Real Estate Brokerage

Real Dealz Brokerage Corporation was just found guilty of numerous violations of the Sherman Antitrust Act. The corporation may face a maximum penalty of up to _________.

$100 million

On a balance sheet, which of the following would be considered a liability?

A debt owed

A strategy is ________.

A plan to achieve a certain goal

Allison is working on implementing her business plan. Unfortunately, she keeps getting strategy and tactics confused. Which of the following is a true statement?

A tactic is how a company will something.

Maribeth runs a brokerage firm that has a centralized organizational structure. This is typified by _______.

A vertical chain of command

In a SMART goal, the A stands for ____/

Achievable

Which of the following is an example of horizontal growth?

Adding commercial sales ventures to a residential sales office

A public cloud is available to anyone with _______.

An account and password

Which of the following should a broker do first when refocusing the firm's niche area?

Analyze existing operations to redirect existing resources.

What's the best definition of a branding opportunity?

Any activity that gets your brand in front of the marketplace

Of the following, which only includes types of binding resolutions?

Arbitration and litigation

The final product that results from developing the vision, mission, goals, objectives, strategies, and tactics is _________.

Business Plan

Which of the following statements describes business objectives?

Business objectives are derived from situational analysis data and align with and expand upon the company's mission to define what the organization will focus on for the duration of its long-range plan.

Which of the following economic indicators most closely relates to consumer confidence?

CCI

Which of the following factors contributes to the success of your firm's pricing strategy?

Careful analysis to discover which strategies best fit your firm, clients, and market

A brokerage can make its training classes most effective by __________.

Clearly defining the training topic and benefit to the associates so they understand how it's relevant to them

The cash flow statement includes which of the following?

Commissions Paid

Broker Alex learns that his friend Joann is frustrated with the broker who listed her home. Alex encourages her to break her existing agency agreement and sign with him instead. This violation is an example of ____________.

Contractual Interference

Which of the following is true about corporations?

Corporations are sole legal entities created under state law.

Inaccurate buyer qualification processes may contribute to rocky conditions on the way to closing. Which of the following is another external factor that may endanger the closing?

Cumbersome closing regulations or settlement procedures.

During arbitration, the arbitrator will hear both sided and then render a/an __________.

Decision

What is a good way to determine a competitor's strength

Determine its market share.

Gabrielle is careful to share with her sellers all information that's pertinent to her transaction with them. Which fiduciary duty does this represent?

Disclosure

Which of the following is a recommended activity when conducting a new worker orientation at a brokerage?

Discuss the brokerage's expectations of it workers.

Which classification of employees does the Occupational Safety and Heath Act (OSHA) primarily address?

Employees

Designated broker Kamil discusses antitrust scenarios at staff and makes certain his firm makes independent decisions about co-op fees because he knows avoiding antitrust violations is critical. Which of the following actions should Kamil suggest his staff members take to avoid price fixing allegations?

Establish fees independently or as a company.

Direct mail to residents in your listing's neighborhood not only markets the property, but may also _______.

Generate new client leads

What would be a good way to adopt a multicultural business strategy?

Hire employees who speak another language

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

Historical

Which term means the growth of a business through existing services and methods, or ones similar to them, over a larger market area?

Horizontal expansion

A broker is concerned about the potential for litigation as a result of actions his licensees may take. He's implementing a risk management plan to reduce the level of risk his firm faces. What's the first step he should take?

Identify the specific risks that are most likely or are most damaging at his firm.

A tornado whipped through seller Archie's neighborhood, destroying his house and several others on the block. Now he can't sell to Finley, the buyer. What's this an example of?

Impossibility of performance

The marketing plan should be developed ______.

In support of the mission statement and business plan

Brandi has just increased the size of her brokerage from one person to eight. She can expect _____.

Increased Costs

Which of the following is potential issue with promoting from within the firm?

Increased competitiveness for the same position

Amanda wants to know how long, on average, homes are staying on the market before they sell. What market indicator can giver her this information?

Inventory Rates

What's one reason a leader should establish mutual respect?

It fosters loyalty

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.

What business purpose is served by a managing broker adopting an abundance mentality?

It increases everyone's business

Which of the following is a characteristic of a commission-based pricing structure?

It's sometimes hard for clients to see the value in the commission charged.

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

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

Long-range plan

Broker Regina tells her client that property is zoned as residential, even though she's pretty sure it's zoned commercial. This violation is an example of ________.

Making a substantial and willful misrepresentation

Which of the following statements related to a firm's culture are true?

Management is responsible for developing a culture that encourages and rewards great customer service.

Which of the following is a broker-owner's responsibility?

Managing and training their people

What analysis type can BEST help a brokerage determine optimum office location?

Market Analysis

Two designated agents, Mitch and Mickey, represent the buyer and seller in a single transaction, respectively. What else do you know about the agency situation?

Mitch and Mickey are from the same brokerage; their broker is a dual agent.

What does greater growth mean to a brokerage?

More complex operations

Which professional association has as its mission to "advance sustainable Hispanic home ownership"?

NAHREP

When preparing a purchase agreement, when is it appropriate for a licensee to offer legal advice to the client?

Never

A listing ad in the Spartanville Tribune states, "Within walking distance to restaurants, nightclubs, shopping, and schools." Does this violate fair housing law?

No, because "walking distance" refers to a property-related factor.

Five competing licensees in the same area agreed to cooperate in setting a standard commission rate for the area. This makes them guilty of a per se antitrust violation. What is a per se antitrust violation?

One in which no intent needs to be proven to establish a violation has occurred

Management of cash flow and expenses involves _________.

Planning and continuous review

Agreeing to a specific price, price range, or minimum or maximum charges among competing firms is an example of which type of antitrust violation?

Price Fixing

Monica is now supervising 25 new associate brokers form another country within her brokerage. Their command of the English language varies, but their work ethic is solid, and their experience is great. What can Monica do to support their success?

Provide English as a Second Language classes.

The purpose of a variable expense budget, monthly operating budget, or profit center budget is to ________.

Provide more detail than the general operating budget

Which of these professional development opportunities is best way for a licensee to receive a quick introduction to a topic from a expert, or to dive more deeply into an area with other experienced professionals?

Real estate seminar

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

Review, plan and forecast proactively

What's the role of a server in a business's computer system?

Runs programs, stores files, and sends information to connected computers

Which of these would be an advantage for the broker of hiring licensees as salaried employees, rather than as independent contractors on a commission-based compensation plan?

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

Danielle needs to train all new associates on brokerage policies, and also wants current associates to receive a yearly refresher on this topic. She realizes that she'll be delivering the same material over and over again as new people come on board and current associates reach their anniversary dates. Which delivery option would you suggest Danielle use for this instruction?

Self-paced computer-based training

Which element of a company's computer system runs programs, stores files, and sends information to connected computers?

Server

Maury noticed that no one else in his market area was offering relocation services, so he added this to the many benefits he provided to his clients. What type of horizontal expansion did Maury do?

Service

Which term means the growth of business by offering services to a different niche or by offering a wide variety of services?

Service expansion

With the results of SWOT exercise, a broker could use it to do all these EXCEPT _________.

Share it with customers

Minimizing risk in part means avoiding public networks, unsecure sites, and ________ sites.

Suspicious

In 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."

TRUE

Which of the following means a short statement that describes your brand's purpose?

Tagline

Facility manager George is finalizing the company's offer to buy the land adjacent to the office building. What area of facility management is George working in?

Tendering

Best Brokerage has a business goal of capturing a larger percentage of the local residential real market than any other residential brokerage in the area. Its mission statement is: "Our clients come first, and so do our sales." Which of the following staffing philosophies does this brokerage most likely use?

The broker will sponsor many licensees, both new and experienced, and expects this will lead to capturing larger market share.

What's vertical expansion as it related to a real estate brokerage?

The growth of a business through expanding services that are complementary but aren't typical real estate services

When it comes to earning revenue, the broker should look at tow key factors: the brokerage salespeople's level of experiences and _________.

The number of salespeople at the brokerage

Monty is advertising a number of listings in the local newspaper and includes the fair housing logo in the ad. What is required?

The verbiage, "Equal Opportunity Housing"

Raven was a broker-associate at NRG Realty. Now she's taken on the role of managing broker. What might make this transition especially difficult for Raven?

Those who knew her before in one role may have difficulty accepting her in the new role.

If a broker gives licensees a higher split, how are the brokerage expenses covered?

Through additional fees charge to licensees for services

Why should a business owner evaluate the competition's affiliation?

To determine what help or hindrance the association provides

Rachel is a new managing broker. The best reason for her to adopt an appropriate management style is ________.

To protect her license

Why would a financing portfolio be needed?

To request funding from lenders or investors

Charli has chosen to purchase only liability insurance on the office building she owns. Which of the following combination of risk handling is he using?

Transfer and acceptance

Violators of the Sherman Antitrust Act may be subject to fines. For what amount may corporations and individuals be liable?

Up to $100 million for corporations and $1 million for individuals

If the responsible parties refuse to clean up hazardous contamination, the EPA can hire its own contractors and seek damages in court for ________.

Up to three times the actual cleanup costs

What should be kept in mind when offering personal guarantees in commercial lease negotiation?

Use caution

Select the risk that is more industry-specific rather than general in nature.

Violation of fiduciary duties

When selecting a site for a brokerage, in addition to suiting your purpose and cost efficiency, what else should you consider?

Visibility

Geneva's looking for office space to accommodate her in-house staff and to meet the needs of the virtual sales team who are often in a hurry to print or scan documents and flyers and pick up signage. Of these options, which is the highest priority?

Work/equipment area

You've given your lender a copy of your year-end financial statements, hoping to qualify for a loan to fund your expansion. Your loan is approved, but then you discover that the statements were inaccurate and net profit was overstated. What's the potential impact of this error?

Your lender may be concerned that the loan was approved based on inaccurate financial statements.

Handling of trust or escrow accounts is regulated by

Your state's regulatory agency

How much data should you gather about your firm?

gather data that will provide you with information that you'll use to improve operations.