Real Estate Brokerage: A Management Guide v1.0 Quiz

How long have economic cycles historically lasted? A) 18 months to a decade B) One or two years C) 6 months to a year D) Two years or more

18 months to a decade

A brokerage firm had 75 transactions last month with a volume of $17,400,000. The broker checked the MLS figures for the city, and it showed there were 361 transactions with a volume of $89,240,000. What is the firm's percentage market share based on volume? A) 21.2% B) 19.5% C) 20.8% D) 18.3%

19.5% The answer is 19.5%. Divide the company's volume by the total MLS volume. $17,400,000 ÷ $89,240,000 = .195.

The economy runs in cycles, or waves, and the historical average is about A) 5.5 years. B) 12 years. C) 18 months. D) 6 months.

5.5 years.

Susan's brokerage firm sold 1,430 properties last year. If the total number of sales in the MLS was 21,325, Susan's market share would be A) 12.4%. B) 14.8%. C) 8.8%. D) 6.7%.

6.7%. The answer is 6.7%. Divide Susan's sales by the total MLS sales. 1,430 ÷ 21,325 = .067.

A company about to prepare a business plan should realize which principal of performing a market analysis? A) Because consumer behavior remains static, there is no need to perform a market analysis. B) A company needs to conduct a thorough market analysis before attempting to create a business plan. C) A market analysis converts hard evidence into what the company believes to be true. D) What a company believes to be true is always supported by hard market evidence.

A company needs to conduct a thorough market analysis before attempting to create a business plan.

A company about to prepare a business plan should realize which principal of performing a market analysis? A) What a company believes to be true is always supported by hard market evidence. B) A company needs to conduct a thorough market analysis before attempting to create a business plan. C) Because consumer behavior remains static, there is no need to perform a market analysis. D) A market analysis converts hard evidence into what the company believes to be true.

A company needs to conduct a thorough market analysis before attempting to create a business plan.

What is a problem with Internet Data Exchanges (IDXs)? A) No standardized format for updating listing information B) Exclude nonmembers from accessing the listings C) Allow consumers to view many listings D) Allow third-party internet companies to sell leads to companies' own listings

Allow third-party internet companies to sell leads to companies' own listings

Which of the following is a way that a brokerage firm can expand the geographic scope of its services? A) An affiliation with referral networks B) Buyer brokerage C) Niche marketing D) Cost-of-living comparisons

An affiliation with referral networks

Which real estate trend may cause MLSs to consolidate? A) Business no longer defined by narrow geographic boundaries B) Home mortgage lenders loosening underwriting standards C) Increasing homeownership rates of Generation Y D) Baby boomer real estate professionals aging and retiring

Business no longer defined by narrow geographic boundaries

Which real estate trend may cause MLSs to consolidate? A) Business no longer defined by narrow geographic boundaries B) Increasing homeownership rates of Generation Y C) Home mortgage lenders loosening underwriting standards D) Baby boomer real estate professionals aging and retiring

Business no longer defined by narrow geographic boundaries

How should a manager deal with stress? A) Change attitudes or the situations that cause stress B) Take more courses to enhance professional competency C) Ignore personal stress and concentrate on the behavior of others D) Work longer hours to get everything done

Change attitudes or the situations that cause stress

What is one of the MOST difficult parts of becoming a sales manager in a real estate office? A) Labeling salespeople with an appropriate moniker or handle B) Winning the popularity contest with the salespeople C) Learning transaction or technical skills D) Changing from being a doer to a supervisor

Changing from being a doer to a supervisor

While predicting entrepreneurial skills is difficult, what is the one specific trait that does seem to stand out in predicting entrepreneurial success? A) Decisive decision-making skills B) Confidence and ability to build a successful business C) Accountability D) Ability to delegate tasks

Confidence and ability to build a successful business

By 2019, economists began predicting which phase of the economic cycle? A) Trough B) Contraction C) Expansion D) Peak

Contraction

In early 2020, the global pandemic abruptly started which economic cycle? A) Trough B) Expansion C) Contraction D) Peak

Contraction

Brokers who belong to the MLS agree to follow what tenets of the MLS system? A) Commissions and coordination B) Obedience and disclosure C) Cooperation and compensation D) Communication and loyalty

Cooperation and compensation

Brokers who belong to the MLS agree to follow what tenets of the MLS system? A) Obedience and disclosure B) Cooperation and compensation C) Communication and loyalty D) Commissions and coordination

Cooperation and compensation

What should a newly appointed manager do to gain cooperation from those who are supervised? A) Just take over and do things that the manager knows she can do better B) Make decisions that are popular with everyone C) Remind subordinates that he was once one of them and understands what they are going through D) Demonstrate genuine respect for the position and the people being supervised

Demonstrate genuine respect for the position and the people being supervised

Which of the following is a characteristic of an effective manager? A) Design systems and processes to support the people B) Develop the talents of others C) Do things to keep business on course D) People focused

Do things to keep business on course

What is the key factor that has driven real estate companies to ask, "What is our role?" A) More demands by Asians and Hispanics B) Investigations by the Department of Justice C) Evolving role of the internet D) Aging population

Evolving role of the internet

A manager has been applying constructive steps to change unacceptable behavior in the office. What is the last step the manager should do to complete the process? A) Follow up to ensure the behavior changes. B) Clearly describe to the offender the behavior that is unacceptable and the reasons why. C) Develop an action plan. D) Decide whether the unacceptable behavior deserves attention.

Follow up to ensure the behavior changes.

Why might a real estate company move away from using independent contractors for sales and hire employees instead? A) Lower costs B) Greater control over sales activities C) Higher flexibility during real estate cycles D) Eased licensing requirements

Greater control over sales activities

Which parts of the American population are growing at three times the rate of the overall population? A) European and African American B) Asian and European C) African American and Hispanic D) Hispanic and Asian

Hispanic and Asian

Which parts of the American population are growing at three times the rate of the overall population? A) Hispanic and Asian B) European and African American C) Asian and European D) African American and Hispanic

Hispanic and Asian

A real estate salesperson is being offered a promotion to sales manager by the owner of a real estate office. Before accepting the promotion what is the LEAST important question the salesperson should consider? A) Is the salesperson suited for the job? B) How much more money will the salesperson be making? C) How does the salesperson's strengths align with the job they will be doing? D) How will the salesperson make the transition from salesperson to sales manager?

How much more money will the salesperson be making?

How are codes for ethical and moral behavior developed? A) Established by company policies and procedures B) Developed by hit or miss decisions C) Determined by state and federal law D) Influenced by family, culture, religion, and society

Influenced by family, culture, religion, and society

What is the advantage of hiring sales agents as employees as opposed to hiring them as independent contractors? A) More people can be hired, thus increasing sales. B) The senior management team will have less supervisory responsibilities. C) Management has more control over sales activities. D) Employees cost less.

Management has more control over sales activities.

How do MOST people respond to the character of a leader? A) Will follow an unethical person as long as the leader can make money B) Must find something to love about their leader C) Need to find a correlation between their own belief systems and that of their leader D) Must have faith that their leader's decisions are always right

Need to find a correlation between their own belief systems and that of their leader

What service does the company Zillow provide? A) Online real estate listings B) Relocation services C) Online mortgage calculators D) Mortgage brokerage services

Online real estate listings

What is the conventional wisdom regarding diversity in organizations? A) Diversity in an organization results in constant turmoil among employees and management. B) Diverse viewpoints prevent innovation. C) When there is diversity in an organization, business issues do not get resolved. D) Organizations benefit from diverse ideas and opinions.

Organizations benefit from diverse ideas and opinions.

An owner of a real estate company is recognized as an established business leader in the community. What is the effect of a leader being personally involved in the community? A) Once developed, leadership should not become a way of life and efforts outside the business will not be well received by the community. B) People who are personally involved in the community guide their organizations to act in similar fashion by supporting or investing in the community. C) It is not important because the public perceives the real estate industry as a whole to be self serving. D) It has no effect because image and reputation of the company are not measured by the organization's volunteer and/or financial support of community activities.

People who are personally involved in the community guide their organizations to act in similar fashion by supporting or investing in the community.

What causes people to stop being loyal to their leader? A) People agree with leader's changed objectives. B) The leader is disliked but accomplishes required goals. C) The leader uses knowledge for truthful and honorable purposes. D) People's personal needs are no longer being met.

People's personal needs are no longer being met.

What consumer goal that impacts the real estate industry has changed as a result of the Great Recession? A) Preference for homeownership B) Expectation that their lives will be better than previous generation C) Preference for rental housing D) Low expectation for property appreciation

Preference for rental housing

When using electronic communication, which of the following is the number one rule? A) Think about legal liability B) Read before hitting send C) Respond quickly D) Avoid any information that might be considered controversial

Read before hitting send

Which of the following practices can be traced back to the early days of the organized real estate industry? A) Sharing information about properties for sale B) Petitioning local government on zoning rules C) Regulating how commissions are shared D) Standardizing fair housing practices

Sharing information about properties for sale

A real estate company decides to use the blue ocean strategy to grow the company. What will the company do to implement this strategy? A) Join a franchise or relocation network. B) Go after markets where there is strong competition. C) Simultaneously pursue differentiation and low cost to open up new market space and create new demand. D) Use higher pricing to attract better quality clients.

Simultaneously pursue differentiation and low cost to open up new market space and create new demand.

Which action is LEAST likely to deliver an effective message at a business meeting? A) Practicing in advance B) Picking the right topic C) Choosing humor wisely D) Speaking off the cuff

Speaking off the cuff

An affiliated licensee in a brokerage of 60 affiliated licensees is charged with a violation of the state's real estate license law. Who is MOST responsible for the actions of the affiliated licensee? A) The broker of the large office B) The team leader C) The client who hired the brokerage D) The unlicensed partners of the broker

The broker of the large office

Who determines what the consumer receives in a take-it-or-leave-it business model? A) The regulator B) The consumer C) General business practices D) The supplier

The supplier

The manager of a real estate office needs to be a good team builder to develop a cohesive work unit and mobilize the agents' efforts. Which of the following is the LEAST likely reason agents have for working? A) To build their résumés B) To contribute to the lives of their customers C) To satisfy the organization's goals D) To make money

To satisfy the organization's goals

Which of the following is a current trend in the real estate business? A) Increased personal interaction between the real estate professional and the consumer B) Downsizing sales forces C) Unbundling services to allow consumers to select those that they need D) Increased use of the internet

Unbundling services to allow consumers to select those that they need

What is a leader's ultimate abuse of power? A) Willingness to stand by necessary, but difficult decisions B) Use of coercion to gain compliance C) Treats individuals fairly and with dignity D) Unwillingness to compromise for personal gain

Use of coercion to gain compliance

At the end of a business's market analysis, a real estate company should be able to answer all of the following questions EXCEPT A) What is the company's geographical market? B) Where should the company recruit its sales agents? C) Does the company have a specialty or niche? D) What types of agency/services does the company offer?

Where should the company recruit its sales agents?

How can a company properly acknowledge the diversity in the workforce? A) Evaluations based on lifestyle and dress B) Expect that everyone will be friends even outside the office C) More tolerance for those who are similar to the manager's heritage D) Zero tolerance for sexual harassment

Zero tolerance for sexual harassment

Before making a decision to enter into an intercity referral network, the broker should determine A) if it is necessary to use a third-party equity contractor. B) how effective the referral program will be to develop new business from immigrants. C) whether or not the referral program will work with minorities. D) a cost-versus-benefits equation.

a cost-versus-benefits equation.

Some consumers are willing to purchase and pay only for services they want. As a result, real estate companies have A) adopted alternative pricing models. B) restricted their core services. C) bundled their services into one package. D) increased transaction-based fees.

adopted alternative pricing models.

The internet has changed the real estate industry into A) a brick-and-mortar business. B) construction venues. C) the realm of social services. D) an information business.

an information business.

Once developed, leadership becomes a way of life. Leaders are observers of the world around them, passion motivates them to take their social influence outside the organization for the benefit of an industry, and they A) are lifelong learners. B) see no value in learning new ideas. C) will only learn what they feel they need to know for their job. D) believe continuing education is not a good use their time.

are lifelong learners.

A leader who dominates in a benevolent manner, giving directions without asking for participation from the staff, and who creates a respectful environment is A) dictatorial. B) participatory. C) autocratic. D) hands-off.

autocratic

Based on developments that have already occurred in the real estate business, it is likely that business in the near future will be conducted by A) Internet companies alone. B) big, small, and internet companies. C) a small number of big companies. D) small companies.

big, small, and internet companies.

The strategy that calls for the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand is called the A) blue ocean strategy. B) niche marketing strategy. C) differentiation strategy. D) competition strategy.

blue ocean strategy.

Multiple listing services (MLSs) are becoming A) broader information systems. B) more useful to buyers than sellers. C) more regulated by the state's licensing authority. D) obsolete in today's practice.

broader information systems.

Directing the organization's financial and human resources to those selected activities that will yield the greatest return on investment is the goal of A) goal setting. B) market research. C) business planning. D) SWOT analysis.

business planning.

One of the primary advantages to consumers who use the internet for real estate information is that they A) have a better reason to upgrade their computer systems. B) can work with more than one agent at a time. C) can be more participatory in the pursuit and evaluation of information. D) do not have to work with any particular agent.

can be more participatory in the pursuit and evaluation of information.

One of the primary advantages to consumers who use the internet for real estate information is that they A) have a better reason to upgrade their computer systems. B) can work with more than one agent at a time. C) do not have to work with any particular agent. D) can be more participatory in the pursuit and evaluation of information.

can be more participatory in the pursuit and evaluation of information.

While effective business writing is used to accomplish several goals, the general goal LEAST likely met by business writing is to A) inform. B) inspire. C) motivate. D) criticize work or behavior.

criticize work or behavior.

In the history of the real estate industry, few topics have prompted as much discussion as agency relationships. This has led to major transformations in agency law in the past two decades so that today A) agency, in practice, is no longer one of the most challenging aspects of the business. B) states have clear definitions of agency terms can be easily converted into actual practice. C) consumers understand the laws of agency and different agency relationships available. D) decisions a broker makes about the company's agency policies have to be supported by procedures and training programs.

decisions a broker makes about the company's agency policies have to be supported by procedures and training programs.

All of the following are revered character traits in a leader EXCEPT A) duplicity. B) honesty. C) integrity. D) trustworthiness.

duplicity.

An announcement should not only communicate a decision but also A) focus attention on the format of the delivery. B) enhance the likelihood that it will be implemented. C) justify and defend the decision. D) encourage everyone to second-guess the decision.

enhance the likelihood that it will be implemented.

In the classic decision making process, the step that considers the pluses and minuses and the perceived acceptance of each option is called A) select an appropriate alternative. B) evaluate alternatives. C) define the situation. D) develop alternatives.

evaluate alternatives.

In the classic decision making process, the step that decides whether the decision produced the desired results is called A) select an appropriate alternative. B) evaluate alternatives. C) develop alternatives. D) evaluate the outcome.

evaluate the outcome.

If a company is reviewing its strengths as part of the SWOT approach to market analysis it is asking what A) gives it an edge on the competition? B) does the company do poorly or where is it weak? C) external factors are threats to the company? D) external factors offer opportunities?

gives it an edge on the competition?

Real estate companies are different from other business enterprises because they A) make their own products. B) have little contact with the average consumer. C) have no control over the products they sell. D) are less regulated by the government.

have no control over the products they sell.

Using a market-driven approach for a company's operations A) ignores the needs of the customers. B) helps ensure that services the consumers want are being provided. C) is an outdated business philosophy. D) is costly in relation to the benefits the company derives.

helps ensure that services the consumers want are being provided.

Using a market-driven approach for a company's operations A) ignores the needs of the customers. B) helps ensure that services the consumers want are being provided. C) is costly in relation to the benefits the company derives. D) is an outdated business philosophy.

helps ensure that services the consumers want are being provided.

The type of decisions that involve significant strategic directions, policies, or fundamental systems within the organization are called A) institutional. B) resource. C) corrective. D) mediation.

institutional

Giving a lecture to the attendees at a meeting about attendance and punctuality A) is a way to get the attention of everyone. B) is not productive to those attendees who are on time. C) can let the attendees know how the leader feels about tardiness. D) can be even more productive if the food is taken away after the meeting starts.

is not productive to those attendees who are on time.

A characteristic of a leader versus a manager is that a leader A) is controlling. B) leads by authority. C) monitors work. D) is proactive.

is proactive.

Although each type of listing agreement has advantages and disadvantages, an exclusive-right-to-sell listing is generally viewed to be preferable because A) only the broker who sells the property earns a commission. B) the seller does not have to pay a commission if a buyer's representative sells the property. C) the seller can sell the property without being obligated to pay a commission. D) it eliminates controversy about whether the listing broker is entitled to commission.

it eliminates controversy about whether the listing broker is entitled to commission.

Scrutinizing the current status of your company is MOST useful when planning its future because A) it's difficult to develop realistic plans without knowing about the company's operations. B) the competition knows more about the company than you do. C) this minimizes resentment by the salespeople. D) it will probably be necessary to restructure the organization.

it's difficult to develop realistic plans without knowing about the company's operations.

It is very natural for a manager to label a person because of a particular trait or skill. When a manager has a preconceived notion about someone, A) this helps treat the person fairly. B) it's difficult to see the person as an individual. C) this helps manage the person. D) it takes less time for the manager to evaluate what the person does.

it's difficult to see the person as an individual.

All of the following describe the differences between leaders and managers EXCEPT A) leaders take credit. B) managers use formal authority to direct work. C) leaders inspire people to work. D) managers protect the organization's hierarchy.

leaders take credit.

When writing to deliver potentially unpopular or inflammatory information choose your words carefully and A) sugar-coat the point to avoid unpleasantness. B) make your message clear and precise. C) use critical remarks to enforce your message. D) try to bury or obscure the point to avoid a negative reaction.

make your message clear and precise.

One indication of a company's success in challenging the competition is an ongoing analysis of its A) number of customer services offered. B) location. C) market share. D) affiliations.

market share.

During the expansion stage of the economic cycle, A) housing prices fall. B) there are high levels of unemployment. C) more buyers want to buy. D) there is a decrease in the number of new businesses.

more buyers want to buy.

Regarding the character of a leader, generally, people A) will follow an unethical person as long as they can make money. B) need to find a correlation between their own belief system and that of their leader. C) must have faith that their leader's decisions are always right. D) must love their leaders.

need to find a correlation between their own belief system and that of their leader.

The ultimate in specialization for a real estate brokerage is known as A) ancillary services. B) niche marketing. C) product differentiation. D) residential brokerage.

niche marketing.

A broker who does NOT represent either party in the same transaction is practicing A) dual agency. B) single agency. C) nonagency. D) designated agency.

nonagency

A broker who does NOT represent either party in the same transaction is practicing A) nonagency. B) designated agency. C) dual agency. D) single agency.

nonagency

The phase after an economic cycle has finished expansion is A) retrenchment. B) trough. C) peak. D) contraction.

peak.

During periods when the economic environment is good A) buyers purchase fewer houses and less expensive ones than they could afford. B) people lose perspective and fail to prepare for the inevitable economic change. C) real estate prices rise and remain that way even if the economy falters. D) profit motives inspire people to make logical decisions.

people lose perspective and fail to prepare for the inevitable economic change.

During periods when the economic environment is good A) profit motives inspire people to make logical decisions. B) real estate prices rise and remain that way even if the economy falters. C) buyers purchase fewer houses and less expensive ones than they could afford. D) people lose perspective and fail to prepare for the inevitable economic change.

people lose perspective and fail to prepare for the inevitable economic change.

The easy way to minimize the potential for conflict or friction on a board, committee, or other work group is to select A) a provocative thinker. B) people with similar viewpoints. C) people with a wide range of viewpoints. D) a token dissenter.

people with similar viewpoints.

People develop as leaders through observation and introspection, learning how to influence, motivate, direct, and build trust, and A) knowing themselves. B) using their title at work. C) practicing what they learn. D) using the internet to learn how to lead.

practicing what they learn.

When evaluating people's behavior, it's important for the manager to A) yell at a person so it's clear the manager is displeased about something that was done. B) praise the behavior that is desirable or acceptable. C) criticize the person who has stepped out of line. D) ignore desirable behavior because people are doing what they're supposed to.

praise the behavior that is desirable or acceptable.

One difference between a manager and a leader is that a leader A) proactively designs systems with an eye on long-term success. B) avoids any deviations from established agreed-upon formulas. C) works as a caretaker of traditional formulas to keep the organization on track. D) works well within well-defined systems.

proactively designs systems with an eye on long-term success.

An older couple decided to sell their home and move out of state to a retirement community. After careful consideration they decide to sell their home to an iBuyer online company. The couple understands that the iBuyer online company will probably A) relieve them of the hassle of house showings. B) pay them what they think their home is worth. C) not charge them selling fees. D) require them to provide financing for the purchase.

relieve them of the hassle of house showings.

Leaders can command a following when they possess the character traits of integrity, honesty, trustworthiness, loyalty, and A) compassion. B) vision. C) accountability. D) respect.

respect.

A helpful tool for evaluating your competitors is the SWOT Analysis. SWOT stands for A) strengths, weaknesses, opportunities, and threats. B) strategies, workability, opportunities, and threats. C) strategies, weaknesses, opportunities, and threats. D) strengths, weaknesses, objectivity, and talents.

strengths, weaknesses, opportunities, and threats.

A helpful tool for evaluating your competitors is the SWOT Analysis. SWOT stands for A) strengths, weaknesses, opportunities, and threats. B) strategies, workability, opportunities, and threats. C) strengths, weaknesses, objectivity, and talents. D) strategies, weaknesses, opportunities, and threats.

strengths, weaknesses, opportunities, and threats.

Serving real estate investors requires a broad base knowledge of A) current housing trends. B) tax laws and those governing exchanges. C) fair housing laws. D) cultural diversity.

tax laws and those governing exchanges.

A seller hires a broker, who has several licensed associates, to sell his house. In this transaction the broker is A) the subagent. B) the principal. C) none of these. D) the agent.

the agent.

A disadvantage of joining an intercity referral network could be A) the competitive advantage in the local market. B) the potential for increased clientele. C) the expectation of providing a myriad of nontraditional services for a corporation and its transferees. D) the benefit of name recognition.

the expectation of providing a myriad of nontraditional services for a corporation and its transferees.

Companies, including real estate offices, often suffer from an "age divide," which refers to A) the gap between the older entrenched senior management and lower-level younger people. B) traditional 35-year "gold watch" retirements. C) the gap between the youthful senior management and older sales staff. D) the melting pot of cultures and generations.

the gap between the older entrenched senior management and lower-level younger people.

A slightly daring approach to managing a diverse workforce is to select a token dissenter. The token strategy can backfire if A) the group leader gives the dissenting voice an opportunity to be heard. B) it is respected as a constructive devil's advocate. C) the token dissenter is respected as a provocative thinker. D) the single dissenting voice gets isolated from or tuned out by the rest of the group.

the single dissenting voice gets isolated from or tuned out by the rest of the group.

Real estate companies that have expanded the meaning of core services may now assist consumers in all of the following EXCEPT A) verifying the accuracy of seller property disclosures. B) day care for a child or elderly parent. C) handyman services. D) job placement for a spouse.

verifying the accuracy of seller property disclosures.

If using the SWOT approach for market analysis and a company determines it has a poor track record in commercial sales, has no training system in place for new agents, and lacks cash reserves, it is analyzing its A) opportunities. B) weaknesses. C) threats. D) strengths.

weaknesses.

In today's real estate offices, managers are very likely supervising individuals A) whose profiles are significantly different from the managers'. B) who are very similar to the owner of the company. C) with backgrounds very similar to that of the manager. D) with very homogenous backgrounds.

whose profiles are significantly different from the managers'.

If a company is reviewing its weaknesses as part of the SWOT approach to market analysis it is asking A) what does the company do exceptionally well? B) why does the competition have an edge on the company? C) what external factors offer opportunities? D) what external factors are threats to the company?

why does the competition have an edge on the company?

For effective business writing, real estate licensees should consider that A) it is no longer necessary to rewrite. B) writing has to capture the eye or make a visual impression to capture the mind. C) written words are only temporary and do not become a liability for the company. D) grammar, punctuation, and spelling no longer matter.

writing has to capture the eye or make a visual impression to capture the mind.