CE Brokerage Course
Which of the following could be an example of your brand statement? *"ABC Realty is my favorite real estate company," Ron says. *An office space that is sleek, modern, and efficient *"We're here when you need us." *Your firm's logo
*"We're here when you need us."
In certain cases, antitrust violators may be subject to court-ordered supervision. How long can this supervision last? *10 years *One month *One week *One year
*10 years
A central element of an antitrust violation is _______. *A contract *Customer relationships *High stakes *Interstate dealings
*A contract
Why do most people move to a new location? *A better view *A new job *Climate change *To attain a better market share
*A new job
Licensee productivity training would likely include which of the following? *A lunch-and-learn session introducing multiple closing agents *A tip sheet on cold calling and the Do Not Call Registry *A training session on business planning and goal setting *A workshop on anti-discrimination laws
*A training session on business planning and goal setting
Jeanette held a face-to-face training session with the firm's licensees to introduce some changes to a state-required disclosure form. She reviewed the form, pointing out the changes, discussing reasonings behind them, and going over licensees' responsibilities. One week later, licensee Rachelle is preparing to meet with a potential seller client and needs a quick reminder on a new required disclosure's details. Which additional training method is the most efficient for her? *Accessing the training companion guide from her mobile device *Searching the state's statutes in the online database *Setting up a meeting with her managing broker *Watching a video of the training session that Jeanette held the week before
*Accessing the training companion guide from her mobile device
Company A bought Company B as a growth strategy. Company B was absorbed into Company A, and all of its branding was dismantled. What kind of transaction does this describe? *Acquisition *Bankruptcy *Buyout *Merger
*Acquisition
Per the EPA, what must be conducted before a project may be approved for development? *An environmental impact study *An investigation into the developer's credit history *A site inspection *A test for hazardous materials
*An environmental impact study
When a broker is dealing with a personnel problem, which of these is the second step in a problem-solving process, after identifying the problem? *Analyze the problem *Brainstorm solutions *Communicate with the worker at fault *Monitor the situation
*Analyze the problem
You have two licensees who are overly competitive with each other, to the point that it's making everyone in your office tense. You've talked to them individually. What should you ask them to do to resolve the situation? *Ask them about the objective they're trying to achieve with their behavior, and help them find a more constructive way to get it done. *Give them a deadline by which they must resolve the problem between themselves, or you'll have to let them both go. *Require that they both apologize to the others in the brokerage at a meeting you'll call for this purpose. *Write up a description of the behaviors you'd prefer that they stop doing and what you'd like them to do instead, and have each of the involved licensees sign to acknowledge the document.
*Ask them about the objective they're trying to achieve with their behavior, and help them find a more constructive way to get it done.
Which entity has the authority to represent the state and citizens of the state in antitrust cases? *Attorney general *Department of Commerce and Insurance *Department of Justice *Federal Trade Commission
*Attorney general
You're considering the design for your new brokerage. You should plan to reserve the most luxurious space for ______. *Clients *Salespeople *The receptionist *Yourself, as the managing broker
*Clients
Which document should be provided to borrowers no fewer than three days prior to closing? *Closing Disclosure *Escrow Closing Notice *Loan Estimate *Mortgage Servicing Transfer Disclosure
*Closing Disclosure
What's the best method for ensuring that critical files are available, even in the event of a disaster? *Cloud-based storage *Hard copy storage in multiple locations *Local server storage *Removable hard drives
*Cloud-based storage
Which of the following strategies lets clients know you're providing them with high-quality service? *Communicating what you're doing for them during the transaction and staying in touch after. *Explain how many clients you work with on average each year. *Give copies of any awards received for being a top producer. *Remind clients you've sold expensive homes in the past.
*Communicating what you're doing for them during the transaction and staying in touch after.
Which of the following is a good idea for interviewing job candidates? *Ask questions to try to trip up the applicant. This helps you see how she handles pressure and catches her in any lies. *Conduct a prescreening conversation before the interview to evaluate a potential licensee's personality and communication skills. *Let the interview evolve organically just to see where it goes, so you can gauge the applicant's personality. *Take as many notes as possible during the interview so you can remember everything the interviewee said.
*Conduct a prescreening conversation before the interview to evaluate a potential licensee's personality and communication skills.
Brad has a good business plan and a strategy for how to achieve his goals. He also wants to have some alternate options and strategies in case unforeseen conditions arise. Which of the following is he interested in developing? *Blueprint *Contingency plan *General plan *Strategy
*Contingency plan
Which of these leadership traits is useful in a crisis and in establishing work flow? *Decisiveness *Empathy *Sympathy *Vision
*Decisiveness
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
Which of these best describes vertical growth? *Broadening *Diversity *Refocus *Specialization
*Diversity
Dirk, a licensee, deposited an earnest money check into the wrong account. His broker, Oscar, is following a problem-solving process to make sure Dirk doesn't make this error again. After analyzing the problem, Oscar believes that Dirk simply wasn't trained properly on the process for handling earnest money, so the action he selects is to provide Dirk with training on the process. Which of these is an important part of the problem-solving process that Oscar should also perform? *Dock Dirk's commission for the amount of the earnest money check. *Document the situation and the action Oscar has selected. *Inform the local REALTOR® association of Dirk's error. *Initiate a disciplinary action for Dirk.
*Document the situation and the action Oscar has selected.
Which organization enforced laws related to fairness and discrimination i the workplace? *EEOC *EFHCA *ERA *OSHA
*EEOC
Which of the following demographic data points would a brokerage be most interested in when evaluating a market? *Cultural composition *Employment level *Ethnic makeup *Sex
*Employment level
______ is a doctrine that protects an employer's right to hire or fire an employee whenever desired, with or without a cause, including for an unreasonable cause. *Employment-at-will *Independent contractor status *Mutual at-will employment agreement *Union collective bargaining agreement
*Employment-at-will
There are four key federal government controls that can potentially affect development and investment projects: _______; EPA-required environmental review; the protection of wetlands; and the protection of endangered species. *FAA approval for plans that include building a commuter airport near a highly populated area *FDA approval for plans that include building a food processing plant *FHA approval for subdivisions that plan to allow FHA financing *VA approval for subdivisions that plan to build military housing
*FHA approval for subdivisions that plan to allow FHA financing
Which of the following is a common concern that buyers express about their real estate licensee? *Failing to communicate information about the transaction's progress *Failing to share information about the loan process *Refusing to show properties that are outside the buyer's price range or location criteria *Showing the buyer's property to families who have not been pre-qualified for a loan
*Failing to communicate information about the transaction's progress
Which of the following brokers could get into trouble for wrongful termination? *Allison, who terminated affiliation with a licensee who was lazy *Bridget, who transferred a licensee whom the clients didn't like *Frank, who terminated a staff member because he was Jewish *Lyle, who terminated affiliation with a licensee who wasn't producing enough business
*Frank, who terminated a staff member because he was Jewish
Elena works in the accounting department of a mid-sized firm. The broker-owner gave Elena authority to request documents from all associate brokers in the firm to prepare the quarterly financial report. What type of authority does Elena have? *Absolute *Functional *Line *Staff
*Functional
Which of these is NOT an example of agency coupled with interest? *Carma agrees to list Tera's property for free if Tera signs an agreement to purchase her new home through Carma. *Gene, a real estate professional, is purchasing a home for his personal use. He negotiates a reduction in the sales price in return for taking no coission from the seller. *Jeanine agrees to charge no commission from her buyer's purchase of a four-plex if the buyer agrees to pay Jeanine a 3% fee for each unit for which she finds a tenant after the sale. *Rhoda loans Carl the money to catch up his mortgage payments in return for a listing agreement to sell Carl's home for a 4% commission.
*Gene, a real estate professional, is purchasing a home for his personal use. He negotiates a reduction in the sales price in return for taking no coission from the seller.
Licensee Alison suspects her two new buyer clients are involved in mortgage fraud. What should she do first? *Ask another licensee for an opinion. *Confront her buyer clients directly. *Document everything in case there's a lawsuit. *Go to her broker immediately.
*Go to her broker immediately.
One of the licensees that managing broker Gil supervises was found guilty of misconduct. What is Gil's liability here? *He's only liable if the licensee is an employee, not an independent contractor. *He's only liable if the license is an independent contractor. *He's potentially liable for failure to supervise and he may also be vicariously liable. *Unless he was aware of the violation, he's not liable.
*He's potentially liable for failure to supervise and he may also be vicariously liable.
______expansion methods widen the audience for services already provided. *Diffusion *Geographic *Horizontal *Vertical
*Horizontal
A franchise would be good business choice for someone looking for ______. *Instant name recognition *Minimized fixed expenses *No start-up costs *Total control
*Instant name recognition
Which of the following is a positive character trait of an effective leader? *Activism *Integrity *Intellectualism *Profitability
*Integrity
The compensation plan at Ginny's brokerage makes pay levels consistent with their level of responsibility, so that people are paid fairly when compared to what others at her brokerage do. What is this called? *External equity *Internal equity *Pay leveling *Rational adjustment
*Internal equity
If you need someone from your office to spend a few weeks hunkered down alone in the back room doing research, which personality type will you look to for this task? *Extrovert *Introvert *Judger *Perceiver
*Introvert
Loronda is working on her business plan in preparation for opening her own brokerage. Why should she consider including succession planning in her plan? *It helps to ensure that well-trained talent is available in the event that a critical position becomes vacant. *It prepares the firm for successive periods of low profits. *It provides a plan for who should buy the firm when she decides to sell. *It results in staff being more responsible and taking on additional tasks.
*It helps to ensure that well-trained talent is available in the event that a critical position becomes vacant.
Which of the following options is true regarding an income statement? *Expenses are usually listed from least to most expensive. *It is usually only provided once per year for tax purposes. *It shows income and expenses for a specific period of time. *It shows only income for a specific period of time.
*It shows income and expenses for a specific period of time.
Which one of the following statements is true about a sales contract that's been signed by both parties, and both parties have been notified of its acceptance? *It can also be called the consumer notice. *It consists of two pages: a brief description of the agreement and a signature page. *It's a legally binding contract. *It's the document buyers and their agents use to enter into a business relationship.
*It's a legally binding contract.
Cheryl is applying for an associate broker position at a real estate brokerage firm. She's reviewing a document that describes how the position relates to and interfaces with other associate brokers, management, licensees, and other business units. What is she reviewing? *Business plan *Job description *Organizational chart *Procedures manual
*Job description
Failure to disclose personal interests, failure to disclose whom the licensee represents, and practicing law without a license violate what type of law? *Antitrust law *Contract law *Fair housing law *License law
*License law
A ______ would fulfill an assigned role within the brokerage by supervising licensees and staff. *Clerk *Manager *Personal assistant *Sales associate
*Manager
You overhear two agents from different firms say, "You take the north side of town, and I'll take the south, so we aren't stepping on each other's toes." You stop their conversation to tell them they're committing an antitrust violation. Which one? *Group boycotting *Malfeasance *Market allocation *Price fixing
*Market allocation
What type of analysis can help you decide what office systems are best for your brokerage? *Financial analysis *Market analysis *Survey of popular office systems used by other brokerages *Workflow analysis
*Market analysis
Maddie is evaluating the competition in her market area. Which factor should she consider? *GDP *Market share *New building permits *Vacancy rates
*Market share
The M in a SMART goal stands for what? *Marketable *Measurable *Mindset *Monetary
*Measurable
In which of the following dispute resolution methods does the third party act as a facilitator and attempt to bring the parties to a mutual solution? *Binding arbitration *Dispute coordination *Litigation *Mediation
*Mediation
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
The ______ is a purpose-driven organization propelled by a passionate combination of entrepreneurial spirit, cultural heritage, and the advocacy of its members. *Asian Real Estate Association of America (AREAA) *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 Hispanic Real Estate Professionals (NAHREP)
As the supervising broker, Tanner makes sure that the firm's policies and procedures manual is updated regularly and is enforced. He provides regular formal and informal training on the manual's contents. Does this relieve Tanner of vicarious liability if a licensee performs an unethical act? *No. However, in some situations, Tanner's attempts at training and enforcement may help lessen sanctions against him. *No. Regardless of Tanner's efforts, he is vicariously liable for any of his licensees' actions. *Yes. Tanner can't be held responsible for willful misconduct that occurs without his knowledge. *Yes. Tanner made the procedures manual available and provided training.
*No. However, in some situations, Tanner's attempts at training and enforcement may help lessen sanctions against him.
Tabitha just started a new job at a large real estate brokerage firm. She was told that the company's organizational structure is highly centralized. What does this mean? *Authority is shared among multiple business units. *Operations are highly controlled at the top. *The chain of command is horizontally aligned. *There are fewer layers of management at the top.
*Operations are highly controlled at the top.
We get the most accurate picture of the firm's profitability by reviewing profits and losses ______. *For a single month *For a single year *Over several years *Weekly
*Over several years
While looking at her brokerage's financial data, Broker Sky knows she should focus on which of the following? *Any especially good sales months *Only the most current monthly profit and loss figures *Overall profit and loss trends *The number of licensee hours worked compared to revenue for the same time period
*Overall profit and loss trends
Which of these 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. *Overgrown hedges near the entrance pose a problem. *Thick doors are a fire hazard.
*Overgrown hedges near the entrance pose a problem.
Matt is an unlicensed personal assistant. He may ______. *Answer questions regarding negotiation strategies *Discuss contract terms with clients *Place advertising approved by the broker *Solicit clients
*Place advertising approved by the broker
Everyone in the firm should receive training on your firm's ________ to be proactive in preventing activities that could damage the firm's reputation. *Chain of command *Policies and procedures manual *Public relations policy *Transaction file documentation requirements
*Policies and procedures manual
Which of the following actions, when performed by a Texas licensee, violates the Canons of Professional Ethics and Conduct - Integrity? *Including the brokerage name and main phone number, in addition to the licensee's own name and phone number, on an advertisement *Making a reasonable effort to ensure all parties to a written agreement have a copy of that agreement *Preparing a written agreement that accurately states a purchase price *Preparing a written agreement that falsely states a purchase price
*Preparing a written agreement that falsely states a purchase price
Carl is looking at supply and demand for housing in his area. Which of the following is a true statement? *Demand and supply usually move together in the market. *Price and demand usually move opposite of each other. *Price and demand usually move together in the market. *Pricing and supply usually move together in the market.
*Price and demand usually move opposite of each other.
Agreeing to a specific price, price range, or minimum or maximum charges among competing firms is an example of which type of antitrust violation? *Group boycotting *Market allocation *Price fixing *Tie-in arrangement
*Price fixing
When a real estate board suggests commission rates, this is an antitrust violation known as ______. *Market allocation *Price fixing *Rate standard allocation *Restraint of profit
*Price fixing
What's the most important determining factor for the type of office the brokerage needs and the systems required? *Competitive advantage *Cost *Profit goals *Purpose of the business
*Purpose of the business
Put these hiring steps in their proper order. *Prescreening, interviewing, selection, recruitment, making an offer *Prescreening, interviewing, selection, recruitment, making an offer *Recruitment, interviewing, prescreening, making an offer, selection *Recruitment, prescreening, interviewing, selection, making an offer
*Recruitment, prescreening, interviewing, selection, making an offer
Which one of the following actions if performed by a licensed salesperson is a real estate violation? *Refusing to show a property because the prospective buyers are minorities *Refusing to show a property that's outside of a buyer's budget *Refusing to show a property to a party who's not financially qualified *Showing a property to qualified buyers
*Refusing to show a property because the prospective buyers are minorities
Which of the following is a recommended safety measure when meeting a customer in the field? *Drive the customer in your car, rather than getting into the customer's car. *Have the customer enter the building last. *Require ID. *Travel together, but have the customer in the back seat.
*Require ID.
Regardless of where they appear on the organizational chart, a leader always _______ others. *Admires *Judges *Reports to *Respects
*Respects
Cari is preparing an operating budget, and it shows a net loss. What should she do? *Adjust her projected revenue so it exceeds expenses. *Immediately slash her spending so she can meet her budget. *Obtain financing. *Review projected expenditures and revenues to look for adjustment possibilities.
*Review projected expenditures and revenues to look for adjustment possibilities.
How may a broker effectively manage the firm's cash flow and expenses? *Monitor the monthly checking account balance *Prepare annual financial statements *Review, plan, and forecast proactively *Review the firm's business plan annually
*Review, plan, and forecast proactively
Roberto signed a commercial lease that contains an automatic renewal clause. Given the presence of this clause, what will happen after the lease's original term ends? *Roberto's lease will be automatically renewed for the term stated in the original lease agreement. *Roberto's lease will continue on a month-to-month basis. *Roberto will be given a window of opportunity in which to buy the rental property. *Roberto will have one month to negotiate a new lease with the landlord.
*Roberto's lease will continue on a month-to-month basis.
What's the role of a server in a business's computer system? *Creates spreadsheets, compiles data, and generates reports *Encrypts data, detects viruses, and runs protection programs *Manages data storage and retrieval, and provides teleconferencing abilities *Runs programs, stores files, and sends information to connected computers
*Runs programs, stores files, and sends information to connected computers
Most brokerage managers are ______. *Independent contractors *Inexperienced *Non-licensees *Salaried
*Salaried
Darryl is an unlicensed personal assistant to Yvonne, a licensee. Yvonne is careful to direct his activities so he doesn't do anything that would require a license. Why is she so careful about this? *Darryl's worker classification requires that she place limits on his activities. *She and her broker are both responsible for Darryl's actions, and could lose their licenses if he acts illegally. *She knows that Darryl doesn't have the education to perform licensed actions properly. *She prefers to be in full control of how her clients are handled.
*She and her broker are both responsible for Darryl's actions, and could lose their licenses if he acts illegally.
Camila thinks her brokerage isn't visible enough. She has an idea to place a large LED-lit sign with her logo on the roof so it can be seen by drivers on the highway overpass at night. What should Camila consider before lighting things up? *Building codes *Electrical sources *Occupancy standards *Signage regulations
*Signage regulations
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 S in SWAT analysis stands for what? *Simple *Strategies *Strengths *Successors
*Strengths
A broker must ______ independent contractors. *Direct *Direct, manage, and supervise *Manage *Supervise
*Supervise
You're a broker who has just brought on some new licensees. You notice that a couple of them really don't get along, and it's making the whole office a tense place to be. Which of the following actions should you take? *Explain that you can't—and won't—tolerate this kind of behavior from any of your team members. *Fire the ones who aren't getting along. *Take disciplinary action against the one who seems to be the instigator. *Talk to them individually to clarify your expectations and then model the type of behavior you expect from them.
*Talk to them individually to clarify your expectations and then model the type of behavior you expect from them.
In addition to your state's laws and regulations, which other organization dictates how long you should keep various brokerage records? *Local association of REALTORS® *NAR *The county assessor's office *The IRS
*The IRS
What does having an abundance mentality mean? *A business thinks it has a bigger market share than it does. *The idea that taking an abundance of clients from the competition is required to succeed. *The idea that there's enough business for everyone. *The mindset that there's a finite number of customers in the market and that you must compete head to head with your competition.
*The idea that there's enough business for everyone.
Which of the following is one of the IRS requirements for a real estate brokerage worker to be classified as a statutory non-employee? *The individual has at least three years of experience selling real estate. *The individual is a licensed real estate agent. *The individual is paid by the hour, not by services provided. *The individual is supervised by a broker.
*The individual is a licensed real estate agent.
Which would be the most appealing photograph for an MLS listing? *The dog house *The kitchen *The mailbox *The utility room
*The kitchen
Who's ultimately responsible for the actions of a personal assistant? *The assistant *The licensee *The licensee and the licensee's supervising broker *The principal to the transaction
*The licensee and the licensee's supervising broker
The progressively minded owners of the highly successful Exactly Right real estate brokerage are looking to merge with a similar company. They've evaluated four companies so far. Which of the following is the best candidate? *The owners of Company A are ready to retire. The policies, procedures, and management styles are very different from those of Exactly Right. *The owners of Company B are energetic and motivated to grow. The organizational structure is similar to Exactly Right's structure. *The owners of Company C are trying to avoid bankruptcy. The products and services they offer are similar to those of Exactly Right. *The owners of Company D want to keep status quo in their operations. They have a different business philosophy than the owners of Exactly Right.
*The owners of Company B are energetic and motivated to grow. The organizational structure is similar to Exactly Right's structure.
As a listing agent, when are you no longer obligated to present offers to your client? *The sale has closed. *You are paid. *You have a signed contract. *Your client tells you to stop.
*The sale has closed.
One drawback to franchises is ______. *They aren't established *They provide name recognition *They require you to develop your own identity *They require you to pay franchise fees
*They require you to pay franchise fees
Royal Brokerage has a mission statement that reads: "We find all clients a castle of their own." Its goal is to work with very exclusive, demanding clients and broker sales of high-end residential properties. Which of the following staffing philosophies does this brokerage most likely use? *Licensees will be supported and encouraged to grow by their broker. *The broker will sponsor licensees who prefer all their business actions to be strictly controlled by their broker. *The broker will sponsor many licensees, both new and experienced, and expects this will lead to capturing their desired market share. *This broker will only sponsor experienced licensees who can work successfully with a particular type of client.
*This broker will only sponsor experienced licensees who can work successfully with a particular type of client.
A person who facilitates the paperwork, but doesn't actually represent either party to the transaction, may be a ______. *Designated agent *Dual agent *Sub-agent *Transactional broker
*Transactional broker
With this type of commercial lease, the tenant typically pays the taxes, insurance, and maintenance expenses. *Gross lease *Net lease *Percentage lease *Triple net lease
*Triple net lease
Which of the following increases computer security risks? *Using a firewall *Using encryption *Using passwords *Using public networks
*Using public networks
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
What's vicarious liability as it applies to real estate? *When a broker commits an illegal act *When a broker directs a licensee to commit an illegal act *When a broker is held responsible for the actions or omissions of their licensees *When one licensee witnesses another licensee's misconduct
*When a broker is held responsible for the actions or omissions of their licensees
Joan is trying to determine the amount of space she needs for her brokerage. Most of her licensees are rarely in the office .Which site selection considerations are most important for her needs? *Energy efficiency *Environment *Parking *Who uses the office
*Who uses the office
Which of the following is an example of software? *Hard drive *Peripheral *Scanner *Word processing
*Word processing
Which of the following statements regarding written agreements is true? *It's up to your client to find out the material facts affecting property. *Signing your sponsoring broker's name to a document is allowed as long as you have their permission. *You aren't responsible for anything you don't put in writing. *You can be held financially responsible for details not put in writing.
*You can be held financially responsible for details not put in writing.
Jim has an idea to open his brokerage in a Victorian house in a quiet residential neighborhood. What's the first thing Jim should look into before opening up shop? *Signage requirements *Space requirements *Wine pairing guides *Zoning ordinances
*Zoning ordinances
If online security is a concern, which of the following websites would be the safest? *http://amazon.com *https://www.google.com *http://www.facebook.com *http://www.msnbc.com
*https://www.google.com
Affiliated business arrangement (AfBA)
A package of business arrangements between real estate brokerage firms and affiliated mortgage companies or other settlement service providers, when there is more than 1% common ownership between the companies. RESPA requires that consumers be informed of the availability and costs of other lenders.
agency coupled with an interest
A situation in which the agent has a personal interest in the subject of the agency, as when one co-owner has been authorized by the others to sell their property.
Act of Waste
Abuse of a property by a person who holds possession through a life estate
abutting Land parcels that share a common border abutting Land parcels that share a common border Abutting
Land parcels that share a common border
Gina developed a SWOT analysis for her company. She listed the company's strengths, weaknesses, and opportunities. What is she missing? *Budget *Mission statement *Threats *Vision
Threats
accession
addition of value to property through labor or addition of new materials, including an increase in land through natural causes
Which of the following statements could indicate a price fixing violation? *"I base my price on my services." *"My price is non-negotiable." *"This is the price my brokerage requires me to charge." *"This is the standard price for a full-service listing."
*"This is the standard price for a full-service listing."
Ron and Shelly seem to squabble over who should clean the microwave at least twice a week and it's disruptive to the entire office. What should the managing broker say to them to stop their feuding? *"I will be publishing a microwave cleaning schedule, and I expect you both to follow it." *She shouldn't say anything. She should remove the microwave. *"This type of squabble has no place in a professional office. Please work together to resolve the issue. If you need my help, let me know." *"You two are a disgrace to this organization. Knock it off."
*"This type of squabble has no place in a professional office. Please work together to resolve the issue. If you need my help, let me know."
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.
*10%
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
What is market share? *A firm's percentage of the overall market sales for a given market *An investment option for local businesses *A piece of ownership in a local government's economic plan *The average sales price of a firm's transactions
*A firm's percentage of the overall market sales for a given market
Brokerages traditionally use commission-based compensation plans for sales agents because it's generally considered _____________. *A good way for a broker to avoid paying taxes *A good way to motivate sales agents to produce *Easier to administer than salary-based plans *More profitable for the brokerage when sales are slow
*A good way to motivate sales agents to produce
What is the difference between a merger and an acquisition? *A merger is when companies join forces to establish a larger customer base. An acquisition is when one company acquires another company in order to sell off asset and make a profit. *A merger is when two companies join together. An acquisition is when one company purchases another company. *A merger is when two companies join together. An acquisition is when one company purchases another company. *In a merger, one company takes over the assets of the other. In an acquisition, the owner assigns the business to another company.
*A merger is when two companies join together. An acquisition is when one company purchases another company. *A merger is when two companies join together. An acquisition is when one company purchases another company.
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 is an unacceptable term to use in real estate advertising? *Able-bodied *Multi-family *Reference required *Verifiable income
*Able-bodied
John, a personal assistant, advised Shelly, who is a client of John's supervisor, Bill, about a negotiation strategy. John is ______. *Acting illegally; personal assistants are not allowed to negotiate *Acting legally, provided he has a real estate license *Acting within the job duties for any personal assistant *Just being helpful
*Acting legally, provided he has a real estate license
Which one of the following options describes a good way to recruit both new and experienced licensees? *Advertise on your website. *Ask your current licensees to act as ambassadors to their colleagues. *Get to know local real estate school instructors. *Talk to non-licensees about a career in real estate.
*Advertise on your website.
______ must abide by the Canons of Professional Ethics and Conduct, enforced by the Texas Real Estate Commission. *All citizens of Texas *All Texas real estate licensees *Licensees who are members of REALTOR® associations *Sales agents
*All Texas real estate licensees
Broker Stan has recently lost four salespeople. Which of the following salespeople left for a reason that was unrelated to the brokerage? *Alliyah, who left to start her own brokerage *Barkley, who left because he doesn't like how the brokerage is being managed *Jamee, who left to work for a broker who offers higher commission splits for licensees *Orlando, who left because his new broker offers ongoing free training and seminars to his licensees
*Alliyah, who left to start her own brokerage
Because a brokerage is a place of accommodation where goods or services are offered to the public, it must comply with _______ requirements. *Americans with Disabilities Act (ADA) *Fair Housing Act *Internal Revenue Service (IRS) *Real estate license law
*Americans with Disabilities Act (ADA)
Which of these should a brokerage's independent contractor agreements 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
What does the Federal Trade Commission consider to be an unfair ad? *Any ad or business practice that causes or is likely to cause injury *Any ad that is likely to mislead consumers acting reasonably under the circumstances *Any ad that makes a health claim *Any ad with a claim that's difficult to evaluate
*Any ad or business practice that causes or is likely to cause injury
Tangible or intangible items that a firm owns are ______. *Assets *Expenses *Liabilities *Products
*Assets
What is a potential challenge to a company undergoing a merger or an acquisition? *Access to new markets *Access to office space and equipment *Assumption of debt *Name recognition
*Assumption of debt
Because it's difficult for real estate professionals (and brokerages) to judge the quality of their service based on client loyalty, the firm's managing broker should inspire and empower everyone at the brokerage to ______. *Be a problem-solver within the limits of the law and their license *Call all of their former clients and conduct in-depth interviews to find out if they could have done anything better to help them *Do whatever they need to do to make the client happy *Offer a discounted commission rate to everyone who provides a positive online review of the brokerage
*Be a problem-solver within the limits of the law and their license
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.
Leslie, Andrew, Malcom, and Maria are officers of a real estate brokerage firm. They're also the directors and stockholders. The transfer of stock is complicated. What's this firm's legal structure? *Close corporation *Franchise *General partnership *Limited liability company
*Close corporation
Which of the following technological advances gives users remote access to files and other data through a web browser? *Central database *Cloud computing *Firewall *Teleconferencing
*Cloud computing
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
When analyzing financial ratios based on the balance sheet, ______. *Comparing balance sheets over a period of time can provide information about a firm's financial health *Lenders are concerned mainly with the debt/worth ratio *The current balance sheet provides all the information needed *The net profit ratio shows the proportion of expenses to revenue
*Comparing balance sheets over a period of time can provide information about a firm's financial health
Which of the following is a supervising broker responsible for monitoring? *Business expenses *Completion of continuing education requirements *Telephone communications *Work hours
*Completion of continuing education requirements
Which of the following areas, which is open to the public, should keep privacy and technology foremost in mind? *Conference room *Lobby *Reception *Restrooms
*Conference room
Which economic indicator is defined as the consumer's optimism or pessimism in the economy and his or her willingness to spend? *Consumer confidence index *Consumer price index *Gross domestic product *Market share
*Consumer confidence index
Forecasters predict a huge spring blizzard. Jarrod's not concerned about operations because everyone could use a couple of days off, anyway. The snow will melt eventually. What long-term issues could arise that would cause more damage than Jarrod realizes? *Clients may be unable to reach Jarrod or his staff because of the storm. *Closings could be delayed because roads are impassable. *Damage to the building from the storm and melting snow could destroy Jarrod's office and records. *Power outages could restrict access to electronic files and prevent Jarrod's staff from performing tasks.
*Damage to the building from the storm and melting snow could destroy Jarrod's office and records.
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.
In the last five years, the owners of Totally Rad Homes have strayed from their business plan and have made some poor financial decisions, resulting in significant debt. It's questionable whether the company can revitalize operations. What stage of the business life cycle is Totally Rad Homes in? *Death *Decline *Midlife *Rebirth
*Decline
Which of the following most completely describes the cost of sales concept? *Commissions paid to sales staff *Cooperating broker commissions the firm received *Direct costs, plus a portion of indirect brokerage expenses *Direct costs, such as referral fees and cooperating broker commissions
*Direct costs, plus a portion of indirect brokerage expenses
A fire has destroyed your office building. Which of the following plans will enable you to begin restoring operations? *Budget *Contingency files *Disaster recovery plan *Strategic plan
*Disaster recovery plan
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
If the cash flow statement projects a cash deficit for the majority of the upcoming year, which of the following options 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.
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 act created an agency to investigate antitrust practices? *Attorney General Act *Clayton Act *Federal Trade Commission Act *Sherman Antitrust Act
*Federal Trade Commission Act
Nat has a friend who's in the home construction business, and he says that in the last six months, there's been an increased demand from developers to build homes that are more energy efficient and use sustainable, non-toxic building materials. What current market trend is this an example of? *Aging of Baby Boomers *Greener buyers *Increased density *Smaller houses, bigger houses
*Greener buyers
Before an individual can perform real estate services for others for a fee, what's required of that individual? *A master's degree in real estate science *Good intentions by a student working toward a real estate license *Have a real estate license issued by the state's licensing authority *Successful completion of the required education for real estate licensure
*Have a real estate license issued by the state's licensing authority
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
Which step of the hiring process allows the broker to evaluate a small number of the most competitive candidates? *Interviewing *Prescreening *Recruiting *Selection
*Interviewing
Amanda wants to know how long, on average, homes are staying on the market before they sell. What market indicator can give her this information? *Inventory rates *Price levels *Sales volume *Vacancy rates
*Inventory rates
Which of the following is a true statement about facilities management? *It applies to the building only. *It involves the building, people, and processes. *It should be left to the building manager. *Safety is not a concern.
*It involves the building, people, and processes.
When a website has an S in the "http" portion of the URL, such as: "https://www.google.com," what does it mean? *It is a phishing website. *It is a secure website. *It is a single sign on website. *It uses more than one "http."
*It is a secure website.
When working in a real estate office, what is the best reason to support cultural diversity? *It creates a challenging workplace. *It's hard to find employees. *It's politically correct. *It's the best way to provide services to a broad array of clients.
*It's the best way to provide services to a broad array of clients.
During litigation, who provides the binding decision? *Arbitrator *Judge *Jury *Mediator
*Judge
Managers with this style are hands-off, expect work to be completed with little direction, and don't control the process. *Autocratic *Coercive *Laissez-faire *Participatory
*Laissez-faire
Good record retention is one way to ______ risk. *Elevate *Eliminate *Increase *Manage
*Manage
Why is it important for tenants and owner/landlords to review the insurance section of a commercial lease? *Many times, the amount of insurance specified in the lease is higher than the amount a tenant actually carries, and higher than the amount the landlord actually requires. *Sometimes insurance is not required, so the section should be removed from the lease. *The tenant and owner/landlord need to agree on which insurance agent to use. *The tenant needs to witness that the landlord has specified in the lease the amounts of insurance the owner is carrying on the building and its contents.
*Many times, the amount of insurance specified in the lease is higher than the amount a tenant actually carries, and higher than the amount the landlord actually requires.
Which of the following is the most appropriate office configuration decision? *Let budget dictate image. *Make sure it's a little nicer than the office of your nearest competitor. *Match the configuration with business needs. *Spend the most money on image.
*Match the configuration with business needs.
When analyzing the competition you should evaluate affiliations, _______, marketing strategies, services, and employee benefits. *Cameras *Furniture *Office location *Transportation
*Office location
Which type of buyer agency offers the flexibility to work with multiple agents but results in buyers acting on their own behalf since no agent owes fiduciary duties? *Exclusive agency *Exclusive right to represent *Limited agency *Open Agency
*Open Agency
Sydney decided to add housing inspection services to her company, so she got licensed as an inspector and started offering her services to buyers. What type of growth is this? *Corporate growth *Inorganic growth *Non-corporate growth *Organic growth
*Organic growth
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
What is the most fundamental management activity? *Accounting *Investment *Planning *Training
*Planning
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
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.
Tristan refused to let Marla list his property on the MLS, even though Marla told him that more exposure to the property would generate more potential buyers. Which two fiduciary duties are at odds in this situation? *Loyalty and confidentiality *Loyalty and reasonable skill and care *Reasonable skill and care and confidentiality *Reasonable skill and care and obedience
*Reasonable skill and care and obedience
Rich is a broker who wants to improve his licensees' performance, so he encourages them to take a training class on increasing sales. Which of the following statements is true about Rich's decision? *Rich should first analyze why his associates aren't performing better, because the training will only work if the performance problem is one that can be resolved with training. *Rich will not only improve his licensees' performance by providing training, he'll improve his brokerage's reputation, too. *Rich would be more successful at improving performance if he offered incentives to his associates, such as cash bonuses. *Rich would probably be wiser to replace the licensees who aren't performing to his expectations, rather than spending money on a training class.
*Rich should first analyze why his associates aren't performing better, because the training will only work if the performance problem is one that can be resolved with training.
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 the following is one of the factors used in calculating a brokerage's risk exposure? *Competition in the area *Cost of insurance *Local tax basis *Severity of impact
*Severity of impact
Terrell's staff has defined the firm's current place in the market and has analyzed the competition. This information serves as which component of the marketing plan? *Goals and objectives *Mission statement *Situation analysis *Target market
*Situation analysis
Sylvie works as an application analyst at a large, multi-office real estate brokerage. With what component of the brokerage computer system does Sylvie likely work? *Hardware *Networking equipment *Servers *Software
*Software
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.
Madison wants the satisfaction of creating her own brand and setting up processes an procedures that align with her business objectives. Which type of brokerage is best suited to her needs? *Acquire an existing brokerage. *Merge with an existing brokerage. *Purchase an existing brokerage. *Start her own brokerage.
*Start her own brokerage.
Which of the following requires that contracts transferring ownership of real property be in writing to be enforceable? *Code of ethics *Fair Housing Act *Statute of frauds *Statute of limitations
*Statute of frauds
You've received a consent order regarding an antitrust activity. This means you must ______. *Appear before a hearing panel *Give permission for the proper authority to access your records *Stop the activity *Turn state's evidence
*Stop the activity
Samantha is a real estate licensee. She's showing her client a property. The client asks about some spots on the ceiling and wonders if they're an indication of a roof leak. What should Samantha do? *Climb on the roof and perform an inspection. *Hire a home inspector to physically inspect the property. *Suggest that her client contact a roofing expert to make a determination. *Tell her client that the spots indicate a roof leak.
*Suggest that her client contact a roofing expert to make a determination.
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
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
Which term is defined as your selected consumer base? *Base sales volume *Gross domestic product *Market share *Target market
*Target market
The two real estate firms in one small town, Vineyard Realty and Homestead Homes, agree to charge the same commission rate to avoid the possibility of clients selecting a firm based simply on price. What specific federal legislation prohibits this? *The Clayton Act of 1914 *The Federal Trade Commission Act of 1914 *The Restraint of Trade Act of 1894 *The Sherman Antitrust Act of 1890
*The Sherman Antitrust Act of 1890
Which of the following statements is true about regulatory oversight of antitrust cases at the state level? *Because states don't have their own antitrust laws, the state attorney general's role is to enforce federal antitrust laws. *States may recover up to four times the amount of damages suffered as a result of antitrust violations. *The attorney general has the authority to act in parens patriae for the citizens and the state. *The U.S. Department of Justice handles prosecution of antitrust interstate activity affecting a state.
*The attorney general has the authority to act in parens patriae for the citizens and the state.
The written agreement between a broker and a licensee working as an independent contractor must have a clause that states ______ in order for the IRS to classify the licensee as a statutory non-employee. *The broker is responsible for withholding taxes from any commission paid to the licensee *The individual has a valid real estate license *The individual is at least 21 years of age *The licensee waives the right to receive supervision from the broker
*The individual has a valid real estate license
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.
Which of the following is a benefit of legal counsel as a preventive measure? *They can review policies, procedures, practices, documents, etc., and identify risk areas. *They can usually handle all risk issues in an annual meeting. *They're inexpensive consultants. *You don't have to meet with them regularly.
*They can review policies, procedures, practices, documents, etc., and identify risk areas.
Which of the following statements is true regarding developers who plan to allow FHA financing in their subdivisions? *They can only sell to buyers who have FHA loans. *They must follow the FHA's minimum building standards. *They must obtain financing for their subdivision development from the FHA. *They must provide affordable housing in the subdivision.
*They must follow the FHA's minimum building standards.
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
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
Shelly's sponsoring broker has a very hands-off attitude. Shelly and the other licensees at the brokerage rarely receive much attention from him. What type of staffing philosophy appears to be at work at this brokerage? *Development -focused *General oversight *Production-oriented *Unsustainable
*Unsustainable
Risk mitigation means ______. *Deciding that the level of risk requires no action *Deciding to not perform a given activity *Sharing or giving responsibility for the risk to someone else *Using a system to reduce the risk's likelihood or severity
*Using a system to reduce the risk's likelihood or severity
If it's necessary to eliminate positions at your brokerage to save on personnel costs, why is it important to make sure that dismissals do not disproportionately impact any specific category of workers? *The National Association of REALTORS® establishes requirements for the minimum number of employees and independent contractors a brokerage should have. *You could be violating the federal Fair Housing Act if it looks like you're discriminating against a certain category of real estate employees. *You don't want to look like you're discriminating against a particular protected class, which is a violation of employment laws. *You should have an equal number of employees and independent contractors at your firm to avoid violating workplace laws.
*You don't want to look like you're discriminating against a particular protected class, which is a violation of employment laws.
What's an advantage of purchasing an existing brokerage or franchise? *The cost to purchase is low compared to starting up a new brokerage. *The IRS will allow you defer business taxes for one year. *You're buying an existing client base, so you can usually make money right away. *You set up the processes and procedures.
*You're buying an existing client base, so you can usually make money right away.
Every business decision, big and small, must be aligned with ___________ to ensure that you're on the right path. *Those of your business's potential clients *Those of your business's potential lenders *Those of your business's top competitor *Your business plan
*Your business plan