Brokerage Qs

A broker's expectation that helping each licensee grow as a real estate professional will add to the brokerage's bottom line is exhibiting a ______ philosophy.

Development

James is applying for a loan for his firm and is preparing a financing portfolio. What information should he include?

His resume

What type of business growth involves gradual adoption of new related services and increases in market share?

Horizontal, organic (Organic growth is the continuing growth of a business through the gradual adoption of new services and increases in market share)

The three primary methods for system maintenance are automatic updates, utility programs, and ______.

IT staff

Your Monday is off to a rough start. One of your licensees tells you that Joss, a new licensee, has divulged confidential information about his client on his personal Facebook page. What should you do first?

Identify

What business affiliation is used as part of an operational strategy in which broker participants cooperatively share listing data and offer consumer access to databases?

MLS

Essential software for a brokerage includes which of the following?

Sales management program

How is a brokerage checklist commonly used? a. It lists what's not allowed in E&O insurance b. It provides guidance about what can and cannot be in a policy c. It provides steps that both new and experienced agents can follow d. It provides the "who, how, and when" something is done to implement a policy

c. It provides steps that both new and experienced agents can follow

The cash flow statement most closely resembles the ______. a. Balance sheet b. Checking account c. Income statement d. Statement of operations

c. Income statement

What is the benefit to a brokerage of establishing a long-range plan? a. Assist with financing for the brokerage. b. Assist with payroll. c. Keep the organization on course. d. Meet technology goals.

c. Keep the organization on course.

What do marketers consider to be your firm's signature?

Your logo

Your brand statement, identity, and logo are ______.

Marketing tools

Broker Jamaal advertises for licensees on his brokerage's website. This type of recruiting can attract ______.

Both new and experienced licensees

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

CCI

Which one of the following is an activity that should be conducted during a new worker orientation to help new people feel confident and excited about their decision to join the brokerage?

Describe the firm's history and its mission and values

The Canons of Professional Ethics and Conduct are divided into five sections: fidelity, integrity, competency, consumer information, and ______.

Discriminatory practices

Busy Brokerage maintains a large sales force. Even though new licensees take more time for managers to train and supervise, the broker likes to use them more than experienced licensees because they are _________.

Easy to recruit

Which generation is known as the social media generation?

Millennials

The concept of _______ introduces new business opportunities to individuals who want to explore places with unique characteristics.

Mobility

When an amount budgeted for a specific line item has been overspent, what has occurred?

Overrun

What number is most often used to evaluate how much a business is worth?

Return on investment

Which one of these examples creates vicarious liability for the brokerage?

The brokerage's licensee neglects to provide required disclosures to a client.

What does the consumer price index measure?

The cost of living for, or inflation of, consumer goods

Which of the following actions can licensees take related to signs?

They can place signs on an owner's property with the owner's written consent.

Hank leases 150 acres from Sara and Jesse. He has an option contract attached to his lease, with an option to purchase that can be exercised within the next two years. What type of contract is this? a. Bilateral b. Executed c. Unilateral d. Voidable

Unilateral

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

Select the risk that is more industry-specific rather than general in nature. a. Embezzlement b. Liability for injury incurred by clients c. Vehicular accidents d. Violation of fiduciary duties

Violation of fiduciary duties

Edgar and his management staff identified their work with real estate contracts as a potential risk to the firm. His firm uses only contract forms approved by the regulatory agency, and his licensees just fill in the blanks. He is transferring some of his risk through his errors and omissions insurance but has decided that he doesn't need to take any other steps. What other risk management strategy is he using? a. Acceptance b. Avoidance c. Mitigation d. Transfer

a. Acceptance

Which of the following types of fraud is more common to the real estate industry than to other industries? a. Accounting fraud b. Advance fee schemes c. Mortgage fraud d. Pyramid schemes

a. Accounting fraud

It's October, and actual revenue for the year exceeds budgeted revenue by 32%. What should you do? a. Add at least a portion of the excess to your reserve account or pay off some loan principal. b. Adjust the budget so you can spend the additional funds before year's end. c. Adjust your forecasted figures from the previous year so they match the new revenue figure. d. Make a note to adjust next year's budget to reflect this additional revenue.

a. Add at least a portion of the excess to your reserve account or pay off some loan principal.

Which one of the following options describes a good way to recruit both new and experienced licensees? a. Advertise on your website. b. Ask your current licensees to act as ambassadors to their colleagues. c. Get to know local real estate school instructors. d. Talk to non-licensees about a career in real estate.

a. Advertise on your website.

A brokerage has three employees: two part-time clerical workers and one full-time transaction coordinator. Which of these positions is covered by the minimum wage standards set by the Fair Labor Standards Act? a. All three employees b. None of them; the brokerage is exempt from FLSA requirements because of its size c. The full-time worker d. The two part-time workers

a. All three employees

When is an agency disclosure form required? a. Any time real estate matters are discussed between an agent and a consumer b. As a matter of practice when obligating a consumer to a contract c. Prior to entering an agency agreement d. Whenever there is a material defect with the property

a. Any time real estate matters are discussed between an agent and a consumer

The legal concept of parens patriae gives which state position the authority to sue on behalf of citizens? a. Attorney general b. Chief justice c. Comptroller d. Governor

a. Attorney general

A supervising broker's training plan for a newly licensed associate should focus on which one of these areas? a. Business development b. Correcting common transaction mistakes c. Licensing laws d. Specialty areas

a. Business development

There are several things that a business planning document should include. For one, it should describe what your business does, its position in the marketplace, what distinguishes it from competitors, and the markets it serves. Which of the following standard sections of a planning document includes this information? a. Company description b. Description of services c. Financial plan d. Market analysis

a. Company description

A complaint was filed against Acme Realty and Widget Realty for price fixing. The Federal Trade Commission has just issued a(n) ______ to get them to stop this antitrust activity. If that doesn't work, the FTC will take further action. a. Consent order b. Fine c. Injunction d. Moratorium

a. Consent order

Rita, the owner of Advantage Realty, wants her brokerage to give clients an impression of a boutique agency where salespeople work as a smoothly functioning unit to achieve clients' goals. What is her best strategy for achieving this? a. Maintain a small staff of carefully chosen licensees who can work together successfully. b. Select only experienced licensees to work at the brokerage and assign them to specific clients. c. Select only new licensees to work at the brokerage, but use several of them to achieve revenue goals. d. Sponsor a large group of licensees who work as employees, not independent contractors.

a. Maintain a small staff of carefully chosen licensees who can work together successfully.

Which professional association has as its mission to "advance sustainable Hispanic home ownership"? a. NAHREP b. NAR

a. NAHREP

Principal broker Winona has office hours on Tuesdays and Thursdays when she's available by phone to answer questions from agents or staff. She has a monthly 1-hour virtual meeting to recognize top agents for the month. At all other times, she directs her office manager, who doesn't have a real estate license, to respond to any questions which arise. If the office manager doesn't know the answer, she emails Winona for the answer. Is Winona meeting the requirements for direct supervision? a. No, because she's required to always be physically present in the office when it's open for business. b. No, because she's required to conduct meetings more frequently than she presently does. c. Yes, because she has delegated responsibility to the office manager when she's not physically present in the office. d. Yes, because she has office hours and meetings and is accessible during those times.

a. No, because she's required to always be physically present in the office when it's open for business.

All of the following are components of a compensation plan except for which one? a. Payroll taxes b. Perks c. Salary d. Wages

a. Payroll taxes

Which one of the following factors is most important for a brokerage firm to consider when deciding the best number of licensees to maintain on the sales staff? a. The amount of market share the brokerage wants to control b. The amount of office space and office equipment available c. The firm's willingness to recruit d. The price range of listings that the brokerage usually handles

a. The amount of market share the brokerage wants to control

You're representing a client in the purchase of a house. This client has a trust fund and can easily afford the house on which she's made an offer. Which of the following statements is true? a. Your duty of confidentiality to your client dictates that you not disclose her financial situation to the seller. b. Your duty of disclosure to customers and third parties requires that you disclose your client's financial status to the seller. c. Your duty of honesty and fairness to customers dictates that you must share with the seller your client's ability to pay more for the property than she offered. d. Your duty of working in your client's best interests means you should be showing her properties that are in a higher price range since she can afford it.

a. Your duty of confidentiality to your client dictates that you not disclose her financial situation to the seller.

Which of the following would be an appropriate marketing department goal statement? a. Become the best residential sales firm in the city. b. Become the top annual sales producer in our firm's region. c. Increase our market share and reduce days on market. d. Stay within our marketing budget.

b. Become the top annual sales producer in our firm's region.

Who's most protected when a firm maintains good recordkeeping practices? a. Clients b. Clients and all licensees c. Listing agents d. The supervising broker

b. Clients and all licensees

When deciding on a physical office for your brokerage, which of the following can help you determine what type of name recognition other brokerages in the area have? a. Business directories b. Competitive analysis c. Executive summary d. Traffic patterns

b. Competitive analysis

A medium-sized brokerage asks anyone from its staff to participate in certain business planning activities at the company. Which of these is the most likely potential drawback of using such a strategy? a. Clients may discover that the executives at the brokerage are letting workers make business decisions. b. Confidential company information must be shared with workers outside the executive level. c. Workers may learn more about how the brokerage works and leave to start their own businesses. d. Workers may request higher compensation in return for their input on business matters.

b. Confidential company information must be shared with workers outside the executive level.

Tim is thinking of opening his office down the same street as one of his competitors who has a lot of name recognition. As a newcomer on the scene, what will be Tim's top consideration if he decides to be so close to this highly visible competitor? a. How important walk-in business is b. How much promotional marketing is required c. The cost of rent and utilities compared to other locations d. What traffic patterns best serve the target market

b. How much promotional marketing is required

The compensation plan at Ginny'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? a. External equity b. Internal equity c. Pay leveling d. Rational adjustment

b. Internal equity

Cultural diversity in a brokerage ______. a. Is best left to larger firms b. Is generally beneficial c. Is problematic d. Shouldn't be tolerated

b. Is generally beneficial

Which of these is an advantage of external recruiting for management positions? a. External candidates aren't familiar with existing culture and operations. b. It avoids the distraction of individuals within the firm competing for the same position. c. It shortens training time. d. It's less expensive than promoting from within.

b. It avoids the distraction of individuals within the firm competing for the same position.

Why is the Consumer Price Index (CPI) important? a. It's a measure of the public's confidence. b. It's the best general indicator of inflation. c. It's used by the Federal Reserve to adjust monetary policies. d. It tracks growth or lack of growth of personal consumption.

b. It's the best general indicator of inflation.

Samantha is a numbers person, and she's determined that for every 100 sales contracts her licensees write, 12% will have some sort of error. Relating this to risk analysis, what does this number represent? a. Category of risk b. Likelihood of occurrence c. Risk exposure d. Severity of impact

b. Likelihood of occurrence

Which of the following statements is true regarding developers who plan to allow FHA financing in their subdivisions? a. They can only sell to buyers who have FHA loans. b. They must follow the FHA's minimum building standards. c. They must obtain financing for their subdivision development from the FHA. d. They must provide affordable housing in the subdivision.

b. They must follow the FHA's minimum building standards.

You'll have various levels of business planning. When you get started, though, your focus should be on ______. a. How quickly you can be up and running b. Your business's long-range plan c. Your end goal d. Your objectives

b. Your business's long-range plan

Which of the following is an example of what would be included in a mission statement? a. "We intend to become the top choice for relocation services in the area." b. "We'll do what it takes to be known as the best brokerage in town." c. "We treat our customers with respect, honesty, and integrity." d. "We want to be number one in condominium sales."

c. "We treat our customers with respect, honesty, and integrity."

Which of the following contrasts between void and voidable contracts is true? a. A voidable contract can only be enforced if all parties agree to be bound by its terms. A void contract can be enforced if only some of the parties agree to be bound by its terms. b. A voidable contract is unenforceable because it requires an impossible or illegal act. A void contract may be enforced, but may also be cancelled without binding any party to act because it doesn't fit the definition of a valid contract. c. A void contract is unenforceable because it requires an impossible or illegal act. A voidable contract may be enforced, but may also be cancelled without binding any party to act because it doesn't fit the definition of a valid contract. d. If all parties agree to be bound by the terms of a void contract, it can be enforced. A voidable contract can be enforced if only some of the parties agree to be bound by its terms.

c. A void contract is unenforceable because it requires an impossible or illegal act. A voidable contract may be enforced, but may also be cancelled without binding any party to act because it doesn't fit the definition of a valid contract.

What is agency coupled with interest? a. A listing agent agrees to accept a commission of 3% after the property sells. b. A listing agent agrees to split the commission on the sale of a property with a cooperating agent. c. An agent holds an estate (or interest) in a property that is the subject of the agency relationship. d. An agent is interested in one of the agent's own listings.

c. An agent holds an estate (or interest) in a property that is the subject of the agency relationship.

Which of the following could be an example of your identity? a. "ABC Realty is my favorite real estate company," says Ron. b. A feeling that many of your customers have about your business. c. An office space that is sleek, modern, and efficient d. "We're here when you need us."

c. An office space that is sleek, modern, and efficient (If your brand statement is "the real estate firm of tomorrow," your identity is the visual representation of that concept.)

Which of the following statements about buyer representation is true? a. An exclusive agency relationship offers the buyer the highest level of representation, but restricts the buyer's right to self-represent. b. An exclusive right-to-represent relationship offers a buyer the lowest level of representation, and affords the buyer the greatest amount of autonomy. c. An open agency relationship gives the buyer flexibility, but limits the amount of representation received from any one professional. d. Open agency, exclusive agency, and exclusive right to represent all support a buyer's right to self-represent.

c. An open agency relationship gives the buyer flexibility, but limits the amount of representation received from any one professional.

A small brokerage isn't required to comply with anti-discrimination laws enforced by the Equal Employment Opportunity Commission, but it still has strict policies in its brokerage manual regarding discriminatory behavior at the brokerage. Why? a. Because HUD enforces anti-discrimination regulations covering the activities of anyone involved in the purchase of a home, including real estate agents and mortgage brokers b. Because it's something that clients expect from a trusted brokerage c. Because other state and federal laws, beyond those enforced by the EEOC, can put the brokerage in legal trouble if discrimination occurs there d. Because the Fair Housing Act includes a stipulation that agents of a broker must treat all other agents, including those at the same brokerage, without discrimination

c. Because other state and federal laws, beyond those enforced by the EEOC, can put the brokerage in legal trouble if discrimination occurs there (State employment laws may be stricter than federal laws.)

Which of the following individuals would be a competent party to a contract? a. Byron, a 17-year-old MENSA member b. Claudia, a 37-year-old in-patient receiving treatment for schizophrenia c. Graciella, a 28-year-old unemployed parolee d. Norman, a 40-year-old heroin addict

c. Graciella, a 28-year-old unemployed parolee (Individuals are considered competent parties if they have reached the age of majority (not a minor) and are of sound mind)

Milly has been coaching Laura, one of her licensees, to help her achieve her individual professional goals. Over the past month, Milly has noticed Laura struggling to accomplish the action steps she's outlined in her development plan. Milly decides to ______ as part of the coaching process. a. Give Laura a new development plan with more achievable action steps so Laura can experience success b. Give Laura a stern talking-to about self-discipline and perseverance to help Laura get back on track c. Have a talk with Laura to give her some direction and perspective so Laura can get back on track d. Let Laura make her own mistakes, even though it's clear to Milly what she's doing wrong at this point

c. Have a talk with Laura to give her some direction and perspective so Laura can get back on track

When determining the best candidate, a broker should keep in mind ______. a. Current ethnic makeup of brokerage b. How that candidate handled a high-pressure interview c. How the candidates qualifications align with business needs d. Whether the personality meshes well with the broker

c. How the candidates qualifications align with business needs

You're preparing a disaster recovery action plan. Which of the following should be included? a. Copies of insurance policies b. Financial records, including supporting documents c. Location of an off-site recovery site d. Transaction files

c. Location of an off-site recovery site

What type of analysis can determine what traffic patterns will best serve the target market? a. Customer service analysis b. Financial analysis c. Market analysis d. Workflow analysis

c. Market analysis

A broker needs to train his licensees on properly following disclosure requirements. Which of the following strategies will help his training initiative be most effective? a. Create a document listing the disclosure rules and require all associates to sign an acknowledgment of receipt b. Have all associates take a multiple choice exam at the end of the training c. Offer multiple classes so that new licensees are trained separately from experienced salespeople d. Use a "scared straight" approach by asking licensees who have been disciplined for disclosure errors to speak at the training

c. Offer multiple classes so that new licensees are trained separately from experienced salespeople

Bruce works with licensee Diana. He helps her with tasks such as placing advertisements and completing paperwork for listings, but he's not allowed to perform any tasks requiring a real estate license. In which staffing category does his position fall? a. Clerical/administrative b. Manager c. Personal assistant d. Sales associate

c. Personal assistant

A ______ is a budget prepared by a department that's been given the responsibility of generating enough income to cover an allocated portion of the firm's budget and make a profit. a. General operating budget b. Monthly operating budget c. Profit center budget d. Variable expense budget

c. Profit center budget

What action does RESPA prevent brokers from performing? a. Making more than five sales per quarter in a given neighborhood b. Preparing a market analysis c. Providing kickbacks to settlement providers d. Releasing confidential client information to the public

c. Providing kickbacks to settlement providers

Which of the following is a true statement about a brokerage's building safety? a. A broker should not get involved in security measures, to minimize litigation potential. b. Occupant health is less of a consideration than security. c. Tall hedges near the entrance pose a problem. d. Thick doors are a fire hazard.

c. Tall hedges near the entrance pose a problem.

Which of the following agencies dictates records retention requirements? a. Local association of REALTORS® b. NAR® c. The IRS d. Your local MLS

c. The IRS

Which of the following statements regarding the Occupational Safety and Health Act is true? a. For purposes of the Occupational Safety and Health Act, all of a brokerage's workers—both employees and independent contractors—are considered employees and are covered under this act. b. Regardless of whether a brokerage's affiliated salespeople are independent contractors or employees, they're covered under the Occupational Safety and Health Act, as long as there are at least 20 affiliated salespeople at the brokerage. c. The Occupational Safety and Health Act doesn't cover independent contractors; it only covers a business's employees. d. The Occupational Safety and Health Act only applies to businesses that deal with hazardous materials/waste.

c. The Occupational Safety and Health Act doesn't cover independent contractors; it only covers a business's employees.

Which of the following is one of the key decisions a brokerage makes when deciding how to staff the sales force? a. How to structure the compensation package b. The best recruiting strategy to use c. The number of licensees to use d. Whether or not to offer a signing bonus

c. The number of licensees to use

Which of the following is true regarding a standardized set of policies and procedures? a. They don't assist in overall risk management, but they do play a role in human resources management. b. They often cause confusion. c. They're a primary tool in risk management. d. They're one of the risks associated with broker liability.

c. They're a primary tool in risk management.

Which of the following describes phishing? a. A caller will pretend to be a technical support person and ask for remote control of the call recipient's computer to fix an alleged virus. b. Scammers pretend to be someone involved in a transaction, and tell buyers that there's a change to the wiring instructions. c. When a computer user clicks on an email link, the spammer gains access to the computer and data. d. When a victim clicks on a link, ad, or attachment, a bot encrypts the victim's data, which is then held for ransom.

c. When a computer user clicks on an email link, the spammer gains access to the computer and data.

Which of these statements is true regarding legal recourse for independent contractors who experience discrimination from their brokers? a. If the broker has more than 15 licensees working as independent contractors, federal discrimination laws enforced by the EEOC are applicable to those licensees. b. Independent contractors are considered employees for the purposes of most federal labor and employment laws. c. Independent contractors are not protected against discrimination under federal law. d. Independent contractors are protected by federal law against discrimination when forming a contract and in the contractual relationship.

d. Independent contractors are protected by federal law against discrimination when forming a contract and in the contractual relationship.

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

d. It turns information into indecipherable code.

Shawna received loan proceeds. Why wouldn't this appear on her income statement? a. It's debt. b. It's income. c. It's not cash coming in. d. It's not revenue.

d. It's not revenue.

Larry's income statement for the month shows a dramatic loss. What should he do? a. Apply for a line of credit. b. Hire more sales staff to bring in additional revenue. c. Implement major cost-cutting strategies. d. Look at his budget, previous income statements, and forecast.

d. Look at his budget, previous income statements, and forecast.

What must a licensee do when preparing a CMA for a consumer? a. Have an appraiser sign off on the price before it's presented. b. Hire a home inspector to physically inspect the property. c. Hire an appraiser to value the property. d. Make a statement that the opinion isn't an appraisal.

d. Make a statement that the opinion isn't an appraisal.

Trina's brokerage is a key player in the real estate marketplace. After 12 years of steady expansion, growth has slowed to a less-aggressive pace, allowing Trina and her management team to evaluate current operating structures and assess whether to take on new ventures. What stage of the business life cycle is Trina's business in? a. Decline b. Growth c. Maturity d. Midlife

d. Midlife (In the midlife stage, the company is a key player in the marketplace. Growth is less aggressive, and taking on new ventures is an option.)

Lena's buyer client Mindy is making an offer on Joe's house. Which party decides how much earnest money to offer? a. Joe b. Joe's agent c. Lena d. Mindy

d. Mindy (the seller may state a minimum acceptable amount, and a buyer can determine the amount to offer.)

Dan is planning the office space for his brokerage. He wants an open work area for his enthusiastic sales staff to collaborate and share experiences. Sometimes the group can get quite loud. Of the following, which is the best option for the location of the open work area? a. Across the hall from the conference room b. In between two sales offices c. Next to the reception, before the manager's office d. On the opposite side of the building from the public areas

d. On the opposite side of the building from the public areas

Tristan refused to let Marla list his property on the MLS, even though Marla told him that more exposure to the property would generate more potential buyers. Which two fiduciary duties are at odds in this situation? a. Loyalty and confidentiality b. Loyalty and reasonable skill and care c. Reasonable skill and care and confidentiality d. Reasonable skill and care and obedience

d. Reasonable skill and care and obedience

Which of the following is a good example of proper safety and security measures for employees at a brokerage office? a. Hire a safety and security officer. b. Invite clients to meet at your home. c. Provide your personal information on websites and social media. d. Require identification from customers and clients before real estate professionals go into the field with them.

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

Which of the following statements describes an affiliated business arrangement? a. Allows brokers to share office space and resources, such as administrative staff. b. Enhances efficiency, increases name recognition, and reduces overhead. c. Increases competition by leveling the playing field for small and large firms. d. Separate real estate-related companies share or refer business.

d. Separate real estate-related companies share or refer business.

Kari wants to evaluate her firm's brokerage services. What is the best way to gather data about completed transactions? a. She should ask each client, customer, and affiliate a few questions at the closing table. b. She shouldn't gather information from clients whose transactions did not close to avoid skewing her data. c. She should provide surveys at her firm's open houses. d. She should use an external firm to help her develop surveys for delivery to clients, customers, and affiliates.

d. She should use an external firm to help her develop surveys for delivery to clients, customers, and affiliates.

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

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

Which of the following is an example of involuntary contract discharge? a. Assignment b. Novation c. Partial Performance d. Specific Performance

d. Specific Performance

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

d. Statutory non-employees

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? a. Operational functions b. Security c. Space allocation d. Tendering

d. Tendering

What does LEED certification indicate? a. Relevant market data b. Shifts in socio-economic status c. Social and environmental changes d. The degree of building eco-friendliness

d. The degree of building eco-friendliness

If a minor enters into a contract with an adult, which of the following is true? a. The adult may legally hold the minor to the contract, but the minor cannot legally hold the adult to the contract. b. The contract is valid, and both the minor and the adult may legally hold the other party to the contract. c. The contract is void, and neither the minor nor the adult may legally hold the other party to the contract. d. The minor may legally hold the adult to the contract, but the adult cannot legally hold the minor to the contract.

d. The minor may legally hold the adult to the contract, but the adult cannot legally hold the minor to the contract.

Monty is advertising a number of listings in the local newspaper and includes the fair housing logo in the ad. What else is required? a. A link to his firm's fair housing policy b. A link to the Housing and Urban Development fair housing site c. The correct colors d. The verbiage, "Equal Opportunity Housing"

d. The verbiage, "Equal Opportunity Housing"

Charli has chosen to purchase only liability insurance on the office building she owns. Which of the following combinations of risk handling is she using? a. Acceptance and avoidance b. Avoidance and mitigation c. Mitigation and transfer d. Transfer and acceptance

d. Transfer and acceptance (Charli has transferred a portion of her risk by purchasing liability insurance and has accepted the financial risk of potential damage to the building.)

Urban Connection Realty is refining its brand and identity. The firm has implemented a focus on transparency to the consumer, a fee-for-services payment option, and a series of presentations around the processes involved in real estate brokerage transactions. Which emerging trend is this brokerage trying to address? a. Communication b. Social responsibility c. Sustainability d. Value

d. Value

Which of the following best describes a broker's supervisory requirements? a. Explicitly outlined in the law b. Limited to employees only c. Minimal d. Varied

d. Varied

Broker Bea is a managing broker who has 10 independent contractors and two employees working for her. Based on this information, does the Occupational Safety and Health Act apply to her brokerage? a. No. These laws only apply to brokerages that have a total of at least 15 combined employees and/or independent contractors. b. No. These laws only apply to brokerages with at least 15 employees. c. Yes. These laws apply to any business with any number of employees or independent contractors. d. Yes. These laws apply to any business with at least one employee.

d. Yes. These laws apply to any business with at least one employee.

Which of these scenarios would best be solved with short-term financing? a. You don't have enough cash or reserves to pay for repairs to your office building. b. You don't want to make loan payments, but you need funding for your firm's expansion. c. Your firm doesn't have a solid credit history, but you need cash to fund your new branch office. d. Your forecast shows that you won't be able to fully fund operations in February and March, but the rest of the year looks great.

d. Your forecast shows that you won't be able to fully fund operations in February and March, but the rest of the year looks great. (it's best used when it can be paid back from operations in a short period of time.)