RE Brokerage Final Exam

Sales meetings can be used to build a team dynamic among a broker's licensees. Which of these sales meeting agenda items would be best for that purpose?

A "guess the listing" contest

In addition to fines, individuals who violate antitrust laws may face imprisonment for up to what length of time?

10 years

Rachel is subject to court-ordered supervision due to an antitrust violation. This oversight may continue for as long as ______.

10 years

The concept of _______ introduces new business opportunities to individuals who want to explore places with unique characteristics.

Mobility

Which of the current real estate market outlooks identified by realtor.com is good news for buyers interested in new single-family homes?

More affordable housing will be built.

Associating his brokerage with nationally known Intergalactic Homes Corp. allowed Mario to capitalize on its reputation and brand and ramp up his business quickly. Mario figured this was a fine trade for having less decision-making authority. What mode of business operation has Mario chosen?

National corporation affiliation

Which personality type handles unpredictable situations with ease?

Perceivers

Rust Brokerage is run as a lean machine and requires its employees to be both productive and cost-efficient. It pays employees on a scale that relates their worth to how much their work has contributed to overall revenue. This reflects a(n) ______ compensation philosophy.

Performance

Which of the following is an example of a challenging business plan concept?

Planning takes time and money up front.

Which one of the following strategies is most likely to make a brokerage's sales meetings well-attended?

Presentation of relevant information

What action does RESPA prevent brokers from performing?

Providing kickbacks to settlement providers

What will the Federal Trade Commission do if it's working on a case that involves an allegation of a criminal antitrust violation?

Refer it to the U.S. Department of Justice.

Broker Beverly has started her own firm and wants to determine the various risks that accompany having your own real estate company. What's the process she'll use to determine these risks?

Risk identification

Which tactic is directly tied to the strategy, "Train all brokers and licensees to use virtual meeting software"?

Schedule training sessions for all staff members.

Broker Amanda is getting discouraged. Even though she's only had her brokerage open for a few months, she's having second thoughts about her business's original long-range plan. What should she do?

She should stick with the original long-range plan until she's established her company's position in the marketplace.

The first part of analyzing risk is to determine what aspect of the risk?

Source

Carlton manages the marketing team whose members are busy working on a campaign to attract sellers to a newly developed neighborhood. This is part of the company's goal to increase sales in the region. What kind of authority does Carlton have?

Staff

Which of the following dictates the most important requirements for transaction record retention?

State laws and regulations

In what worker classification are real estate agents placed as long as they meet the three requirements stipulated by the IRS?

Statutory non-employees

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?

Suggest that her client contact a roofing expert to make a determination.

Two real estate firms in one small town, Vineyard Realty and Homestead Homes, agreed 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 Sherman Antitrust Act of 1890

______ enforces the Canons of Professional Ethics and Conduct in Texas.

The Texas Real Estate Commission

Which of the following statements is true about regulatory oversight of antitrust cases at the state level?

The attorney general has the authority to act in parens patriae for the citizens and the state.

Which is most closely related to the dramatic increase in the number of touches you must have in order to be remembered by your target audience?

The general bombardment of messages everyone receives daily

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 is a licensed real estate agent.

Sue, a managing broker, is reviewing the structure of her sales force so she can do a better job at reaching her revenue goals. Two of the primary factors she'll look at are the overall experience of her sales force and the ______.

The number of salespeople she has

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

Which of the following actions can licensees take related to signs?

They can place signs on an owner's property with the owner's written consent.

Which of the following is an example of an illegal tie-in arrangement?

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

Which of the following statements is true about the classification of a licensee as an independent contractor?

Both a written agreement between the broker and licensee defining the licensee as an independent contractor and the broker's behavior toward the licensee are required to confirm that the licensee is an independent contractor.

Branding Iron Properties focuses on sales to investors, so most of the firm's sellers are experienced with the real estate transaction process. The firm uses a fee-for-services structure. Sellers can select levels of service ranging from a listing-only service to full representation, from listing to closing. Sellers pay as they go through the process. This is an example of the ______ marketing component.

Exchanging

Stu is a manager at ABC Brokerage. He's classified as an exempt worker. What does this mean?

He is not eligible for overtime pay.

A leader who displays the quality of being a visionary is able to do what?

Look ahead at trends to meet future market demands

It's October, and actual revenue for the year exceeds budgeted revenue by 32%. What should you do?

Add at least a portion of the excess to your reserve account or pay off some loan principal.

Dave is considering the needs of his sales staff who work from home. Which of the following should he focus on?

Ensuring that licensees are practicing within the scope of their licenses

Diamond Brokerage is a large brokerage that increases the pay of employees primarily based on how long they've been employed there. This is called a(n) ______ compensation philosophy.

Entitlement

Substantial contract performance has occurred when ______.

Essential elements of the contract have been completed, but perhaps not to the exact contract specifications

Which of the following describes the purpose of a formal chain of command?

Establishes a reporting structure

When risk factors are known, what's the next step in risk management?

Evaluate alternatives

John, a personal assistant, advised Shelly, who is a client of John's supervisor, Bill, about a negotiation strategy. John is ______.

Acting legally, provided he has a real estate license

When a sales contract doesn't cover the terms needed by the parties, which of the following actions is a licensee allowed to take?

Add a standard addendum using standard language.

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

Even though the Federal Trade Commission is concerned with all ad claims, what sort of ads would most likely concern the commission?

Any ad that makes a health or safety claim or any claim that's difficult for the consumer to evaluate

How does assignment differ from novation?

Assignment doesn't require agreement of all the parties.

Which of the following statements is true about a centralized management system?

Authority is heavily concentrated at the top.

Expenses may be listed on the income statement either in order from largest to smallest or ______.

Based on the order they're listed in the general ledger

Why is vertical growth considered riskier than horizontal growth?

Because vertical growth involves expanding into significantly different ventures

Which of the following would be an appropriate marketing department goal statement?

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

Avalanche Developing is building a new urban, mixed-used development that will cater to young singles and couples who are just starting their careers. Of the following, which is the best advertising medium for marketing this upcoming development?

Billboards

Which of the following is an indicator of a market's regulatory environment?

Building codes

A broker can best support licensee productivity by providing training on ______.

Business planning

Carmen is a new licensee who wants to drum up some business. There are a lot of high-end homes in her area, and she would love to sell one of them. She sees a few for sale signs and thinks perhaps she could convince the sellers to drop their current agent and allow her to represent them. Which of the following is true?

Carmen may not try to persuade sellers to break the contract they have with another licensee.

Why do most people move?

Change in employment

Managers have a tendency to be more authoritarian in style, while leaders tend to be more ______.

Charismatic

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?

Communication

The ______ shows whether the firm has enough assets to cover its obligations.

Current ratio

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

What's the last stage of a business life cycle?

Death

Trendsetter Realty's website includes a short video called "Listing Your Home," which describes how the listing and sales processes work, and the services that Trendsetter provides during the sales process. Which of the following marketing components does this represent?

Delivering

Which of the following is considered illegal based on a buyer's race, color, national origin, sex, religion, familial status, or disability?

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

Which of the following should be included in the design for a conference room?

Direct access from public area

Which type of compensation plan benefits inexperienced real estate agents the most?

Employee salary

______ 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

Which of the following statements regarding employment-at-will is true?

Employment-at-will is a doctrine that's used in all states, but each state may apply it differently.

Which one of the following contracts has terms yet to be completed?

Executory

The success of a brokerage manager measured primarily by ______.

How well they influence the work of others

While conducting an exit interview with licensee Virginia, broker Hugo is unprepared for the negative tone of Virginia's comments, and her blunt criticism of the brokerage. How should he respond?

Hugo should listen empathetically, without arguing with Virginia or trying to defend the organization.

Which of the following represents an objective that supports the marketing goal of "be the top annual sales producer in our firm's region"?

Increase sales by 20%.

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_______________."

Increasing sustainable home ownership in the Asian community

A fixed expense ______.

Isn't impacted by sales

What's the purpose of a SWOT analysis?

It helps form a vision statement.

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.

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.

After years of dreaming of starting a real estate brokerage, Alison Jones is taking steps to make her dream a reality. Her mentor, James Jewels, a successful brokerage owner, has explained that having a business plan is both smart and necessary. He says that some companies fail because they don't plan sufficiently (or at all) for various reasons. Which of the following is one common reason companies fail to develop and implement a business plan?

Lack of talent

Which of the following is a test the IRS uses for establishing a licensee as a self-employed independent contractor?

Language in the written agreement states that the licensee will not be treated as an employee for federal tax purposes.

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

Larger

A ______ is an obligation to pay someone an amount that's due.

Liability

Workers who are eligible for overtime pay are said to be ______.

Non-exempt

Independent contractors are covered under which employment protection act?

None

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?

One

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?

Open agency

If an individual acquires rights or liabilities automatically due to law, and not through an agreement or act of their own, this is known as ______.

Operation of law

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?

Organic growth

When an amount budgeted for a specific line item has been overspent, what has occurred?

Overrun

Brokerage firms must continually evaluate and adapt to change. Which of the following represents a currently emerging trend that must be addressed by firms?

Sustainability

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?

Tactical planning

Broker Finn is looking at the strategies to plan his brokerage's next move. Which of the following will be used to carry out the plan?

Tactics

Which special lease clause stipulates that the tenant is responsible for paying any increase in taxes over the base year's taxes, in addition to the base rent?

Tax

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.

Which of the following establishes requirements for employers to provide a safe and healthy workplace for their employees?

The Occupational Safety and Health Act

How might you indirectly convey a brand statement to your market?

Through word of mouth

Which of these has examples of antitrust violations common to real estate?

Tie-in arrangements, market allocation agreements, and group boycotting

What is the purpose of developing a marketing plan for your brokerage?

To analyze the competition.

A ______ plan for a merger should include financial guidelines for how each firm will share profits in the future.

Transition

Alison has written the mission and vision statements for her brokerage, Honesty Homes. Armed with those and the situational analysis data, she's ready to begin forming business objectives. Starting out, her brokerage will be small, with only three licensees and a part-time administrative assistant. How many objectives would be reasonable to start off with?

Two

Rowena breaks the utilities budget of $5,200 into three smaller categories: electricity, $3,900; natural gas, $1,200; and trash disposal, $100. This is an example of calculations for a _______.

Variable expense budget

Which of the following best describes a broker's supervisory requirements?

Varied

Ricky is working for Matt, a buyer client, who is interested in a property at which the listing agent offers compensation to cooperating agents. The listing agent has offered Ricky or any cooperating agent additional compensation if the transaction closes within 40 days. Is this ethical?

Yes, but only if all of the involved parties have full knowledge and provide consent.

What can you learn from figuring out the market share of your target market?

You can figure out how big of a player the competitors are in your market.

What's the difference between your brokerage's brand identity and its image?

Your brand identity is how you visually express what your firm is; your image is how the marketplace perceives you.