in the firm

A 100% commission plan is more often used with ______. All sales staff Experienced licensees New employees New licensees

Experienced licensees

Jerome noticed that more and more seniors were moving to his town. As a real estate broker, how might he capitalize on this trend? He could develop a niche for first-time homebuyers. He could develop a niche in serving seniors. He could have flyers printed in large print. He could hire senior citizens as office staff.

He could develop a niche in serving seniors.

Brokers can use many kinds of incentive to encourage the associates at their firms to better performance. Which of these choices would be the best strategy for a broker to use? Offering extra support in exchange for achieving production goals Offering money to top producers Recognizing individual accomplishments Using a variety of incentive programs

Using a variety of incentive programs

Martha is completing an addendum for her client. She should make sure that it's written ______. In block type In cursive Using legalese Using standardized language

Using standardized language

Marsha is reviewing a market analysis to help her determine the location of her new brokerage office. What data should she look for? The importance of walk-in business What current tenants pay for rent and utilities What current tenants pay for rent and utilities Where her target market spends their money

What current tenants pay for rent and utilities What current tenants pay for rent and utilities

Which of the following is an example of software? Hard drive Peripheral Scanner Word processing

Word processing

Which of the following is an example of an illegal tie-in arrangement? ABC Realty requires that all buyers who work with their company be qualified by ABC Mortgage company, an affiliated business. MNQ Realty offers the services of an affiliated business, with full disclosure of its business relationship. TUV Realty offers a variety of financing providers to potential clients. XYZ Realty requires all buyers who work with their company to obtain financing through XYZ Mortgage company.

XYZ Realty requires all buyers who work with their company to obtain financing through XYZ Mortgage company.

Which training delivery option is best when the topic for training involves skills that can be practiced with role-play between students? Instructor-led training Recorded webinar Self-paced computer-based training Video

Instructor-led training

Broker Hannah has advertised for a new administrative assistant. After receiving a number of applications, she's chosen those whose qualifications best match the job. What step is next in the hiring process? Interviewing Prescreening Recruiting Selection

Interviewing

A market with fewer competitors would mean that you would have a(n) ______ market share than in the same market with more competitors. Larger Overstated Smaller Understated

Larger

Bob Wolf, the firm's bookkeeper, doesn't interact with clients. His main responsibility is to manage the firm's escrow records. What's his responsibility in helping maintain the firm's reputation? Become a licensed sales agent so he can work with clients. Fill in when the receptionist goes to lunch. Maintain spotless escrow records. Share escrow account information with the firm's associates.

Maintain spotless escrow records.

Darrel wanted managing broker Ella to sign off on incomplete paperwork, claiming she knew he was "good for it." Why should Ella refuse? Brokers should never trust licensees. Darrel is her friend and he forgets things a lot. She needs to teach him a lesson. Managing brokers are responsible for their associated licensees' actions. She shouldn't, if she trusts Darrel.

Managing brokers are responsible for their associated licensees' actions.

Which factor should be considered when evaluating the competition in a given market area? GDP Market share New building permits Vacancy rates

Market share

Sonja is meeting with a hearing-impaired client for the first time. What should she do to comply with the Americans with Disabilities Act? Hire a recorder to capture everything that's stated in the first meeting. Hire a sign language translator to be present at the first meeting and all that follow. Inform the customer that he's required to hire a translator to be present at the first meeting and all that follow. Meet with the customer and offer to provide a sign language translator for future meetings and the signing of contracts.

Meet with the customer and offer to provide a sign language translator for future meetings and the signing of contracts.

Which generation is known as the social media generation? Baby boomers Generation X Generation Z Millennials

Millennials

Growing the firm by targeting a specific buyer profile to increase sales is an example of ______. Downsizing Expansion Niche management Vertical growth

Niche management

When thinking about diversity in a brokerage, cultural and ethnic differences are often what's meant. But another important consideration for a brokerage is diversity in ______. Attire Grooming Personalities Wealth

Personalities

Carlisle is Robin's unlicensed personal assistant. Which activity may Carlisle legally perform? Counseling clients on strategies Discussing terms Negotiating offers Placing an advertisement

Placing an advertisement

You've completed your budget, and it shows a projected net loss for the year. What should you do? Adjust your projected revenue so it exceeds expenses. Immediately slash spending so you can meet your budget. Obtain financing. Review projected expenditures and revenue to see if there are acceptable adjustments to be made.

Review projected expenditures and revenue to see if there are acceptable adjustments to be made.

Maury noticed that no one else in his market area was offering relocation services, so he added this to the many benefits he provided to his clients. What type of horizontal expansion did Maury do? Inorganic Operational Sector Service

Service

Which term means the growth of a business by offering services to a different niche or by offering a wide variety of services? Geographic expansion Inorganic growth Sector expansion Service expansion

Service expansion

Todd is opening a new brokerage firm that will target young, career-minded individuals who are interested in urban living. Of the following, which medium is best suited for this market? An outdoor billboard Collateral Social media Todd's blog

Social media

The first part of analyzing risk is to determine the ______ of the risk. Cause Likelihood Severity Source

Source

The income statement might also be called the ______. Cash expended statement Receipts statement Statement of fixed and variable expenses Statement of profit or loss

Statement of profit or loss

All real estate licensees in Texas must abide by the Canons of Professional Ethics and Conduct enforced by ______. REALTOR® associations The Texas Association of Real Estate Ethics The Texas Real Estate Commission TWCCRD

The Texas Real Estate Commission

Why shouldn't managing brokers bend the rules for their licensees? Select the best answer. It could set a precedent. It leads to dissention in the ranks. Licensees will take advantage of the situation. The broker's license is on the line.

The broker's license is on the line.

Sherman is a listing agent. At what point is he no longer obligated to present offers to his seller client? He has a signed contract. He has received his commission. His client asks him to stop. The sale has closed.

The sale has closed.

Training for licensees will be most effective when ______. The class is held in-person rather than online The instructor gives out prizes to associates who answer quiz questions correctly The training has a required "seat time" The training topic and benefit to the associates is clearly defined and relevant to them

The training topic and benefit to the associates is clearly defined and relevant to them

Which component of a business plan document is written last but is likely the first thing lenders and investors will read? Company description Executive summary Market analysis Objectives, goals, and strategies

Executive summary

Rachel is subject to court-ordered supervision due to an antitrust violation. This oversight may continue for as long as ______. 10 years Five years She remains in the state where the violation occurred She's licensed

10 years

What would be considered a strength for a business in a SWOT analysis? A deficiency of skills or traits needed to achieve a business goal An external factor that could be exploited for business gain An external factor that could restrict or inhibit business A skill or trait that is aligned with a business's goals

A skill or trait that is aligned with a business's goals

Which of the following statements describes business objectives? Business objectives are derived from business goals and align with the strategies that direct the actions laid out in the company's long-range plan. Business objectives are derived from situational analysis data and align with and expand upon the company's mission to define what the organization will focus on for the duration of its long-range plan. Business objectives are derived from the company's strategies and expand upon them to define how much money the company will make by the end of its long-range plan. Business objectives are derived from the company's vision statement and expand upon it to define what the company's reputation will be at the conclusion of its current long-range plan.

Business objectives are derived from situational analysis data and align with and expand upon the company's mission to define what the organization will focus on for the duration of its long-range plan.

Cam is a broker. His licensees, Jane and John, represent two sides in a single transaction. Jane represents the seller; John represents the buyer. What relationship does Cam have to the buyer and the seller? Cam is a designated agent to both the buyer and seller. Cam is a designated agent to the buyer and a dual agent to the seller. Cam is a designated agent to the seller and a dual agent to the buyer. Cam is a dual agent to both the buyer and seller.

Cam is a dual agent to both the buyer and seller.

A broker is following a problem-solving process to handle a situation in which one of her licensees has violated a brokerage policy. Which of these actions must be part of the solution she pursues to resolve the problem? Coaching Communication Discipline Termination

Communication

ABC Brokerage has developed a(n) ______ that leans toward a production philosophy, since employees and independent contractors receive pay raises related to productivity. Action plan Business plan Compensation plan Staffing plan

Compensation plan

Mark is the listing agent for a home owned by the Browns. At the open house, a colleague, Brandon, indicates that he has a buyer for the Browns' home. Mark has had numerous interactions with Brandon on other listings, and found that they don't get along. He really doesn't want to work with him on this deal. In order to behave ethically, what can Mark do? Cooperate with Brandon because it's in the best interest of his clients. Inform the buyers that they will probably not be happy with Brandon. Persuade the buyers to break their contract with Brandon. Refuse to work or cooperate with Brandon.

Cooperate with Brandon because it's in the best interest of his clients.

Which of the following is considered illegal based on a buyer's race, color, national origin, sex, religion, familial status, or disability? Declining to show your 30-something buyer a condo in a registered senior community. Denying that a house is available for sale when it actually is. Informing your buyers that a house they're interested in is under contract. Showing your buyers all homes they're interested in, even if the homes don't appear to meet their needs.

Denying that a house is available for sale when it actually is.

How can you calculate a firm's market share percentage? Divide the firm's number of sales by the total number of market sales. Divide the regional GDP by the firm's total number of sales. Multiply the average sales price by the firm's number of transactions. Multiply the firm's number of sales by the total sales in the market, then divide by 100.

Divide the firm's number of sales by the total number of market sales.

Which type of compensation plan benefits inexperienced real estate agents the most? Employee salary Independent contractor with high commission split Independent contractor with hourly wage Independent contractor with low commission split and bonus incentives

Employee salary

A(n) ______ compensation philosophy ties compensation level to the employee's length of service. Entitlement Performance Production Timed

Entitlement

If the cash flow statement projects a cash deficit for the majority of the upcoming year, which of the following would be the best solution? Close the doors on this business as it appears it won't generate a profit. Evaluate the firm's overall finances and make necessary adjustments. Obtain short-term financing to cover the firm's expenses. Rely on cash reserves to cover the deficits.

Evaluate the firm's overall finances and make necessary adjustments.

The firm's reputation is best protected by ________. Everyone in the firm Managers Sales staff Staff who interact with clients

Everyone in the firm

Broker Hal has conducted eight exit interviews in the last three years, and now he's sitting down to review those interview notes. Which of the following is true of this situation? He should look for common threads or themes in those notes that could provide valuable information about the brokerage as a workplace. He should only consider the comments from licensees, rather than from any regular staff members, because licensees are the only ones who matter at the brokerage. He should only consider the comments from the people who resigned, because those who were terminated will be too bitter to provide valuable information. He should only consider the "constructive criticism" form of interview feedback, because the positive comments—while nice to hear—aren't helpful for the brokerage.

He should look for common threads or themes in those notes that could provide valuable information about the brokerage as a workplace.

Which of the following would help you improve communication skills? Avoid confusion by sharing all of the information you have about a transaction with both the buyer and the seller. Hold regular phone or web meetings with all parties to a transaction. Rely on your transaction coordinator to keep your transactions on track. Write down, verbatim, each conversation you have about a transaction.

Hold regular phone or web meetings with all parties to a transaction.

What might happen to housing demand in your target market if a major employer closes? Housing demand may exceed supply of housing in your target market. Housing demand may fall if there are layoffs in your target market. Housing demand may increase if the employment rate decreases. Housing demand may rise if there are layoffs in your target market.

Housing demand may fall if there are layoffs in your target market.

Which of the following is a contract that exists based on an understanding or assumption, rather than on specifically defined terms? Express contract Implied contract Invalid contract Unilateral contract

Implied contract

Which of the following statements is true regarding risk identification? It involves analyzing the level of exposure associated with risks the firm faces. It involves reviewing every aspect of the firm's operations to determine what risks each poses. It's the final step in risk management. It's the process of categorizing financial risks of various investments.

It involves reviewing every aspect of the firm's operations to determine what risks each poses.

Todd and Tory sign a contract agreeing to falsify the cost of roofing repairs on Todd's house so Tory can collect more insurance money. Why is this contract invalid? It's not for a legal purpose. The parties are incompetent. There's no consideration. There's no mutual consent.

It's not for a legal purpose.

Of the following, which one could be considered a real estate violation? Before showing a buyer customer his listing, Mitchell explained to the buyers that he represents the sellers. Henry provided customers with a copy of their signed broker engagement agreement. Isabelle keeps all signed broker engagement agreements in a safe but accessible location in the broker's office. Mandy didn't disclose to potential buyers that she was showing her own listing, or that she represents the sellers.

Mandy didn't disclose to potential buyers that she was showing her own listing, or that she represents the sellers.

Which one of the following actions is a required duty of a supervising broker? Approve licensee business expenses. Attend closings for all licensees. Establish work hours for licensees. Monitor licensee paperwork.

Monitor licensee paperwork.

For what advertising purpose might a baseball cap with the brokerage logo be appropriate? A specific listing High-end listings Name recognition Targeted marketing

Name recognition

Tina is planning her brokerage's office space. Since the primary purpose of the office is to meet with customers, it's important to provide privacy. Which configuration is best for this office? Loft Lounge Open Partitioned

Partitioned

Which type of legal structure may be either general or limited in type? Corporation Limited liability corporation Partnership Sole proprietorship

Partnership

Brandon is managing a brainstorming session with his staff. On the white board, they've listed items such as licensee safety, embezzlement, agency relationships, and foreclosure sales. What topic is the group likely discussing? Ethical procedures Fraud prevention Risk identification Risk mitigation

Risk identification

______ is the process of determining what risks your firm faces. Risk analysis Risk identification Risk management Risk mitigation

Risk identification

Which of these is an action a broker should take after a sales meeting? Contact those who didn't attend and warn them that they'll need to be at the next scheduled sales meeting Discard the sign-in sheet and any handouts used to prevent confusion Send out a quiz on the key points of the meeting to establish who wasn't paying attention Send out a recap of the key points from the meeting to all associates

Send out a recap of the key points from the meeting to all associates

What hardware might a brokerage need to run essential software? Desktop publishing, web design, and image editing Financial management, word processing, and sales management programs Internet, virus protection, and utilities Server, routers, and peripherals (printers and scanners)

Server, routers, and peripherals (printers and scanners)

In marketing terms, your logo is the firm's ____. Brand Identity Reputation Signature

Signature

Why does it matter if a brokerage decides to maintain a sales staff of 50 mostly new licensees, rather than 10 very experienced licensees? The brokerage can make more money with many licensees, regardless of experience level. The brokerage will be required to pay fewer taxes with a large group of new licensees than for a small group of experienced licensees. The brokerage will have more difficulty finding experienced licensees who want to switch brokers, so recruiting will be costlier. The number of licensees and their experience levels will affect the working relationships the brokerage has with its licensees.

The number of licensees and their experience levels will affect the working relationships the brokerage has with its licensees.

A broker wants to make sure that her sales associates can perform as effectively as possible. She uses a solid business model and a clear business mission; she communicates expectations to her licensees; she recognizes their efforts and compensates them fairly; and she provides the training they need. What else should she make sure her licensees have to allow them to perform at their best? A written contract requiring each licensee to promise to always do his or her best Only top-notch vendors associated with the brokerage Paid benefits as part of their compensation plan The technology tools and physical environment that the job requires

The technology tools and physical environment that the job requires

The value of a service or product, according to the value equation, is equal to the benefits received, less price plus ______. The time and effort put into the shopping process The time it takes the process to be completed The time used to determine which offering to select Time over which the offering will be used

The time and effort put into the shopping process

Monty is advertising a number of listings in the local newspaper and includes the fair housing logo in the ad. What else is required? A link to his firm's fair housing policy A link to the Housing and Urban Development fair housing site The correct colors The verbiage, "Equal Opportunity Housing"

The verbiage, "Equal Opportunity Housing"

Chip represents Ginger, the buyer. Raphael represents Tom, the seller. If Chip and Raphael are from the same brokerage, what is their agency relationship with their clients? They're designated agents; their broker is a dual agent. They're designated agents; their broker is also a designated agent. They're dual agents; their broker is also a designated agent. They're dual agents; their broker is also a dual agent.

They're designated agents; their broker is a dual agent.

A broker is training all affiliated licensees on a recent change in fair housing laws. Why should she deliver the training to new licensees separately from experienced salespeople? Because new licensees at a brokerage are required to complete additional discussion items at all training So that the training documentation all brokerages are required to maintain doesn't get mixed up To prevent experienced salespeople from offering unapproved tips on the transactional process to new licensees To prevent new people from getting lost in details they don't understand, and to save experienced people from sitting through explanations they don't need

To prevent new people from getting lost in details they don't understand, and to save experienced people from sitting through explanations they don't need

Data encryption is important because it ______. Allows regular updates to process without your approval Ensures that you do not access unsecure sites Prevents hackers from accessing your computer Turns information into indecipherable code

Turns information into indecipherable code

Volunteerism and social activism should NOT be done for the sake of gaining ______. A connection to the community Community respect Free publicity New causes to support

Free publicity

Shawna received loan proceeds. Why wouldn't this appear on her income statement? It's debt. It's income. It's not cash coming in. It's not revenue.

It's not revenue.

Which of these groups of protected classes is included in the NAR Code of Ethics' definition of discriminatory behavior? National origin and religion only Race and color only Race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity Sex, age, and marital status only

Race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity

Lilith is a broker who offers her agents a 100% commission. Which of the following is a potential problem for her with this compensation plan? She has less control over her agents' activities due to their level of experience. She may owe more taxes than she can afford to pay. She's required to supervise her licensees more closely because of their level of experience. She's responsible for paying her agents even when they aren't producing.

She has less control over her agents' activities due to their level of experience.

What is the purpose of strategic business planning? To calculate staffing needs To determine business objectives To help reach the business goal by determining the method by which the goal can be achieved To support technological needs

To help reach the business goal by determining the method by which the goal can be achieved

Of the following, which is the best reason for continuing marketing efforts, even when revenue is down and the market is slow? To maintain visibility To maintain your business relationship with suppliers To reduce the cost of contact with clients To spend all of the marketing budget

To maintain visibility

Brandon wants to find out how many rental units are unoccupied in his area. Which market indicator provides this information? Inventory rates Price levels Sales volume Vacancy rates

Vacancy rates

Cynthia loves her apartment and would like to have the option to buy it once her lease is up. Who's the best person to help Cynthia prepare a lease option? A real estate attorney A real estate investor A real estate licensee Her landlord

A real estate attorney

Serious damage to the firm's brand or reputation can occur as a result of ______. A pattern of small but negative events A single large event A single large event or a pattern of smaller events Competition in a market niche the firm has chosen

A single large event or a pattern of smaller events

How does assignment differ from novation? Assignment automatically releases the party who assigned the contract from further contract obligations. Assignment doesn't require agreement of all the parties. Assignment requires agreement of all the parties in order to be valid. Novation does not terminate the original contract.

Assignment doesn't require agreement of all the parties.

Which one of the following statements is a potential consequence of inaccurate revenue reported on financial statements? Budgeting and forecasting will be inaccurate. Payroll tax reporting will be impacted. The cash account won't balance. The state regulatory agency will impose penalties.

Budgeting and forecasting will be inaccurate.

Regarding industry trends and outlooks, which of the following is a best practice for broker-owners? Consider national and global trends, but keep a closer eye on changes within your local market. Don't take them too seriously. Chances are, they will change—like everything else in real estate. If you don't agree with the current industry outlook or a particular trend, just ignore it. Take immediate steps to adjust your business model to address all trends and outlooks.

Consider national and global trends, but keep a closer eye on changes within your local market.

If you have data about the GDP, CPI, mortgage climate and interest rates, property values, and employment, what environment are you ready to analyze? Business Economic Legal Regulatory

Economic

Direct mail to residents in your listing's neighborhood not only markets the property, but may also ______. Generate new client leads Give neighbors an idea what their house might be worth Notify residents of a potentially empty home Notify residents that they may be getting new neighbors

Generate new client leads

On a scale of 1 to 3, with 3 being high, Johanna's brokerage has identified flood damage to the office building as a level 2 for likelihood of occurrence and a level 3 for severity of impact. Is this a low-, medium-, or high-level risk? Depends on number of occurrences High Low Medium

High

Which of the following may be a result of sluggish real estate market conditions? Higher-than-normal average DOM Inaccurate competitive market analysis numbers Low number of expired listings Rising housing prices

Higher-than-normal average DOM

When should your firm perform the risk identification process? Initially when writing the risk management plan and as needed thereafter On a five-year cycle when updating the strategic plan Once, when writing the risk management plan Quarterly when updating the financial statements

Initially when writing the risk management plan and as needed thereafter

Which option best describes what an environmental impact statement is? It defines the level of drilling that needs to take place in order to build foundations for the development. It describes and analyzes a proposed action that may have a significant effect on the environment. It describes local zoning regulations like setbacks, zones, and curb requirements. It illustrates the benefits of the development to the community to improve community acceptance.

It describes and analyzes a proposed action that may have a significant effect on the environment.

A ______ would fulfill his or her assigned role within the brokerage by supervising licensees and staff. Clerk Manager Personal assistant Sales associate

Manager

Nicky is a brokerage ______, so he is most likely a salaried employee. Agent Licensee Manager Sales associate

Manager

Which of the following can help you determine the best location and structure of an office, based on the needs of your target market? Business directories Competitors' reviews Executive summary Market analysis

Market analysis

Strategic expense management includes which of the following activities? Evaluating marketing niches Monitoring the checking account Planning for cash infusions Regularly reviewing expenses

Regularly reviewing expenses

What needs to happen for a code of ethics to be effective? Employees should be required to memorize the code. The code needs to be enforced through consequences. The code needs to have monetary reinforcement. The code should be posted on the firm's website.

The code needs to be enforced through consequences.

How is a brand identity directly expressed to your market? Through licensee expertise Through number of completed closings Through referrals Through use of your logo

Through use of your logo

Which of the following is one of the main purposes of the brokerage sales meeting? To establish which associates follow the rules To give sales associates an amusing break from their work To identify recent errors and the individuals who made them To inspire sales associates and give them tools to work better

To inspire sales associates and give them tools to work better

Broker Stephen is excited to move his growing brokerage into the most visible corner lot on fashionable Main Street. A lighted billboard with the brokerage's brand beams from the rooftop. What's the most primary purpose for the office? To house backend functions To promote the brokerage's image To provide a secure official mailing address To provide a service center for remote employees

To promote the brokerage's image

Which statement most accurately describes a licensee's responsibility related to written offers on their listing, according to the NAR Code of Ethics and Standards of Practice? A licensee is only required to present formal written offers that are equal to or more than the listing price. A licensee is only required to present formal written offers within a certain range of the listing price of the property. All formal written offers received by the licensee must be presented to the owner, unless the owner has accepted a previous offer. All formal written offers received by the licensee must be presented to the owner until closing or execution of a lease, unless the client waives this obligation in writing.

All formal written offers received by the licensee must be presented to the owner until closing or execution of a lease, unless the client waives this

How might a company help its non-English-speaking agents from another country succeed in its U. S. offices? By forcing them to speak English By giving them an Anglo boss By giving them bonuses for excellent work By providing English as a second language (ESL) classes and tutors

By providing English as a second language (ESL) classes and tutors

Citytown officials know that they have an abandoned factory site that has been identified for cleanup under CERCLA. When city officials tried to trace the ownership of the property, they found several shell corporations but can't determine which individual or corporate entity actually owns the property. What is a likely outcome of this situation? Citytown will apply to the CERCLA trust fund for cleanup costs. Citytown will bill the EPA for cleanup costs. Citytown will end up paying for cleanup. The factory site won't be cleaned up and will sit empty.

Citytown will apply to the CERCLA trust fund for cleanup costs.

Vince's job at the brokerage is to greet customers and clients who walk in, answer the phone, and direct people to an agent. In which staffing category does his position fall? Clerical/administrative Manager Personal assistant Sales associate

Clerical/administrative

What is a flat-fee pricing strategy? Clients are charged a flat fee for each service provided from a menu of offerings. Clients are charged a percentage of the property's listing price. Clients are charged a percentage of the property's sales price. Clients are charged a pre-set fee for a pre-determined service.

Clients are charged a pre-set fee for a pre-determined service.

Which of the following describes the process of making a copy of a website for the purpose of obtaining money or data from unsuspecting users? Backing up files to an external hard drive Cloning Encrypting your email Storing logins and passwords

Cloning

Donna believes if she's not directly involved with every step of a process, it's not going to get done correctly. Which style of management does Donna likely use? Autocratic Coercive Laissez-faire Participatory

Coercive

This style of leadership works well when a group needs to be brought into line, but it can also stifle creativity and create distrust. Autocratic Dictatorial Laissez-faire Participatory

Dictatorial

Which of the following is a good way to ensure safety and security at an office building? Consistent alarm codes Dim entrances and parking lots Double-paned, double locked windows Hollow-core exterior doors

Double-paned, double locked windows

A thorough understanding of the ______, regulatory, and business environments is needed to fully analyze the market. Average sales price Economic GDP Market share

Economic

April, an employee, takes two hours for lunch on a regular basis. She always says she has an appointment, or something else that has come up that was important. Other employees in the office are beginning to complain. What should the managing broker do? Explain to April that she needs to keep her lunch to one hour, just like everyone else. Have one of April's co-workers find out what April is doing when she's gone so long. Ignore it, as long as her work is getting done. Tell the others in the office to mind their own business.

Explain to April that she needs to keep her lunch to one hour, just like everyone else.

Which agency prohibits unfair acts, practices, or methods of competition, and enforces federal antitrust and consumer protection laws nationally? Attorney general's office Consumer Reports Federal Trade Commission National Bar Association

Federal Trade Commission

What information does the Loan Estimate NOT provide to buyers under required disclosures law? Estimated closing costs Final closing costs Loan fees Loan payment schedule

Final closing costs

In contrast to inorganic growth, organic growth usually involves __________. A merger An acquisition Gradual change over time Rapid growth

Gradual change over time

Which of the following would appear on your budget? Gross income Notes payable Office equipment Total assets

Gross income

Which of the following is the final step in the performance review process? Assign a numeric rating to the employee's performance Develop job descriptions and standards for performance Evaluate the employee's performance against a job description and standards for performance Hold a meeting between manager and employee to review the performance evaluation

Hold a meeting between manager and employee to review the performance evaluation

A consistent disparity in listing versus selling prices may reflect ______. Attempts to avoid a bidding war Inaccurate competitive market analysis Miscommunication between licensee and client Showing availability

Inaccurate competitive market analysis

Rich is a sole proprietor who has no staff. If he grows his business to a four-agent firm, which of the following can he expect? Decreased costs of doing business Increased revenue More control Simplified operations

Increased revenue

The Asian Real Estate Association of America (AREAA) membership "includes housing and real estate professionals of all cultural backgrounds and is open to those who support the mission of_______________." Advocating for public policy that serves all America Educating real estate professionals who serve minority home buyers and sellers Increasing sustainable home ownership in the Asian community Promoting democracy in housing for African-Americans

Increasing sustainable home ownership in the Asian community

Independent contractors maintain some degree of protection from discrimination by virtue of their ______. Independent contractor agreement License Membership in the National Association of REALTORS® Production levels

Independent contractor agreement

Business at Vista Brokerage is slow so you've initiated a new marketing campaign to pull in more clients. What impact should you expect from your marketing efforts? Direct Extreme Indirect Minor

Indirect

Three brokers in the sales department of a large firm consistently exceed their sales goals. When asked by the broker-owner how they've been able to do it, they said they'd been following a strategy they learned on a broker's blog site. What kind of organization is at work? Formal Functional Informal Staff

Informal meeting

Which of the following is the best definition of a budget? It's a detailed management and planning tool that serves as your earnings and spending goal for a period of time. It's a flexible planning tool that changes frequently to match existing conditions. It's a high-level outline of your projected revenue and expenses for a given time period. It's a report provided to your lender to prove that you can stay within specified spending parameters.

It's a detailed management and planning tool that serves as your earnings and spending goal for a period of time.

Although training delivered via a recorded webinar may not be very engaging for a learner, it does have one advantage over other training delivery methods. What is it? It allows learners to interact frequently with the content, though not with one another. It incorporates many opportunities for practice with other students or an instructor. It's budget-friendly for the brokerage when a large, physically dispersed audience is involved. It's quick and easy to produce.

It's budget-friendly for the brokerage when a large, physically dispersed audience is involved.

Which of the following is a good way to ensure safety and security of properties listed by your brokerage? Keep keys locked in a secure location. Keep lockboxes and lockbox data close to you. Store keys in an easily accessible location so they're available in an emergency. Tag keys with clients' names and addresses.

Keep keys locked in a secure location.

Broker Kay is the anti-hoarder; she hates all forms of clutter, especially paperwork. She'd love to shred every bit of paperwork the second a transaction closes, and decides to write her brokerage policy to state that all transaction paperwork must be shredded within one month of the transaction's closing. Is this okay? No. Kay must obey the recordkeeping requirements established by state laws and regulations. No. Kay's brokerage must keep all real estate transaction records for at least one year, according to the National Association of REALTORS®. No. Kay's brokerage must keep all real estate transaction records for five years. Yes. As the broker, Kay is allowed to create her own brokerage policies, including those regarding recordkeeping.

No. Kay must obey the recordkeeping requirements established by state laws and regulations.

Which of the following is an example of a fixed asset? Accounts receivable Cash Office equipment Petty cash

Office equipment

Five competing licensees in the same area agreed to cooperate in setting a standard commission rate for the area. This makes them guilty of a per se antitrust violation. What is a per se antitrust violation? Boycotting One in which no intent needs to be proven to establish a violation has occurred One in which the parties colluded Price fixing

One in which no intent needs to be proven to establish a violation has occurred

Under what conditions can a licensee contact sellers who are under an exclusive listing agreement with another agent? Only to arrange a showing to a buyer To inform them that they will probably not be happy with the services provided by their current representative To let them know that they can provide the seller with an appraisal that may allow them to raise their asking price To persuade them to break their listing contract

Only to arrange a showing to a buyer

In the 1950 case involving the District of Columbia's Washington Board of REALTORS® in which the National Association of REALTORS® became involved, the board required that brokers should maintain the standard rates of commission adopted by the board, and no business should be solicited at lower rates. No member may charge less than this rate when involved in the sale, exchange, lease, or management of real property in the District of Columbia. What were the parties guilty of? Fair housing law Group boycotting License law Price fixing

Price fixing

One of the actions that landed the Consolidated Multiple Listing service of South Carolina in court was prohibiting members from offering home sellers the opportunity to avoid paying a broker's commission if the seller located a buyer on their own. What type of antitrust violation does this exemplify? Group boycotting Market allocation Price fixing Tie-in arrangement

Price fixing

The 1970 case against Prince George's County Board of REALTORS® found that the board was suggesting commission rates and publishing schedules of commission rates. What type of antitrust violation was this? Group boycotting Market allocation Price fixing Tie-in arrangement

Price fixing

What should be the primary consideration in office configuration? Amenities Current trends Food service Productivity

Productivity

Which of the following is an example of the data and transactional management feature of a computer system? Data encryption File storage Report generation Teleconferencing abilities

Report generation

Jillian is considering running a virtual brokerage office. What might be her biggest challenge with running her brokerage virtually? Finances Office space Supervision Technology

Supervision

Which of the following business planning activities breaks the long-range plan down into smaller tasks and identifies which segment(s) of the company are responsible for doing what? Market analysis Situational analysis Strategic planning Tactical planning

Tactical planning

Broker Allie wants to attract new licensees to her brokerage. Which of the following is a good way to do this? Ask her current licensees to act as ambassadors with their colleagues. Network at local real estate commission meetings. Pass out her card to licensees she meets at industry events. Talk to real estate school instructors.

Talk to real estate school instructors.

Which of the following is a true statement about a brokerage's building safety? A broker should not get involved in security measures, to minimize litigation potential. Occupant health is less of a consideration than security. Tall hedges near the entrance pose a problem. Thick doors are a fire hazard.

Tall hedges near the entrance pose a problem.

What can be defined as the demographic to which you want to provide services? Competition Gross domestic product Inventory sales Target market

Target market

Which term is defined as your selected consumer base? Base sales volume Gross domestic product Market share Target market

Target market

Broker Terrence is shopping for office space. He found a great deal on an office located on the corner of a busy intersection. Which of the following data from the market analysis will help Terrence decide if this is a good location for his office? Average rental rates Name recognition of competitors Target market's service needs Target market's traffic patterns

Target market's traffic patterns

The term "sticky website" refers to ________. How well your website sells your other digital marketing techniques Techniques for connecting your Facebook and LinkedIn pages Techniques for getting consumers to return to your site The user's inability to click out of the site

Techniques for getting consumers to return to your site

Thom is nearing retirement but hopes to keep his brokerage firm intact when he retires. He's concerned that no one on his existing staff has the skills, aptitude, or interest necessary to take over the management role. What's the disadvantage of hiring an external candidate to manage the firm? Reduction in recruitment costs The introduction of new ideas The longer transition and training time The new manager's skill level

The longer transition and training time

If a minor enters into a contract with an adult, which of the following is true? The adult may legally hold the minor to the contract, but the minor cannot legally hold the adult to the contract. The contract is valid, and both the minor and the adult may legally hold the other party to the contract. The contract is void, and neither the minor nor the adult may legally hold the other party to the contract. The minor may legally hold the adult to the contract, but the adult cannot legally hold the minor to the contract.

The minor may legally hold the adult to the contract, but the adult cannot legally hold the minor to the contract.

Which of the following is true regarding a standardized set of policies and procedures? They don't assist in overall risk management, but they do play a role in human resources management. They often cause confusion. They're a primary tool in risk management. They're one of the risks associated with broker liability.

They're a primary tool in risk management.

When working with a developer who's purchasing undeveloped land for a new subdivision, ABC Realty stipulates in the contract that in order to purchase the undeveloped land, the developer must purchase grading services from Bulldozers-R-Us. Which antitrust violation is this? Group boycotting Market allocation Price fixing Tie-in arrangement

Tie-in arrangement

What is the primary purpose of an exit interview when a licensee leaves a brokerage? To abide by laws that require exit interviews, so the brokerage isn't penalized or sued for wrongful termination To collect feedback about what it's like to work for the brokerage, and possibly find areas for improvement To collect the employee's confidential information to tell everyone at the brokerage To try to convince the licensee to stay at the brokerage

To collect feedback about what it's like to work for the brokerage, and possibly find areas for improvement

Jennings has received a Closing Disclosure from his lender. What's the purpose of this form? To detail all costs Jennings will owe at closing To disclose the distribution of commissions that will occur at closing To estimate closing costs To estimate the seller's net proceeds

To detail all costs Jennings will owe at closing

Which of the following is a good reason to merge with or acquire another company? To form a larger company that is more competitive To help a new company form its own identity To hide financial losses from customers and investors To save a company that's in decline from bankruptcy

To form a larger company that is more competitive

What is the purpose of tracking industry and economic trends? To provide budget-to-expenditure comparisons To provide information about external events that might impact the brokerage To provide topics of conversation for the next association meeting To support the retention schedule for transaction files

To provide information about external events that might impact the brokerage

You're representing Crystal in the purchase of a house. Crystal has a trust fund and can more than afford the house on which she's made an offer. Which of the following statements is true? Your duty of confidentiality to your client dictates that you not disclose your client's financial situation to the seller. Your duty of disclosure to customers and third parties requires that you disclose Crystal's financial status to the seller. Your duty of honesty and fairness to customers dictates that you must share with the seller Crystal's ability to pay more for the property than she offered. Your duty of working in your client's best interests means you should be showing her properties that are in a higher price range since she can afford it.

Your duty of confidentiality to your client dictates that you not disclose your client's financial situation to the seller.

How should technological advances factor into your business systems decisions? Your office and systems decisions should be made by your employees. Your office and system should be run by an outside firm. Your office and systems should be adaptable to advancements that increase efficiency. Your office and systems should constantly be modern and up to date.

Your office and systems should be adaptable to advancements that increase efficiency.

ABC's market had a total of 150 sales last year. ABC had 15 sales in the same time period. What is ABC's market share? 10% 15 15% It depends on the number of competitors.

15%

Which of the following would be an appropriate marketing department goal statement? Become the best residential sales firm in the city. Become the top annual sales producer in our firm's region. Increase our market share and reduce days on market. Stay within our marketing budget.

Become the top annual sales producer in our firm's region.

Arnold plans to open a brokerage. What might make him select a sole proprietorship legal structure? He wants control over branding. He wants to enter the market with a recognized brand. He wants to minimize his personal liability. He wants to share liability.

He wants control over branding.

When licensees focus all their efforts on one segment of the real estate market with the intention of minimizing, and perhaps even eliminating, the competition, this is known as ______. Foolhardy Niche marketing Smart business Supply and demand

Niche marketing

Landon is the listing agent for Maury's property. Maury is moving out of state for a new job, so the house will be vacant for some time, depending on how long it takes to sell. Maury is pretty adamant about not having a sign in his yard, especially after he moves. Landon follows Maury's wishes, but a month after Maury moved, there hasn't been any movement on the property. Landon places a sign in the yard, hoping it will drum up some interest. Is this okay? No, Landon shouldn't place a sign on Maury's property without Maury's written permission. No, Maury's neighbors might tattle. Yes, as the listing agent, Landon has the right to place a sign on the properties he has listed. Yes, since Maury has moved, Landon can make decisions related to the property.

No, Landon shouldn't place a sign on Maury's property without Maury's written permission.

Karen accepts Brent's rights and responsibilities under a contract. The other party to the contract, Sharon, had to agree to this. This action terminated the original contract. This is a(n) ______. Assignment Novation Specific performance Termination

Novation

Which of the following is prohibited under federal fair housing laws? Noting that a property has an in-law apartment Offering different terms, conditions, or privileges based on protected class status Requiring income verification before offering financing Using the phrase "first-time homebuyer" in an advertisement

Offering different terms, conditions, or privileges based on protected class status

Dan is planning the office space for his brokerage. He wants an open work area for his enthusiastic sales staff to collaborate and share experiences. Sometimes the group can get quite loud. Of the following, which is the best option for the location of the open work area? Across the hall from the conference room In between two sales offices Next to the reception, before the manager's office On the opposite side of the building from the public areas

On the opposite side of the building from the public areas

How many employees, not including independent contractors, must a brokerage employ in order for the employer to be required to abide by the Fair Labor Standards Act? 15 20 40 One

One

Using a company website, social media sites and apps, writing a blog, and providing electronic checklists and guides are examples of your firm's _________. Commitment to sustainability Online presence Social media savvy Website development

Online presence

Broker Keenan is working with a professional space planner to design his office. The primary purpose of the space is for collaboration among his virtual sales professionals. What office configuration is best for Keenan's office? Corralled Open Partitioned Walled-in

Open

Many buyer agency agreements contain a provision which comes into play if the buyers let the agreement expire and then try to contact a seller directly. What is this provision called? Commission assignment Exclusivity clause Mitigation clause Protection clause

Protection clause

Gabe spent most of his capital on his new business venture, so he needs his business to make money immediately. What type of brokerage is Gabe looking for? Lease rights to an existing brokerage. Purchase an existing brokerage. Share business with an existing brokerage. Start his own brokerage.

Purchase an existing brokerage.

Connie and her staff had just moments to evacuate the building when fire alarms sounded. Everyone's safe, but her office was destroyed. What's Connie's first step in managing this disaster? Contact her regulatory agency. Contact the insurance company. Gather her staff and develop a disaster recovery plan. Refer to a prioritized list of restoration functions.

Refer to a prioritized list of restoration functions.

Rochelle's firm is concerned about its licensees being attacked during showings. Which of the following is the mostly likely source of risk? Brand Financial Fiscal Safety

Safety

Which tactic is directly tied to the strategy, "Train all brokers and licensees to use virtual meeting software"? Advertise virtual meeting capabilities. Purchase headsets for all staff members. Schedule training sessions for all staff members. Schedule virtual meetings with clients.

Schedule training sessions for all staff members.

A general business objective is designed to expand on which of the following? The company's core values The company shareholders' goals The company's mission statement The company's vision statement

The company's mission statement