Texas Brokerage CE 30 Hours Part 3

Broker Mack is a great broker but not so great when it comes to interviews. Which of the following questions is a legally permissible question to ask interviewees? "Are you married, and if so, is your husband going to mind that you're out in the evenings?" "Have you ever had a disagreement with a client, and if so, how did you handle it?" "I noticed you're using a cane. Are you going to have trouble getting into homes that have a lot of steps?" "You might have to work some nights and weekends. Do you have someone to watch your kids during those times?"

"Have you ever had a disagreement with a client, and if so, how did you handle it?" (Interview questions should focus on the job and the brokerage, not personal information about the candidate's life, especially topics that border on discrimination!)

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

Which of the following describes the concept of vicarious liability? A broker can be held liable for the misconduct of the licensees and employees they have on their staff. A licensee can be held liable for not disclosing unknown defects. A licensee is held liable only for their own actions. A seller client can be held liable for the actions of buyers viewing their property.

A broker can be held liable for the misconduct of the licensees and employees they have on their staff.

What's a financing portfolio? A collection of your investments in the stock market A credit application A proposal presented to lenders or investors when seeking funding A summary of the various types of funding your firm uses

A proposal presented to lenders or investors when seeking funding (A financing portfolio contains information that lenders or investors can use to determine the viability of funding your request.)

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

A brokerage has three employees: two part-time clerical workers and one full-time transaction coordinator. Which of these positions is covered by the minimum wage standards set by the Fair Labor Standards Act? All three employees None of them; the brokerage is exempt from FLSA requirements because of its size The full-time worker The two part-time workers

All three employees (The FLSA applies to employers who have even just one employee, and minimum wage standards apply to both part-time and full-time employees.)

What would be considered a business opportunity according to 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

An external factor that could be exploited for business gain (Opportunities in a SWOT analysis are external factors that can be used for business gain.)

Which of the following could be an example of your identity? "ABC Realty is my favorite real estate company," says Ron. A feeling that many of your customers have about your business. An office space that is sleek, modern, and efficient "We're here when you need us."

An office space that is sleek, modern, and efficient (If your brand statement is "the real estate firm of tomorrow," your identity is the visual representation of that concept.)

Milly is a broker who is coaching a sales associate, Laura. The first step in Milly's coaching process is to ______. Ask questions about Laura's goals and challenges Clarify their roles as teacher and student Communicate a development plan to Laura Monitor Laura's performance to define strengths and weaknesses

Ask questions about Laura's goals and challenges

Fliss likes to give her associates good value in exchange for the time they take to come to her sales meetings. That's why she often ___________ at the meetings. Asks different associates to share a best practice tip Pays associates an hourly rate for the time spent Provides coffee and doughnuts Shows inspirational videos

Asks different associates to share a best practice tip

Which of the following statements is true about a centralized management system? Administrative functions (e.g., training, accounting) tend to be decentralized. Authority is heavily concentrated at the top. Each major organizational function operates as a separate business unit. It is responsive and allows for more flexibility.

Authority is heavily concentrated at the top.

If a community plan requires developers to build new public spaces in urban areas as part of new construction projects, and the result is that more people want to live and work in the city, what impact would this have on a real estate business? Select the most complete answer. Because community plans have little impact on economic growth, this would not be a consideration for a real estate business. Because of the added cost to the developer, this would be weighted as a cost to a real estate business. Because the plan includes both a cost for developers and the benefit of making an area more desirable, it could be weighted differently, depending on the services the real estate business offers. Because the plan makes the city more desirable, this would be weighted as a benefit to a real estate business.

Because the plan includes both a cost for developers and the benefit of making an area more desirable, it could be weighted differently, depending on the services the real estate business offers. (Many economic growth policies have some costs and some benefits for businesses, which business owners can weigh as they plan their businesses.)

Which of the following statements about ADA requirements is true? ADA requirements apply to building access, not the services offered there. Businesses may be eligible for tax relief to offset costs incurred to comply. "Reasonable accommodation" is clearly defined by the ADA. Reasonable accommodations are only required for customers.

Businesses may be eligible for tax relief to offset costs incurred to comply. (Though "reasonable accommodation" is a legal term that hasn't been fully defined, it applies to the building and services. Businesses that incur costs to be compliant may be eligible for tax relief.)

Business goals should be attainable. What does this mean in terms of SMART goals? Challenging and based on competitors' successes. Challenging yet realistic and based on actual data. Easy to achieve without much effort. Easy to track progress toward the goal.

Challenging yet realistic and based on actual data. (Goals should be attainable—meaning challenging, yet realistic—and based on actual data.)

One of the IRS tests for classifying a brokerage's independent contractors as statutory non-employees is ______. Confirmation the worker has a valid real estate license No overtime pay Reduced benefits Regular paydays

Confirmation the worker has a valid real estate license

Supporting the company mission can be a common goal for licensees, which is a strategy that helps ______. Create a strong team dynamic Improve the brokerage presence in the neighborhood Licensees build their personal business Reduce brokerage expenses

Create a strong team dynamic

Danielle's friend, Joanna, is an agent. Danielle is considering listing her property and shares the details with Joanna. Joanna creates an MLS listing and places a sign in Danielle's yard. Danielle knows that Joanna will do a good job, so even though she hadn't actually agreed to let Joanna list the property, she permits her to start scheduling showings. Which of these is an example of ratification? Danielle knows Joanna will do a good job, so she permits Joanna to start scheduling showings. Danielle sues Joanna because Joanna didn't have Danielle's permission to list the property. Joanna presents several offers to Danielle. Joanna schedules an open house at Danielle's property.

Danielle knows Joanna will do a good job, so she permits Joanna to start scheduling showings.

Soriyah has most of the qualities needed to be a an effective leader, but she won't let other licensees lead sales meetings. What quality of an effective leader is she lacking? Accountability Delegator Empathy Visionary

Delegator

Which of the following statements are true regarding determining the amount of office space needed for your brokerage? Desk fees should be calculated to determine how many licensees are needed to cover expenses. Offices and cubicles require the same amount of space. Principal working quarters should not be more than 50 square feet per staff member. The need for conference rooms and separate training rooms won't increase the size requirements.

Desk fees should be calculated to determine how many licensees are needed to cover expenses.

A market with multiple competitors means that ______________. A brokerage should avoid the market Each competitor will have a lower market share overall It should be easy to gain traction The brokerage should make it a primary focus

Each competitor will have a lower market share overall (Whether it's a good market for a brokerage or not depends on many factors. However, a market with many competitors means that each competitor's share is likely lower overall.)

Julia has been an unlicensed assistant at Douglas Brokerage for 25 years. She's not as productive as some of the other unlicensed assistants, but she still gets paid more than all of them. What is the compensation philosophy of Douglas Brokerage? Desk time philosophy Entitlement philosophy Performance philosophy Production philosophy

Entitlement philosophy

When risk factors are known, what's the next step in risk management? Decide to handle each risk Eliminate all risk Evaluate alternatives Identify potential risk

Evaluate alternatives (An appropriate next step is to evaluate the various alternatives for handling each risk. It's impossible to eliminate risk altogether.)

Lena is reviewing the safety measures that were implemented for her brokerage office. Which safety measure was implemented properly? Disaster emergency drills have been postponed until the weather gets warmer. Everyone has been informed where the first aid kits and fire extinguishers are located. The reception telephone was pre-programmed with emergency numbers. Three people out of 24 have been trained to respond to a fire emergency.

Everyone has been informed where the first aid kits and fire extinguishers are located.

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

A supervising broker discovers that one of her licensees has placed an advertisement that could violate fair housing laws. What is the broker's responsibility in this situation? Alert the real estate licensing authorities so that the licensee can be disciplined. Explain the violation to the licensee and provide training to ensure the error isn't repeated. Immediately sever the relationship with the licensee. Levy a fine on the licensee.

Explain the violation to the licensee and provide training to ensure the error isn't repeated.

Which of the following is a characteristic of a formal organization? Based on relationships Cohesive through trust Collectively formed Follows the rules

Follows the rules

Which term means the horizontal expansion of a business through enlarging its physical presence or impact via advertising, networking, or adding offices in new locations? Geographic expansion Inorganic growth Sector expansion Service expansion

Geographic expansion

Why is it important to ask your accountant or another financial expert to help you analyze your firm's financial data? Financial analysis is too time-consuming for the real estate professional. Inaccurate analysis of data may lead to erroneous conclusions about the firm's financial position. Staff will be more willing to accept analysis results from an accountant than from the broker. State real estate laws require that financial analysis be completed by an accountant.

Inaccurate analysis of data may lead to erroneous conclusions about the firm's financial position.

What's one reason for the increased mobility or population shifts from one area to another? Increase in jobs offering tenure Increase in tectonic activity that has shifted the placement of housing Increase in the number of jobs people have over their lifetime Increase in the number of jobs requiring travel overseas

Increase in the number of jobs people have over their lifetime

Broker Sam has extended an offer to licensee Jane, who has accepted the offer. Jane will work as an independent contractor for Sam. Based on this, which of the following statements is true? As an independent contractor, Jane will not have to fill out any tax-related or IRS-related paperwork. It is up to Jane whether or not she wants to have taxes withheld from her pay. If she does choose to have taxes withheld, she must complete a W-4. Jane will need to fill out a W-4 for tax withholding information. Jane will need to fill out a W-9 for IRS reporting purposes.

Jane will need to fill out a W-9 for IRS reporting purposes.

Rita, the owner of Advantage Realty, wants her brokerage to give clients an impression of a boutique agency where salespeople work as a smoothly functioning unit to achieve clients' goals. What is her best strategy for achieving this? Maintain a small staff of carefully chosen licensees who can work together successfully. Select only experienced licensees to work at the brokerage and assign them to specific clients. Select only new licensees to work at the brokerage, but use several of them to achieve revenue goals. Sponsor a large group of licensees who work as employees, not independent contractors.

Maintain a small staff of carefully chosen licensees who can work together successfully.

Question 42 Broker Olivia is working on writing some SMART goals for her new brokerage. What does the "M" in SMART mean? Maximum Meaningful Measurable Motivating

Measurable

Which of the following important components of a business plan outlines an organization's fundamental purpose? Goals statement Mission statement Purpose statement Vision statement

Mission statement

Jen looks at the general operating budget and divides each line item by 12. These figures become the budgeted figures for the _____. Annual forecast Monthly operating budget Profit center budget Variable expense budget

Monthly operating budget (These figures become the monthly operating budget figures.)

This essential feature of a business computer system allows communication within a brokerage and teleconferencing to remote locations, and allows staff to share files and folders stored on their hard drives with each other. Cloud computing Networking Security management Transaction management

Networking

The ______ should introduce workers to the brokerage culture, mission, and values, and give them a good first impression of the firm. Brokerage policy manual Job interview New worker orientation Professional development plan

New worker orientation

Bruce works with licensee Diana. He helps her with tasks such as placing advertisements and completing paperwork for listings, but he's not allowed to perform any tasks requiring a real estate license. In which staffing category does his position fall? Clerical/administrative Manager Personal assistant Sales associate

Personal assistant

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 advertisemen

Within the firm, in what document(s) would a licensee find information about the company's risk management processes? Independent contractor agreement Office newsletter Policies and procedures manual Transaction files

Policies and procedures manual

The agricultural sales department has become responsible for generating enough revenue to cover 28% of overall budgeted expenses for the firm. What kind of budget will it create? General operating budget Monthly operating budget Profit center budget Variable expense budget

Profit center budget

What's a best practice for supervising remote licensees? Let them answer each other's questions. Monitor licensees via the camera in their company laptops. Provide proper training in office policies and procedures. Require monthly meetings in your physical office space.

Provide proper training in office policies and procedures. (Remote licensees need to be supervised, not monitored or left to their own devices with occasional visits to the office. Training them on office policies and procedures is your best bet.)

What action does RESPA prevent brokers from performing? Making more than five sales per quarter in a given neighborhood Preparing a market analysis Providing kickbacks to settlement providers Releasing confidential client information to the public

Providing kickbacks to settlement providers

Julie wants to go into business and wants to make money immediately. Which of the following options would suit her best? Purchase and close down a competing business. Purchase an existing business. Start up her own brokerage. Start up her own franchise.

Purchase an existing business.

Which of the following business names would be the most likely outcome of a merger between Duck Realty and Rooster Realty? Amos Realty Duck Realty Quack-a-Doodle-Doo Realty Rooster Realty

Quack-a-Doodle-Doo Realty

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

Which office area's purpose is to promote the brokerage's image to the public? Conference room Reception Restroom Training room

Reception

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 (Data and transactional management includes data compilation, sorting, report generation.)

Donald has a new listing for the house next door to his. He's never had problems with these neighbors and hopes to keep it this way by making sure the "right" people move in. He doesn't show the property to any prospective buyers with children. These actions soon bring complaints of a fair housing violation. What effect does this have on Robert (Donald's sponsoring broker)? Neither Robert nor Donald will be affected by the fair housing violation. Only Robert is liable for Donald's actions, and he alone will be sanctioned as a result of Donald's fair housing violation. Robert is liable for Donald's actions and could be sanctioned along with Donald as a result of Donald's fair housing violation. Robert is not liable for Donald's actions and is not affected by the fair housing violation.

Robert is liable for Donald's actions and could be sanctioned along with Donald as a result of Donald's fair housing violation.

Which of these would be an advantage for the broker of hiring licensees as salaried employees, rather than as independent contractors on a commission-based compensation plan? Agents will bear the cost of their own business expenses. Desk fees charged to agents can usually cover the cost of their salaries. Licensees tend to find a steady salary highly motivating and will be more productive. Sales agents will probably make fewer errors as a result of more broker control and supervision.

Sales agents will probably make fewer errors as a result of more broker control and supervision.

Sam chose a beautifully preserved Victorian house for her brokerage office. After signing the lease, she realized that it would cost a fortune to make the space completely ADA-compliant. What does the ADA say about situations like this? Businesses housed in historic homes are exempt from ADA requirements and legislation. Government financing is available for business owners whose cost of retrofitting is prohibitive. Some buildings are exempt from strict compliance due to the prohibitive cost of retrofitting. Strict compliance is required by all buildings, regardless of the cost to the owner.

Some buildings are exempt from strict compliance due to the prohibitive cost of retrofitting. (Some buildings are exempt from strict ADA compliance due to the prohibitive cost of retrofitting.)

To be effective, the wording of a brokerage's code of ethics must be ______. Brief Didactic In electronic form Specific

Specific

Which of the following dictates the most important requirements for transaction record retention? State laws and regulations The local association of REALTORS® recordkeeping policy manual The National Association of REALTORS® policy on record retention Whatever the broker decides

State laws and regulations

Often, "strategies" and "tactics" are used interchangeably; however, in business they mean different things. Which of the following statements describes the difference between business strategies and tactics? Strategies define what the company wants to do, and the tactics define how it's going to do it. Strategies focus on present business practices while and tactics focus on future achievements and successes. Strategies state what the company will focus on to fulfill its mission, and tactics are plans to achieve certain goals. Tactics are decided at the leadership level while strategies are defined and carried out by department managers and staff.

Strategies define what the company wants to do, and the tactics define how it's going to do it. (Strategies are set by higher levels of leadership and are the methods through which the company goals and objectives will be achieved. Tactics are decided by department managers and carried out by staff.)

Which of these statements most accurately represents existing federal antitrust legislation? The Clayton Act supports the Sherman Antitrust Act's purpose of prohibiting monopolies by prohibiting mergers or acquisitions that would create a monopoly. The Federal Trade Commission Act established the Sherman and Clayton acts to prevent collusive activities that limit competition. The Federal Trade Commission Act prevents one large firm from acquiring another similar firm that would result in a restraint of trade. The Sherman Antitrust Act was passed to supplement the Clayton Act in an effort to prevent mergers that create monopolies.

The Clayton Act supports the Sherman Antitrust Act's purpose of prohibiting monopolies by prohibiting mergers or acquisitions that would create a monopoly.

In risk analysis, what does severity of impact mean? How much the risk could cost The chance that the risk will occur The level of damage the firm could incur The overall level of risk possible for each occurrence

The level of damage the firm could incur

In addition to the property address, the lease agreement start and end dates, and the monthly rent and deposit amounts, which of the following pieces of information should all commercial leases contain? A complete list of the other tenants and their rental rates A copy of the tenant's credit report A detailed description of the property The purpose for which the space is being rented

The purpose for which the space is being rented

How is inorganic growth defined? The growth of a business through the gradual adoption of new services and increases in market share The horizontal expansion of a business The rapid growth of a business through the acquisition of or merger with another company The vertical expansion of a business

The rapid growth of a business through the acquisition of or merger with another company (Inorganic growth is achieved through acquisition of or merger with another business that's already successfully executing the services you seek to offer.)

How might you indirectly convey a brand statement to your market? Through consistency between branding and identity Through signage and marketing materials Through use of your logo Through word of mouth

Through word of mouth (Referrals and word-of-mouth recommendations convey your brand statement in an indirect but often effective manner.)

Ralph's income statement for his firm showed a nice profit for the quarter. How can Ralph best use this information? To apply for a loan To compare to other quarters To determine his spending rate To forecast next quarter's profits

To compare to other quarters (A particularly strong month or a particularly weak month won't tell the whole story of the firm's finances. Income statements should be viewed over several periods to get a more accurate financial picture.)

Acme Realty and Ronco Realty are merging and need to create a transition plan. What's the purpose of the transition plan? To create a new pay structure for employees To establish a way to move operations To manage the merger more smoothly To provide an exit strategy for owners

To manage the merger more smoothly