(Practice) Ch. 1 - Introduction to Real Estate

Which of the following statements is not true? A broker may require licensees to carry high levels of automobile insurance. It's a good idea for brokers to carry workers' compensation coverage. A broker is not responsible for the acts of independent contractors. Employee status versus independent contractor status is an IRS issue.

A broker is not responsible for the acts of independent contractors.

Which of the following would be an example of a licensee specializing in business type? A. Jim specializes in clients who want to buy restaurants. B. Alice knows everything about the exclusive east side neighborhoods. C. Tom specializes in options. D. Chris is a buyer's agent.

A. Jim specializes in clients who want to buy restaurants.

Which of the following is not a national real estate trade organization? A. NAR B. CAR C. NAREB D. AREAA

B. CAR

Alice has decided that she will specialize in selling farm land. Which area of specialization would she fall into? A. Geography B. Type of property C. Business type D. Type of client

B. Type of property

Broker Alice has hired several independent contractors in her firm. Which of the these activities does she have control over? A. What the licensees wear. B. What percent of commission the licensees can charge. C. How much time the licensees must spend in the office. D. Whether or not the licensees attend staff meetings.

B. What percent of commission the licensees can charge.

All of the following are true statements about goals except which one? A. Goals should be measurable. B. It's easier to prioritize your tasks if your goals are in writing. C. Once you set a goal you should never change it. D. Goals must be realistic if you hope to accomplish them.

C. Once you set a goal you should never change it.

Which of these statements is true? A. Salesperson Harry can solicit his own listings. B. Salesperson Julie can receive her commission from the cooperating broker in her latest transaction. C. Salespersons must perform all of their activities on behalf of their employing broker. D. Broker Tom has only limited responsibility for the actions of his licensees.

C. Salespersons must perform all of their activities on behalf of their employing broker.

A shopping center would be primarily categorized as what type of property? A. Residential B. Agricultural C. Investment D. Commercial

D. Commercial

Which of the following is NOT a condition of the safe harbor test? A. Person must be properly licensed. B. Gross income must be based on production. C. Clearly written contractor agreement must exist. D. Gross income must be based on hours worked.

D. Gross income must be based on hours worked.

Which of the following circumstances would concern you about working for Broker John? A. John offers weekly training seminars. B. There are several successful agents at John's office. C. John's office has a selection of books, CDs and tapes for agent use. D. John expects his agents to spend 5 hours a week on unsupervised telephone duty.

D. John expects his agents to spend 5 hours a week on unsupervised telephone duty.