Real Estate Brokerage CE Test #1

Broker Merry is conducting an exit interview of licensee Kate, who has resigned. Which of the following questions would be appropriate for an exit interview? "How often did you think about leaving before you actually found a new broker?" "What could you have done better to improve our professional relationship?" "What did you enjoy about working here?" "Why did you take advantage of the training we gave you if you're just going to use it at another brokerage?"

"What did you enjoy about working here?"

In certain cases, antitrust violators may be subject to court-ordered supervision. How long can this supervision last? 10 years One month One week One year

10 years

Which of the following is often evaluated in order to determine the purchasing power of consumers who live in an area? Census data Median income Property appraisals Property taxes

Median income

Which option is of the most concern to licensees and advertising when it comes to the Federal Trade Commission? Excessive advertising costs Location of ads Misleading ads Paper waste

Misleading ads

Edgar and his management staff identified their work with contracts as a potential risk to the firm. If Edgar uses only pre-printed forms from his regulatory agency and trains licensees on how to complete the forms, which risk-handling strategy is he using? Acceptance Avoidance Mitigation Transfer

Mitigation

A broker can help licensees be productive by ______. Giving them a schedule and set of tasks they're required to follow Letting them make their own mistakes Modeling habits and behaviors that create success Telling them to "fake it until they make it"

Modeling habits and behaviors that create success

What feature of a computer system enables teleconferencing? Cloud storage Databases Networking Security measures

Networking

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. Cost-based Efficiency Entitlement Performance

Performance

What is the most fundamental management activity? Accounting Investment Planning Training

Planning

Which of the following is a characteristic of a properly written job description? Describes responsibilities in terms of tasks to complete Describes tasks without accountability standards Provides a basis for performance assessment Provides a high-level overview of activities

Provides a basis for performance assessment

What's one plausible way to manage risk in your real estate business? Assume you won't make any mistakes. Host daily trainings for staff and licensees and quiz them to make sure they understand. Prepare for every possible disaster. Purchase errors and omissions insurance.

Purchase errors and omissions insurance.

Which office area's purpose is to promote the brokerage's image to the public? Conference room Reception Restroom Training room

Reception

What is the key to effectively managing expenses and cash flow? Monitoring the monthly checking account balance Preparing annual financial statements Reviewing, planning, and forecasting proactively Reviewing your business plan annually

Reviewing, planning, and forecasting proactively

No matter what budget is in use, consistent or dramatic variations from budgeted amounts ______. Are of no consequence as long as there isn't a cash shortage Become the source of next year's financial forecast Should be reviewed so the budget can be adjusted to match actual numbers Should be reviewed to find the cause, and spending should be adjusted if necessary

Should be reviewed to find the cause, and spending should be adjusted if necessary

Which of the following is a characteristic of an informal organization? Official Rigid Social Unambiguous

Social

In what worker classification are real estate agents placed as long as they meet the three requirements stipulated by the IRS? Common law employees Independent contractors Statutory employees Statutory non-employees

Statutory non-employees

When implementing a code of ethics into a brokerage, it's likely to be more effective if ______. The brokerage provides monetary reinforcement for abiding by the code The code is enforced through consequences The code is memorized The code is posted on the brokerage's website

The code is enforced through consequences

Which of the following is one of a firm's best defenses against damage to its image? Avoiding social media Hire a public relations consultant Limiting activities that incur risk The policies and procedures manual

The policies and procedures manual

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 The time it takes the process to be completed The time used to determine which offering to select Time over which the offering will be used

The time and effort put into the shopping process

What's the minimum number of business days prior to closing that lenders have to provide borrowers with the Closing Disclosure form? Five Four Three Two

Three

When should a marketing plan be developed for your brokerage? After creating an advertising campaign After determining the overall direction of the firm Prior to creating a business plan Prior to creating a mission statement

After determining the overall direction of the firm

______ must abide by the Canons of Professional Ethics and Conduct, enforced by the Texas Real Estate Commission. All citizens of Texas All Texas real estate licensees Licensees who are members of REALTOR® associations Sales agents

All Texas real estate licensees

Danny is willing to take on some risk with his new brokerage, but he wants the support and brand recognition of an established company. Why type of brokerage is Danny considering? He acquired a brokerage. He merged business names with an existing brokerage. He purchased a franchise. He started his own brokerage.

He purchased a franchise.

Andy is the owner of his own real estate brokerage firm. What is one of the rewards of being a broker-owner? He gets to make sure that his licensees maintain their licensure. He must make sure the firm makes money. He receives a percentage of his licensees' commissions. He's liable for licensees' actions.

He receives a percentage of his licensees' commissions.

What's one advantage an MLS system provides, especially to a small brokerage? A graduated fee structure based on firm size A portal for sellers to enter their own listings Free advertising Listing exposure and access

Listing exposure and access

Samantha is the owner of her own real estate brokerage firm. Which of the following is one of her responsibilities as broker-owner? Collecting fines from her licensees who violate license laws or regulations Encouraging brokers who work for her to start their own firms Explaining the agency relationship to her licensees' clients Making sure her licensees maintain their licensure

Making sure her licensees maintain their licensure

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

Line

What would be a business weakness according to a SWOT analysis? A deficiency of skills or traits needed to achieve a business goal An external factor that could be exploited for business gain An external factor that could restrict or inhibit business A skill or trait that is aligned with a business's goals

A deficiency of skills or traits needed to achieve a business goal

Which of the following would constitute a violation of fair housing laws? An owner placed an ad for a home stating that it includes a mother-in-law apartment. A property manager tells a prospective male tenant that there's a basketball court located in the apartment complex. A property owner tells an Asian family there are no apartments available to rent when there are several; the property owner doesn't like the way Asian cuisine smells when it's being cooked, so he doesn't want any Asian tenants. A white family and a Cuban family are both interested in the same rental house. The house is rented to the white family because that family inquired first.

A property owner tells an Asian family there are no apartments available to rent when there are several; the property owner doesn't like the way Asian cuisine smells when it's being cooked, so he doesn't want any Asian tenants.

Which of these economic growth policies is most likely to benefit a real estate business? A plan to construct a freeway overpass through a residential neighborhood A revitalization plan that subsidizes conversion of warehouses along the river into condominiums A tax on small businesses to cover the rising cost of health insurance for employees Zoning ordinances that prohibit new buildings in a historic downtown district

A revitalization plan that subsidizes conversion of warehouses along the river into condominiums

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. Draft an amendment using whatever language is needed to capture the missing terms. Hire an attorney and invoice the client. Terminate the contract on the client's behalf.

Add a standard addendum using standard language.

Kirby is a broker for Magic Carpet Realty. However, his reputation flew out the window when a competitor exposed his underhanded tactics in a local newspaper article. What should Kirby do? Apologize in a letter to the local newspaper and attempt to make amends. Cancel his newspaper subscription. Take out an ad in the same publication exposing the shenanigans of his competitor. Write a letter to the editor threatening to sue.

Apologize in a letter to the local newspaper and attempt to make amends.

The economic, regulatory, and ______ environment all need to be considered when conducting a thorough market analysis. Business CCP MARTS Societal

Business

Mark is the listing agent for a home owned by the Browns. At the open house, a colleague, Brandon, indicates that he has a buyer for the Browns' home. Mark has had numerous interactions with Brandon on other listings, and found that they don't get along. He really doesn't want to work with him on this deal. In order to behave ethically, what can Mark do? Cooperate with Brandon because it's in the best interest of his clients. Inform the buyers that they will probably not be happy with Brandon. Persuade the buyers to break their contract with Brandon. Refuse to work or cooperate with Brandon.

Cooperate with Brandon because it's in the best interest of his clients.

Up the Hill Realty has purchased a contact list. New licensees at the brokerage are asked to spend three hours a week cold-calling individuals on this list. Which of these actions is NOT one they need to take before making these calls? Be sure that it's after 8 a.m. and before 9 p.m. Check the Do Not Call Registry. Check to see if listed individuals are recent clients of the firm. Create a fake phone number that individuals will see on their caller ID.

Create a fake phone number that individuals will see on their caller ID.

The firm's target market information in the marketing plan includes which of the following? Average time on market Demographics Interest rate trends Inventory of homes

Demographics

On a cash flow statement, the beginning cash for a given month is the _____. Beginning cash from the previous month Ending cash from the previous month Gross profit for the month Net profit for the month

Ending cash from the previous month

During mediation, a mediator should act as a ______. Decider Facilitator Judge Jury

Facilitator

Which of the following is essential software for most brokerages? Desktop publishing Financial management software Image editing Servers

Financial management software

Penalties for antitrust violation may include ______. Additional education requirements Community service Fines and/or prison sentences Fines only

Fines and/or prison sentences

A mission statement outlines what your business looks like today. What's the term for the thing that describes what you want the future to look like? Goals statement Objectives calendar Purpose statement Vision statement

Vision statement

Charli is thinking about buying only liability insurance for the office building she owns. She knows she'll have to pay for any damage to the building. What factors should Charli consider in making this decision? Her willingness and ability to withstand the risk posed by carrying only liability insurance (risk tolerance) Loss of her license if damage to the building interferes with client services The potential damage to her relationship with her insurance agent The state's regulatory agency requirement that she carry both liability and property damage coverage

Her willingness and ability to withstand the risk posed by carrying only liability insurance (risk tolerance)

Behavioral interview questions ask candidates to describe ______. How they would react to an example situation that may come up in the position Their experience and qualifications Their relevant education, licensure, and certifications What they want in an employer or supervising broker

How they would react to an example situation that may come up in the position

How are cultural fit and business value related when considering a merger or acquisition? Employees from different cultures may need different holidays off, which can increase staffing costs and reduce business value. Employees from diverse cultures increase business value because of the tax benefits of hiring minorities. If the cultural fit is wrong, key players may leave, reducing the value of a company's human resources and increasing recruiting costs. If the cultural fit is wrong, litigation over fair housing violations and equal employment opportunity increase, which increases legal costs and reduces business value.

If the cultural fit is wrong, key players may leave, reducing the value of a company's human resources and increasing recruiting costs.

Which of the following is a contract that exists based on an understanding or assumption, rather than on specifically defined terms? Express contract Implied contract Invalid contract Unilateral contract

Implied contract

Business at Vista Brokerage is slow so you've initiated a new marketing campaign to pull in more clients. What impact should you expect from your marketing efforts? Direct Extreme Indirect Minor

Indirect

Industry regulations, such as RESPA, can affect your business by _______. Directly affecting your ability to conduct business in a reasonable and professional manner Directly impacting how a property may be used Indirectly affecting real estate and limiting how you may conduct business Indirectly devaluing property

Indirectly affecting real estate and limiting how you may conduct business

When should your firm perform the risk identification process? Initially when writing the risk management plan and as needed thereafter On a five-year cycle when updating the strategic plan Once, when writing the risk management plan Quarterly when updating the financial statements

Initially when writing the risk management plan and as needed thereafter

Which option best describes what an environmental impact statement is? It defines the level of drilling that needs to take place in order to build foundations for the development. It describes and analyzes a proposed action that may have a significant effect on the environment. It describes local zoning regulations like setbacks, zones, and curb requirements. It illustrates the benefits of the development to the community to improve community acceptance.

It describes and analyzes a proposed action that may have a significant effect on the environment.

How does data encryption protect your and your clients' personal information? It allows regular updates to processes without your approval. It ensures that you do not access unsecure sites. It prevents hackers from accessing your computer. It turns information into indecipherable code.

It turns information into indecipherable code.

Which statement best represents the baby boomer generation? Heavily connected to the Internet since birth Known as the social media generation and well connected to the Internet, and are looking for apartments Large generation demographic that is also retired or retiring and looking to age in place or downsize their housing More culturally diverse than other generations and are the smallest of the current generational demographics

Large generation demographic that is also retired or retiring and looking to age in place or downsize their housing

Landon is the listing agent for Maury's property. Maury is moving out of state for a new job, so the house will be vacant for some time, depending on how long it takes to sell. Maury is pretty adamant about not having a sign in his yard, especially after he moves. Landon follows Maury's wishes, but a month after Maury moved, there hasn't been any movement on the property. Landon places a sign in the yard, hoping it will drum up some interest. Is this okay? No, Landon shouldn't place a sign on Maury's property without Maury's written permission. No, Maury's neighbors might tattle. Yes, as the listing agent, Landon has the right to place a sign on the properties he has listed. Yes, since Maury has moved, Landon can make decisions related to the property.

No, Landon shouldn't place a sign on Maury's property without Maury's written permission.

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? Climb on the roof and perform an inspection. Hire a home inspector to physically inspect the property. Suggest that her client contact a roofing expert to make a determination. Tell her client that the spots indicate a roof leak.

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

How is inorganic growth achieved? By adding similar services to those already offered By incorporating industrial sales into a business model By naturally expanding geographically throughout the market area Through the acquisition or merger of another company

Through the acquisition or merger of another company

When working with a developer who's purchasing undeveloped land for a new subdivision, ABC Realty stipulates in the contract that in order to purchase the undeveloped land, the developer must purchase grading services from Bulldozers-R-Us. Which antitrust violation is this? Group boycotting Market allocation Price fixing Tie-in arrangement

Tie-in arrangement

Ralph's income statement for his firm showed a nice profit for the quarter. How can Ralph best use this information? To apply for a loan To compare to other quarters To determine his spending rate To forecast next quarter's profits

To compare to other quarters

A person who facilitates the paperwork, but doesn't actually represent either party to the transaction, may be a ______. Designated agent Dual agent Sub-agent Transactional broker

Transactional broker

An associate broker received an earnest money check from his buyer. Which of the following actions is appropriate and complies with real estate license law? Deposit the check into his personal account. Keep the earnest money check at home for safekeeping. Store the check in the buyer client's file in his car. Turn the check over to his broker for deposit into the firm's escrow account.

Turn the check over to his broker for deposit into the firm's escrow account.

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? Cost/benefit ratio Creating Delivering Value

Value

James is placing a listing ad for a soon-to-be-built expensive home in a gated community. He includes the words "exclusive" and "ultra-conservative community" in his ad. Is James in danger of violating fair housing law? No, as long as the developers have used the same terms to describe the development. No, because the terms are a true characterization of the neighborhood and the property Yes, because it implies that the listing is suitable only for a particular type of buyer. Yes, unless the developers specified that he use these terms in all marketing tools.

Yes, because it implies that the listing is suitable only for a particular type of buyer.