Texas Real Estate Brokerage SAE

Management Style

When discussing a merger, what would corporate cultural fit relate to?

Attorney General The attorney general may bring federal antitrust suits on behalf of individuals who live within the state, through the legal concept of parens patriae, or on behalf of the state as a purchaser.

Which entity has the authority to represent the state and citizens of the state in antitrust cases?

Vertical chain of command

Which of the following is a characteristic of centralized organizational structures?

Values

Leaders communicate and live by their ______.

Federal Trade Commission Act The Federal Trade Commission Act created the FTC. This agency investigates practices and will stop companies and individuals from committing antitrust violations.

Which act created an agency to investigate antitrust practices?

Quack-a-Doodle-Doo Realty

Which of the following business names would be the most likely outcome of a merger between Duck Realty and Rooster Realty

Tactical planning Tactical planning is the most granular level of planning. Once the long-range plan has been broken down into smaller tasks, the management and staff are responsible for carrying out the tactics.

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?

Employment Level

Which of the following demographic data points would a brokerage be most interested in when evaluating a market?

The Occupational Safety and Health Act The Occupational Safety and Health Act primarily addresses the rights of employees, not independent contractors. The self-employed aren't covered under OSHA.

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

Estoppel

Which of the following has the legal effect of preventing a person from making a claim based on her prior behavior or statements?

Match revenue and expenses with cash flow.

Which of the following is a good cash management technique?

Decisiveness

Which of these leadership traits is useful in a crisis and in establishing work flow?

Tax Because property taxes increase at a constant rate in many areas, the tax clause is becoming increasingly common in office leases—even on short-term leases.

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?

You and your staff

Who has the best information about your firm's operations to assist in writing your disaster recovery plan?

Talk to them each individually to clarify the situation.

You're a broker, and lately you've noticed that three of your licensees seem to be constantly sniping at each other. It's affecting everyone at the brokerage. What should you do?

Historical To gain a true view of firm's financial position, evaluate the current and previous

A ______ analyses of the balance sheet and its related ratios provides the clearest picture of a firm's financial health.

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

A broker is training all affiliated licensees on a recent change in fair housing laws. Why should she deliver the training to new licensees separately from experienced salespeople?

Supervise Independent contractors are to be supervised, not managed or directed.

A broker must ______ independent contractors.

The services your customers want

A market analysis can help you decide which office and business systems you need. Which of the following can be determined from your market analysis?

general operating budget

A variable expense budget, monthly operating budget, or profit center budget is prepared using the ___ as a basis.

Anittrust

Activities that restrain trade and reduce competition and choices for consumers are considered to be what kind of violations?

The policies and procedures manual

Which of the following is one of a firm's best defenses against damage to its image

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

Although training delivered via a recorded webinar may not be very engaging for a learner, it does have one advantage over other training delivery methods. What is it?

He wants control over branding. Sole proprietorships offer complete control but no personal protection.

Arnold plans to open a brokerage. What might make him select a sole proprietorship legal structure?

Line (Judy has line authority because she's directly responsible for achieving the company's financial goals.)

As manager of the sales team, Judy has direct responsibility for reaching the company's financial goals. What type of authority does Judy have?

Automatic renewal This situation is an example of an automatic renewal clause.

Carmen's original one-year commercial lease has ended, and now, with her landlord's permission, she has gone into a month-to-month lease situation. What type of clause was in the original lease agreement that enabled this situation to occur?

Dictatorial They're effective in crises and when an employee or a group needs brought into line.

Coercive and ____ management styles are similar in their demand for action.

The number of licensees to use

Which of the following is one of the key decisions a brokerage makes when deciding how to staff the sales force?

Active

Deidre owns her own brokerage firm. In addition to running the business, she continues to assist clients and manage transactions. What type of broker-owner is she?

Damage to the building from the storm and melting snow could destroy Jarrod's office and records.

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?

Results A broker/independent contractor relationship is one in which the broker is primarily concerned with the end result of listing and selling property, and leaves the day-to-day decisions on how things are done to the salesperson.

In a broker/independent contractor relationship, the broker is primarily concerned with what?

Due to circumstances beyond their control, the parties can't legally or practically do what they've agreed to do.

In which of the following scenarios is impossibility of contract performance occurring?

Misrepresentation

Mortgage Fraud is considered

Manage

Retaining paper and electronic records of transactional documents for the time period prescribed by your regulating authority helps to ______ risk.

Using a system to reduce the risk's likelihood or severity

Risk mitigation means ______

Acceptance

Rogelio and Carla's firm identified three risk sources as high level (6 and 9 on their ranking scale). They've set themselves up for disaster by using ___ as their risk management strategy.

Delegator

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?

FHA approval for subdivisions that plan to allow FHA financing FHA approval for subdivisions that plan to allow FHA financing is one of the four federal government controls that can affect development and investment projects.

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.

The cash flow statement The cash flow statement helps match income to expenses for any given month, indicating whether additional cash will be needed.

Which of the following itemizes income to expenses for given month?

Risk is and inherent part of real estate activities. E&O insurance is necessary for all licensees because risk is an inherent part of real estate activities.

Why is error and omissions insurance recommended for all licensees?

Triple Net lease With a gross lease, the landlord typically pays these expenses. With a triple net lease, the tenant pays all three. To help you remember this, the first letter in the three expenses (taxes, insurance, and maintenance) spell out TIM.

With this type of commercial lease, the tenant typically pays the taxes, insurance, and maintenance expenses.

Brainstorm a solution. The third step in this process is to brainstorm the solution. Some problems will have a fairly straightforward solution, while others will be more complex.

You're a broker who sees a potential issue with your licensee, Joss. You've identified the problem behavior and analyzed the problem. What is the next step in the problem-solving process for personnel issues?

Video A video allows learners to see the physical details of the appraiser's inspections without requiring each individual to be present tat the property being appraised.

A broker wants his associates to know how an appraiser performs a physical inspection of a property so they'll e more familiar with the information they see in an appraisal report. Which of the following delivery options would make this training mot effective for his associates?

The technology tools and physical environment that the job requires

A broker wants to make sure that her sales associates can perform as effectively as possible. She uses a solid business model and a clear business mission; she communicates expectations to her licensees; she recognizes their efforts and compensates them fairly; and she provides the training they need. What else should she make sure her licensees have to allow them to perform at their best?

Birth

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

The company's mission statement

A general business objective is designed to expand on which of the following?

Culture of retention

A(n) ______ is certain to save a brokerage money

No. However, in some situations, Tanner's attempts at training and enforcement may help lessen sanctions against him. Though technically Tanner is responsible, if he can prove that the firm has policies and procedures in place and that he provides training and coaching to licensees, he may receive less blame than he might otherwise.

As the supervising broker, tanner makes sure that the firm's policies and procedures manual is updated regularly and is enforced. He provides formal and informal training on the manual's contents. Does this relieve Tanner of vicarious liability if a licensee performs an unethical act?

This is a valid reason to terminate the licensee's affiliation with the broker.

Broker Craig fires salesperson Enrique for violating a provision of the license law. Which of the following is true of this situation?

As more staff is hired, she will spend more time managing sales staff.

Broker Donna plans to hire three licensees to begin growing her business from a one-agent to a four-agent firm. What tip would you offer Donna regarding the impact of growth on her as the broker-owner?

Making a plan and implementing it is essential to the future success of an organization.

Broker Millie wants to start her own brokerage. The market is hot right now, and she wants to get her brokerage up and running ASAP. Once things slow down a little, she'll figure out a business plan and other details. Which of the following is true of this situation?

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

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?

Base her compensation on her sales output

Broker Saul has just signed a written agreement with his newest licensee, Jill, stating that Jill is an independent contractor. To ensure Jill is properly classified, Saul should do which of the following?

Lost productivity

Broker Tiffany does her best to make her licensees satisfied they've affiliated with her, in part because replacing them costs her brokerage in time, expense, and _____

Leave clients unattended in the office.

Everything in your office is potentially at risk from thieves and other criminals. Because of this, what should you never do?

Is she interested in promotion? Before spending time to evaluate Harriet's skills related to promotion, managers should find out if Harriet is even interested in being promoted.

Harriet is a hard worker. Of all of the unlicensed staff, she receives the most consistently positive evaluations from her boss. She's the face of the firm, greeting walk-in and telephone clients with a friendly, efficient manner. She knows exactly where to find anything and any information she and her colleagues need. What's the first question managers should ask when determining if Harriet is suitable for promotion?

TRUE The ADA doesn't apply to residential housing. Instead, it applies to public places such as stores, restaurants, and office buildings.

Is this true, false or something else? "With respect to persons with disabilities, the Fair Housing Act regulates housing-related issues, and the Americans with Disabilities Act regulates issues related to public spaces. "

To detail all costs Jennings will owe at closing

Jennings has received a Closing Disclosure from his lender. What's the purpose of this form?

Corporation

Jorge works at a firm where elected officers govern the affairs of the organization, while a licensed broker, Shonda, is directly responsible for the real estate transactions. The officers and Shonda are responsible to a large number of stockholders. What type of legal structure is this?

Value Katrina and Greg are comparing the overall value of the services they will use to sell their home.

Katrina and Greg are selecting a firm and a licensee to help them sell their home. They're comparing commission-based and flat-fee listing services. The commission-based service will cost more, but they'll have a licensee who performs most of the work. The flat-fee listing service costs much less, but they'll have to do more of the work. What marketing model concept will their decision represent?

It helps to ensure that well-trained talent is available in the event that a critical position becomes vacant. Succession planning not only ensures that a solid pipeline of qualified individuals is ready to move into critical positions, but it also motivates staff to perform at a high level in order to e considered for promotion.

Loronda is working on her business plan in preparation for opening her own brokerage. Why should she consider including succession planning in her plan?

Long-range plan The terms "blueprint" and "long-range plan" are used interchangeably in business.

Marc is working on the "blueprint" for his brokerage, which is another term for the brokerage's ______.

Fraudulent misrepresentation Mortgage fraud is a form of fraudulent misrepresentation that, because it's become so prevalent, has been named as its own category of fraud.

Mortgage Fraud is considered __

Sales Contract

Offer to purchase, sales agreement, contract of purchase and sale, and purchase agreement are other names for the ______.

No, because it's not time-based.

Olivia, the owner of Your Home Brokerage, develops a goal for all of her licensees: Increase sales by 15%. Is this a SMART goal?

They require you to pay franchise fees.

One drawback to franchises is ___

Performance

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.

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

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?

Client data can be exposed when a brokerage's computer system is compromised.

Technology poses risks for everyone, but real estate licensees need to be especially careful. Which of the following is true about risks related to computer systems?

Internal equity compensation plans should be fair from both an external and internal perspective. Internal equity means workers are paid fairly in relation to the work they do, and when compared to others who work there.

The compensation plan at Giny'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?

The agreement between the two firms

Two large local brokerage firms agreed to lower their commission rates to the same amount—approximately 1% less than any other firm in town. After extensive marketing of their new lower rate, these two firms began to see a big increase in the number of listings they received, costing their competitors substantial amounts of money. What about this situation makes it a per se antitrust violation?

Liability for someone else's acts or omissions

Vicarious Liability

Indirect Marketing is a strategic process that impacts all departments in a firm. Its impact on sales is critical, but indirect

What impact do marketing efforts have on sales?

The strengths, weaknesses, opportunities, and threats facing a business

What is a SWOT analysis useful for determining?

The marketing department is an integral component of the firm's activities.

What is the relationship between the marketing department's efforts and those of other departments in the firm?

Vicarious liability

What legal concept relates to a broker's responsibility for licensee misconduct?

Different language

What's an obstacle to working with culturally diverse populations?

Purpose of business

What's the most important determining factor for the type of office the brokerage needs and the systems required?

Describes how a person in a position relates and interfaces with others.

What's the purpose of a job description?

Add a standard addendum using standard language.

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

It is a secure website.

When a website has an S in the "http" portion of the URL, such as: "https://www.google.com," what does it mean?

Require identification from customers and clients before real estate professionals go into the field with them.

Which of the following is a good example of proper safety and security measures for employees at a brokerage office?

To form a larger company that is more competitive

Which of the following is a good reason to merge with or acquire another company?

Keep keys locked in a secure location.

Which of the following is a good way to ensure safety and security of properties listed by your brokerage?

Average days on market

Which of the following is an industry trend that a brokerage should track?

It covers licensees sued by consumers for inadvertent mistakes.

Which of the following is true about errors and omissions insurance

Files can be used for operations analysis. Retention of transaction files is important for two reasons: to meet state regulatory requirements and to analyze business operations.

Which of the following represents a reason for maintaining complete transaction files?

There should be consequences for violating the firm's code of ethics, and these consequences should be communicated and documented.

Which of the following statements about enforcing a firm's code of ethics is true?

The licensees don't do any active selling. The licensees at an LFRO gather referrals and feed them to a full-service brokerage but don't do any active selling.

Which of the following statements is true regarding licensees who work at a limited function referral organization?

It has a horizontal structure. A decentralized structure is more efficient for larger organizations. There are few levels of management at the top.

Which of these describes a decentralized management system?

Diversity

______ in a brokerage may include a variety of skills, language, personalities, and cultural backgrounds.

The growth of a business through the gradual adoption of new services and increases in market share

How is organic growth defined?

Review, plan, and forecast proactively

How may a broker effectively manage the firm's cash flow and expenses?

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.

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.

Building codes and standards

If a developer wishes to make FHA loans available to future buyers, what must she keep in mind when working on a development

Feelers Feelers are the people in your office who are always looking out for everyone else. This is the personality type that is perfect for heading up your community service project.

If you need an employee to take charge of a commuity service project, which personality type would be your best pick for the project?

He'll have less time to grow the business. As a business grows and more staff is hired, the broker-owner must spend more time managing sales staff and less time on activities to grow the business. With more sales staff, revenue responsibility is shared.

Georgio, a managing broker, has just increased the size of his firm from 2 to 13 licensees. What can he expect?