Real Estate Brokerage: Unit Exams
Which of these technological advances gives users remote access to files and other data through a web browser? Cloud computing Teleconferencing Central database Firewall
Cloud computing
Increasing the size of one's business ________operations. Complicates Reduces Simplifies Ceases
Complicates
What is the key consideration for the conference room in a brokerage? Breastfeeding station Beverage service Security Confidentiality
Confidentiality
Which of these would be considered a buyer profile niche? Residential sales First-time homebuyers An urban redevelopment area Industrial sales
First-time homebuyers
Which term means the horizontal expansion of a business through enlarging its physical presence or impact via advertising, networking, or adding offices in new locations? Geographic expansion Sector expansion Service expansion Inorganic growth
Geographic expansion
Which one of these will most likely impact an investor's ability to develop a new real estate project in a particular area? Presence of wetlands Proximity to a regional airport The local planning board's meeting schedule An environmental impact study being conducted on neighboring land
Presence of wetlands
Which office area's purpose is to promote the brokerage's image to the public? Restroom Conference room Reception Training room
Reception
Which term is defined as your selected consumer base? Gross domestic product Market share Target market Base sales volume
Target market
In contrast to organic growth, inorganic growth usually involves _______. The joining of two companies A gradual progression An inside job A change in location
The joining of two companies
Jim has an idea to open his brokerage in a Victorian house in a quiet residential neighborhood. What's the first thing Jim should look into before opening up shop? Zoning ordinances Space requirements Signage requirements Wine pairing guides
Zoning ordinances
On a balance sheet, which of these would be considered a liability? Accounts receivable An automobile A bank account A debt owed
A debt owed
What would be considered a business opportunity according to a SWOT analysis? A skill or trait that is aligned with a business's goals An external factor that could be used for business gain A deficiency of skills or traits needed to achieve a business goal An external factor that could restrict or inhibit business
An external factor that could be used for business gain
Jeremy is evaluating a new business opportunity for his brokerage. He should _________. Go where the competition is Go where the competition isn't Analyze market trends Eliminate all risk
Analyze market trends
Which of these statements about ADA requirements is true? Reasonable accommodation is clearly defined by the ADA. Reasonable accommodations are only required for customers. Businesses may be eligible for tax relief to offset costs incurred to comply. ADA requirements apply to building access, not the services offered there.
Businesses may be eligible for tax relief to offset costs incurred to comply.
What value is a QR code in advertising? People will be attracted to it because it's new technology. Codes allow you to provide additional listing or firm information in a very small space. QR codes allow you to embed tracking devices so you can track users. Scanning the code allows users to instantly set up showings.
Codes allow you to provide additional listing or firm information in a very small space.
Donna believes if she's not directly involved with every step of a process, it's not going to get done correctly. Which style of management does Donna likely use? Participatory Coercive Laissez-faire Autocratic
Coercive
Reese and his staff have developed an engaging, action-oriented listing presentation to present to potential sellers. Which component in the marketing model does this represent? Creating Delivering Communicating Exchanging
Communicating
When analyzing financial ratios based on the balance sheet, _________. The current balance sheet provides all the information needed Lenders are concerned mainly with the debt/worth ratio Comparing balance sheets over a period of time can provide information about a firm's financial health The net profit ratio shows the proportion of expenses to revenue
Comparing balance sheets over a period of time can provide information about a firm's financial health
Mike and Ike set up a real estate company. Mike, Ike, and Spike each own a portion of the stock. Mike & Ike Realty is a legal entity of its own. Mike is involved in a: Sole proprietorship Partnership Corporation Limited Liability Company
Corporation
Broker-owner Mei is evaluating three companies to acquire as a strategic move to expand her brokerage. In addition to asking questions to determine each company's value, market presence, and motivation to be acquired, what else should Mei explore? Office decor Employee demographics Cultural fit Physical equipment
Cultural fit
The firm's target market information in the marketing plan includes which one of these? Average time on market Inventory of homes Interest rate trends Demographics
Demographics
Broker Sam requires her licensees to follow strict safety and security measures when working in the field. Which licensee followed proper safety and security measures? Eliot filled out the sign-out sheet when leaving the office, and called in his location for a listing appointment. Joy ignored a lewd comment that a client made while showing a listing. Teresa arranged for her clients to meet at her house so they could carpool to the listings. Janet's new client, Joe, forgot his ID. Janet waived the requirement, since Joe told her he knows her best friend.
Eliot filled out the sign-out sheet when leaving the office, and called in his location for a listing appointment.
Which of these has always had a significant impact on housing demand? Number of nearby restaurants Choice of building materials Employment levels The local mayor's popularity
Employment levels
Funds belonging to others includes which types of accounts? Checking Investment Escrow Payroll
Escrow
_____ means that a brokerage conducts business in a fair and equitable manner. Social responsibility Ethics Behavior Sustainability
Ethics
Nat has a friend who is in the home construction business, and he says that in the last six months, there has been an increased demand from the developers to build homes that are more energy efficient and that use sustainable and non-toxic housing materials. What current market trend is this an example of? Increased density Greener buyers Smaller houses, bigger houses Aging of Baby Boomers
Greener buyers
Your new investor client wants to find a multi-family building that he wants to refit with energy-conservation measures, including tankless water heaters, solar panels, and low-flush toilets. Based on this, you know your client is interested in appealing to which of these real estate market trends? Smaller houses, bigger houses Increased density Greener buyers Aging Baby Boomers
Greener buyers
As a member of a multiple listing service (MLS), broker participants cooperatively share listing data and offer complementary access to MLS databases to consumers. How does this benefit the brokerage and its customers? Levels the playing field for small and large firms Allows brokers to share tricks of the trade Refers business between separate real estate related companies Decreases competition so small firms can thrive
Levels the playing field for small and large firms
As manager of the sales team, Judy has direct responsibility for reaching the company's financial goals. What type of authority does Judy have? Line Functional Staff Centralized
Line
Based on what you know about naming a business, which of these names would be the most appropriate for a new firm? Schmeeckleberger Realty Regina's Residential Realty 2016 Realty Live Urban Realty
Live Urban Realty
Broker Millie wants to start her own brokerage. The market is hot right now, and she wants to get her brokerage up and running ASAP. Once things slow down a little, she'll figure out a business plan and other details. Which of these is true of this situation? The only good reason for not planning is when the broker wants to take advantage of a hot market trend, so Millie is on the right track. The only good reason for not planning is when the broker has a lack of funds and needs to start the brokerage with a minimal budget. Planning is not that important in the future success of an organization. Millie will probably be as successful with or without a plan. Making a plan and implementing it is essential to the future success of an organization.
Making a plan and implementing it is essential to the future success of an organization.
Why is it important for tenants and owner/landlords to review the insurance section of a commercial lease? Sometimes insurance is not required, so the section should be removed from the lease. The tenant and owner/landlord need to agree on which insurance agent to use. Many times, the amount of insurance specified in the lease is higher than the amount a tenant actually carries, and higher than the amount the landlord actually requires. The tenant needs to witness that the landlord has specified in the lease the amounts of insurance the owner is carrying on the building and its contents.
Many times, the amount of insurance specified in the lease is higher than the amount a tenant actually carries, and higher than the amount the landlord actually requires.
When analyzing the competition you should evaluate affiliations, _______, marketing strategies, services, and employee benefits. Cameras Furniture Office location Transportation
Office location
Which of these is a true statement about a brokerage's building safety? Overgrown hedges near the entrance pose a problem. Occupant health is less of a consideration than security. A broker should not get involved in security measures, to minimize litigation potential. Thick doors are a fire hazard.
Overgrown hedges near the entrance pose a problem.
Tina is planning her brokerage's office space. Since the primary purpose of the office is to meet with customers, it's important to provide privacy. Which configuration is best for this office? Lounge Loft Partitioned Open
Partitioned
Which type of legal structure may be either general or limited in type? Sole proprietorship Partnership Corporation Limited liability corporation
Partnership
Although there's crossover, it's said that a leader is typically more focused on vision and strategy, while a manager is more focused on _______________. Profits and losses Forecasting and data Policies and procedures Facilities and maintenance
Policies and procedures
What should be the primary consideration in an office configuration? Amenities Food service Current trends Productivity
Productivity
Which of the following has an INDIRECT effect on the real estate industry? Zoning ordinances Regional elections Employment trends Building codes
Regional elections
A market analysis of the economic, _______, and competitive business environments should all be part of planning a new business. Regulatory Sales data GDP CCI
Regulatory
When a leader establishes an atmosphere of mutual ________ others will be inspired to follow. Admiration Respect Strife Equality
Respect
What number is most often used to evaluate how much a business is worth? Fair market value Discounted cash flow Terminal business value Return on investment
Return on investment
How is organic growth defined? The growth of a business through the gradual adoption of new services and increases in market share The horizontal expansion of a business The vertical expansion of a business The rapid growth of a business through the acquisition of or merger with another company
The growth of a business through the gradual adoption of new services and increases in market share
Which of these states what the organization is about and its reason for being? The projected outcome statement The long-range plan The vision statement The mission statement
The mission statement
Ralph's income statement for his firm showed a nice profit for the quarter. How can Ralph best use this information? To forecast next quarter's profits To apply for a loan To compare to other quarters To determine his spending rate
To compare to other quarters
Which of these statements is true? A new licensee who is going to work as an independent contractor must complete an independent contractor agreement, a W-9, and a broker sponsorship form. Licensees working as independent contractors may or may not (at their own discretion) complete the W-4 paperwork when affiliating with a new broker. The type of IRS-reporting/tax-withholding papers a new employee or contractor must complete depends solely on the number of hours they work each week. Licensees working as independent contractors are not required to complete any tax-withholding or IRS-reporting paperwork when affiliating with a new broker.
A new licensee who is going to work as an independent contractor must complete an independent contractor agreement, a W-9, and a broker sponsorship form.
Jennifer is selling her property. She has hired Larry as her agent. After the property is listed, Jane brings her client, Andrew, to see the property, which Andrew is interested in purchasing. Who is Larry in this scenario? A sub-agent A buyer's agent A seller's agent A dual agent
A seller's agent
When a broker realizes she has made a mistake and quickly takes ownership without blaming others, she is displaying the leadership quality of __________. Decisiveness Accountability Delegator Empathy
Accountability
Which statement most accurately describes a licensee's responsibility related to written offers on their listing, according to the NAR Code of Ethics? A licensee is only required to present formal written offers within a certain range of the listing price of the property. All formal written offers received by the licensee must be presented to the owner, unless the owner has accepted a previous offer. A licensee is only required to present formal written offers that are equal to or more than the listing price. All formal written offers received by the licensee must be presented to the owner until closing or execution of a lease, unless the client waives this obligation in writing.
All formal written offers received by the licensee must be presented to the owner until closing or execution of a lease, unless the client waives this obligation in writing.
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? None of them; the brokerage is exempt from FLSA requirements because of its size The two part-time workers The full-time worker All three employees
All three employees
The MLS in your area prohibits limited service agents from listing properties for sale. This is ______. Fine as long as it prohibits all discount agents Common to all MLS systems An antitrust violation A risk management technique to prevent antitrust violations
An antitrust violation
Who would likely have the most difficult time transitioning into a managing broker role? An associate broker at the same office An associate broker from another office A managing broker from another office A former managing broker from the same office
An associate broker at the same office
What action will allow an organization to create external equity for its compensation plan? Work with an outside consultant to develop the compensation plan. Ask employees to provide data about compensation levels at organizations where they worked previously. Analyze data about compensation structures from similar organizations. Create a series of pay grades or pay ranges for the various positions within the organization.
Analyze data about compensation structures from similar organizations.
What's the best definition of a branding opportunity? Being consistent in what you share as your brand and your identity Any activity that gets your brand in front of the marketplace Your logo and marketing materials Development of your tag line
Any activity that gets your brand in front of the marketplace
A broker has a legal obligation to ensure that sales associates are properly trained in ______. Business management and planning Any specialty area where the licensee is providing services to the consumer Government-backed housing programs and lending options available to consumers Developing broker price opinions
Any specialty area where the licensee is providing services to the consumer
Broker Donna plans to hire three licensees to begin growing her business from a one-agent to a four-agent firm. What tip would you offer Donna regarding the impact of growth on her as the broker-owner? As more staff is hired, she will spend more time managing sales staff. More growth means less complex operations. As more staff is hired, she will spend more time pursuing business. More growth means lower cost to do business.
As more staff is hired, she will spend more time managing sales staff.
Milly is a broker who is coaching a sales associate, Laura. The first step in Milly's coaching process is to ______. Clarify their roles as teacher and student Ask questions about Laura's goals and challenges Monitor Laura's performance to define strengths and weaknesses Communicate a development plan to Laura
Ask questions about Laura's goals and challenges
Which special lease clause stipulates that the tenant is allowed to assign or sublet the rented space to a sublessee if the tenant has a change in circumstances? Tax Escalation Service included Assignment/subletting
Assignment/subletting
Because it's difficult for real estate professionals (and brokerages) to judge the quality of their service based on client loyalty, the firm's managing broker should inspire and empower everyone at the brokerage to ______. Offer a discounted commission rate to everyone who provides a positive online review of the brokerage Do whatever they need to do to make the client happy Be problem-solvers within the limits of the law and their license Call all of their former clients and conduct in-depth interviews to find out if they could have done anything better to help them
Be problem-solvers within the limits of the law and their license
While conducting an interview, you ask the candidate, "When was the last time you disagreed with your current broker, and how did you handle it?" This is an example of a(n) __________ interview question. Illegal Legal, but unethical Behavioral Career goal-related
Behavioral
In addition to a wage or salary, which of these items would normally be considered part of an employee's compensation package? Benefits such as health insurance, paid time off, and a retirement plan Use of office space and furniture Employer withholding of payroll taxes Use of equipment such as computers or tools
Benefits such as health insurance, paid time off, and a retirement plan
Rick's a supervising broker. One of his experienced licensees, Katrina, accidentally committed a licensing violation by not providing a required disclosure. Who's responsible? Only Rick, because he's the supervising broker Only Katrina, because Rick doesn't have supervisory responsibility for experienced licensees Both Rick and Katrina Neither Rick nor Katrina
Both Rick and Katrina
The 1950 case involving the District of Columbia's Washington Board of Realtors and the National Association of REALTORS® determined that "trade" involves which transactions? Both interstate and intrastate Interstate only Intrastate only Only transactions outside Washington, D.C.
Both interstate and intrastate
A broker can best support sales associate productivity by providing training on ______. Business planning Real estate law Loan underwriting requirements Telephone etiquette
Business planning
How might a company help its non-English-speaking agents from another country succeed in its U. S. offices? By assigning them to an Anglo boss By giving them bonuses for excellent work By providing English as a Second Language (ESL) classes and tutors By forcing them to speak English
By providing English as a Second Language (ESL) classes and tutors
Which of these items is an advantage to the broker of hiring experienced licensees rather than those who are newly licensed? Ability to produce consistently means they will accept a lower split Easy to train according to the broker's desired processes Capable of making an immediate contribution to the brokerage Inexpensive to recruit
Capable of making an immediate contribution to the brokerage
Carmen is a new licensee who wants to drum up some business. There are a lot of high-end homes in her area and she would love to sell one of them. She sees a few "for sale" signs and thinks perhaps she could convince the sellers to drop their current agent and allow her to represent them. Which of these is true? Carmen may try to convince the sellers to break their contract if she believes the property is not priced properly. Carmen may not try to persuade sellers to break the contract they have with another licensee. Carmen can contact the sellers if they have an exclusive listing agreement. Carmen should look up the listings on the MLS and then prepare an appraisal at a higher value in order to persuade the sellers to sign with her.
Carmen may not try to persuade sellers to break the contract they have with another licensee.
What types of penalties can the Federal Trade Commission impose for violations of truth in advertising laws? Cease and desist orders, civil and monetary penalties, and corrective advertising or disclosures. Civil penalties and one year in prison for each day the ad was run. Cease and desist orders, as well as one year in prison for each deceptive ad. Forced letters of apology to every consumer who purchased the product.
Cease and desist orders, civil and monetary penalties, and corrective advertising or disclosures.
Business goals should be attainable. What does this mean in terms of SMART goals? Easy to track progress toward the goal Challenging and based on competitors' successes Challenging yet realistic and based on actual data Easy to achieve without much effort
Challenging yet realistic and based on actual data
What's the best method for ensuring that critical files are available even in the event of a disaster? Local server storage Cloud-based storage Hard copy storage in multiple locations Removable hard drives
Cloud-based storage
How do you use an operating budget once it's prepared? Compare forecasted income and expense figures against the budget. Compare actual income and expense amounts to budgeted amounts. Compare cash flowing into and out of the firm to budgeted revenue. Compare the current year's budget with the previous year's budget.
Compare actual income and expense amounts to budgeted amounts.
A supervising broker is responsible for monitoring the licensee's ___________. Work hours Completion of CE requirements Telephone communications Business expenses
Completion of CE requirements
Commonly, the FTC will receive leads about a potential antitrust violation through which avenue? Consumer complaint Reviewing business financial records Monitoring company stock prices Audits of business practices
Consumer complaint
Broker Paula has a culture of retention at her firm. She makes sure to hire the right people, support her workers in achieving the company's goals, and _________. Bad mouth other brokers in the area Create a positive work environment Give her licensees a 100% commission Offer yearly bonuses
Create a positive work environment
A broker can use "supporting the company mission" as a common goal for sales associates, a strategy that helps ______. Associates build their personal business Create a strong team dynamic Improve the brokerage presence in the neighborhood Reduce brokerage expenses
Create a strong team dynamic
Jensen is a broker who takes pride in having a top-notch sales team. One of his key strategies that keeps the team performing effectively is his recognition program, which ______. Develops associate knowledge and skills Creates worker motivation Models clear communication Clarifies organizational goals
Creates worker motivation
Which of these acts protects consumers against real estate licensees who use false, misleading, or deceptive actions or practices in the advertising, offering for sale, selling, or leasing of personal property or real property? CPSIA DTPA FDA FDIC
DTPA
Which of these is considered illegal based on a buyer's race, color, national origin, sex, religion, familial status, or disability? Informing your buyer that a house in which they are interested is under contract Denying that a house is available for sale when it actually is Showing your buyer all homes in which they're interested, even if the homes don't appear to meet their needs Declining to show your 30-something buyer a condo in a registered senior community
Denying that a house is available for sale when it actually is
The new worker orientation at a brokerage should _______________. Weed out the poor hiring choices Describe the behaviors expected of the brokerage's affiliates or employees Establish the managers' authority from the very beginning Ensure that all workers thoroughly understand disciplinary measures for policy violations
Describe the behaviors expected of the brokerage's affiliates or employees
Which of these is a characteristic of a poorly written job description? Describes tasks without accountability standards Provides a basis for performance assessment Defines reporting structure Describes primary job responsibilities
Describes tasks without accountability standards
You're a real estate broker with 24 salespeople in a mid-size office in an urban area. What is the most effective way for you to protect your firm from lawsuits? Train your sales staff on effective negotiation skills Make timely use of your attorney Get errors and omissions insurance Develop, implement, and train your staff on policies and procedures
Develop, implement, and train your staff on policies and procedures
A broker who assigns significant resources to support affiliated licensees has a(n) __________ staffing philosophy. Development-focused Unsustainable Laissez-faire General oversight
Development-focused
As with most business decisions, there are pros and cons to forming business alliances. Which of these presents a challenge to mergers and acquisitions? Access to new markets Increased financing options Additional resources Different business models
Different business models
What must a licensee do regarding property held directly or indirectly if it becomes the subject of a real estate transaction? Reduce the commission by half. Offer the property for sale within the firm before offering it to the general public. Offer the cooperating broker compensation. Disclose the interest to all parties to the transaction.
Disclose the interest to all parties to the transaction.
Dirk is a sales associate who has deposited an earnest money check into the wrong account. His broker, Oscar, is following a problem-solving process to make sure Dirk doesn't make this error again. After analyzing the problem, Oscar believes that Dirk simply wasn't trained properly on the process for handling earnest money, so the action he selects is to provide Dirk with training on the process. Which of these is an important part of the problem-solving process that Oscar should also perform? Dock Dirk's commission for the amount of the earnest money check. Document the situation and the action Oscar has selected. Inform the local REALTORS® association of Dirk's error. Initiate a disciplinary action for Dirk.
Document the situation and the action Oscar has selected.
A high turnover rate at a brokerage could be a result of workers who _________. Are too inexperienced to know that the work will be the same at any other brokerage Are eager for new challenges Don't receive the right support to achieve the company's goals Have a preference for variety
Don't receive the right support to achieve the company's goals
______ is a doctrine that protects an employer's right to hire or fire an employee whenever desired, with or without a cause, including for an unreasonable cause. Union collective bargaining agreement Employment at will Independent contractor status Mutual at-will employment agreement
Employment at will
Which of these is an indirect expense? Paid referral fees Commissions paid to your sales staff Cooperating broker commissions paid to other firms Errors and omissions insurance
Errors and omissions insurance
Avoiding antitrust violations is critical. Which of these actions will help you avoid price fixing allegations? Establish fees independently or as a company. Engage in discussions about fees with agents from other companies. Consult with competitors to determine competitive pricing. Promote "industry rates" in conversations with consumers.
Establish fees independently or as a company.
Who's responsible for protecting the firm's reputation? Choose the best answer. Staff who interact with clients Administrative staff The sales staff Everyone in the firm
Everyone in the firm
Which of these is a common concern that buyers express about their real estate licensee? Failing to communicate information about the transaction's progress Failing to share information about the loan process Showing the buyer's property to families who have not been pre-qualified for a loan Refusing to show properties that are outside the buyer's price range or location criteria
Failing to communicate information about the transaction's progress
Which of these would be considered a buyer profile niche? Residential sales First-time home buyers An urban redevelopment area Industrial sales
First-time home buyers
Which of these individuals would be a competent party to a contract? Byron, a 17-year-old MENSA member Graciella, a 28-year-old unemployed parolee Claudia, a 37-year-old schizophrenic in-patient Norman, a 40-year-old heroin addict
Graciella, a 28-year-old unemployed parolee
The 1970 case against Prince George's County Board of REALTORS® found that the board was refusing to work with members who did not follow certain suggestions. What is this an example of? Group boycotting Tie-in arrangement Price fixing Market allocation
Group boycotting
Broker Mack is a great broker, but not so great when it comes to interviews. Which of the following questions is a legally permissible question to ask interviewees? You might have to work some nights and weekends. Do you have someone to watch your kids during those times? Are you married, and if so, is your husband going to mind that you're out in the evenings? Have you ever had a disagreement with a client, and if so, how did you handle it? I noticed you're using a cane. Are you going to have trouble getting into homes that have a lot of steps?
Have you ever had a disagreement with a client, and if so, how did you handle it?
Broker Hal has conducted eight exit interviews in the last three years, and now he's sitting down to review those interview notes. Which of these is true of this situation? He should only consider the comments from the people who resigned, because those who were terminated will be too bitter to provide valuable information. He should only consider the comments from licensees, rather than from any regular staff members, because licensees are the only ones who matter at the brokerage. He should look for common threads or themes in those notes that could provide valuable information about the brokerage as a workplace. He should only consider the "constructive criticism" form of interview feedback, because the positive comments—while nice to hear—aren't helpful for the brokerage.
He should look for common threads or themes in those notes that could provide valuable information about the brokerage as a workplace.
The first step in succession planning is to ______. Assess existing staff to determine suitability for promotion Identify skills required in critical positions in the firm Develop a recruitment plan Implement a training plan
Identify skills required in critical positions in the firm
Under what circumstances can a broker be held liable for not supervising a licensee? If a lawsuit is brought against the broker's licensee due to misconduct If the licensee got a speeding ticket while conducting real estate business for the firm If the licensee unintentionally mispriced a property If the licensee knew that a licensee from another firm had stolen a customer
If a lawsuit is brought against the broker's licensee due to misconduct
Larry is assisting a buyer who is making an offer on his client's listing. If Larry is too helpful to the buyer, what might occur? Implied friendship Undisclosed single agency Implied agency and undisclosed dual agency He might get a bonus from the buyer
Implied agency and undisclosed dual agency
Where should the brokerage's termination policy for licensees and employees be found? In the brokerage's listing agreements In the brokerage policy manual On the brokerage's website In the brokerage mission statement
In the brokerage policy manual
Which of these statements is true regarding legal recourse for independent contractors who experience discrimination from their broker? Independent contractors aren't protected against discrimination under federal law. Independent contractors are protected by federal law against discrimination when forming a contract and in the contractual relationship. Independent contractors are considered employees for the purposes of most federal labor and employment laws. If the broker has more than 15 licensees working as independent contractors, federal discrimination laws enforced by the EEOC are applicable to those licensees.
Independent contractors are protected by federal law against discrimination when forming a contract and in the contractual relationship.
When should your firm perform the risk identification process? Once, when writing the risk management plan Initially when writing the risk management plan, and as needed thereafter On a five-year cycle when updating the strategic plan Quarterly when updating the financial statements
Initially when writing the risk management plan, and as needed thereafter
How do strategies that involve workers in business planning benefit a brokerage? It's less expensive than paying salaried managers to do the same work. It reduces the executives' workload. It increases worker commitment and accountability to the brokerage. It shifts legal liability from the business to its workers.
It increases worker commitment and accountability to the brokerage.
Which of these is the best reason to support diversity in a real estate office? It is politically correct. It's hard to find employees. It is the best way to provide services to a broad array of clients. It creates a challenging workplace.
It is the best way to provide services to a broad array of clients.
Which of these statements is true about creating a work structure? It's only necessary for planning purposes when beginning a new business. It should be evaluated periodically to see if it still makes sense for the organization. It should be written once under the assumption that roles will not change. It is only necessary to determine roles if there are more than 10 employees.
It should be evaluated periodically to see if it still makes sense for the organization.
Which of these statements is true of a Limited Function Referral Organization? It's a brokerage that is allowed to use unlicensed salespeople. It's a real estate brokerage that doesn't buy or sell, but gathers business referrals and leads. It's another name for any type of limited service brokerage. It's a full-service brokerage that only accepts clients who have been referred by another broker.
It's a real estate brokerage that doesn't buy or sell, but gathers business referrals and leads.
Which of these is true of discussing the business model of competitor A with competitor B in order to determine a joint course of action against competitor A? It's permissible. It's an example of price fixing and an antitrust violation. It's an example of a tie-in arrangement and an antitrust violation. It's an example of group boycotting and an antitrust violation.
It's an example of group boycotting and an antitrust violation.
Which of these is a characteristic of a commission-based pricing structure? Clients pay for just those services they want or need to use. It's sometimes hard for clients to see the value in the commission charged. The tasks you perform during the transaction are clearly visible to clients. It compensates brokerage firms and licensees for services actually performed.
It's sometimes hard for clients to see the value in the commission charged.
Max has a written agency agreement with Rufus in which Max will receive all of the listings in the subdivision that Rufus purchased (with Max's representation) and is developing. One day when Rufus is visiting the site of the subdivision, a work truck accidentally runs him over and he's seriously injured. Rufus can no longer run the development of the subdivision. What happens to Max's agency coupled with interest? Rufus must now pay Max the commission that he didn't get from the original listing, and the agency relationship is terminated. Max has no recourse; the agency relationship is terminated and he receives no compensation. It's still in place because it doesn't terminate on the death or incompetence of the principal. Max now owns the subdivision as a result of the principal's death or incapacity.
It's still in place because it doesn't terminate on the death or incompetence of the principal.
Larry's income statement for the month shows a dramatic loss. What should he do? Look at his budget, previous income statements, and forecast. Implement major cost-cutting strategies. Apply for a line of credit. Hire more sales staff to bring in additional revenue.
Look at his budget, previous income statements, and forecast.
Broker Tiffany does her best to make her licensees satisfied they've affiliated with her, in part because replacing them costs her brokerage in time, expense, and ___________. Lost productivity Client perception Local association status Social network connections
Lost productivity
Which of these is a good defensive risk prevention strategy? Destroy transactional files as soon as the closing is over to protect confidentiality. Clear out old files when you have no more room for new ones. Maintain good records as proof of conversations, document delivery, etc. Allow easy access to all of the firm's records.
Maintain good records as proof of conversations, document delivery, etc.
Bob Wolf, the firm's bookkeeper, doesn't interact with clients. His main responsibility is to manage the firm's escrow records. What's his responsibility in helping maintain the firm's reputation? Fill in when the receptionist goes to lunch. Become a licensed sales agent so he can work with clients. Maintain spotless escrow records. Share escrow account information with the firm's associates.
Maintain spotless escrow records.
Samantha is the owner of her own real estate brokerage firm. Which of these is one of her responsibilities as broker-owner? Making sure her licensees maintain their licensure Explaining the agency relationship to her licensees' clients Encouraging brokers who work for her to start their own firms Collecting fines from her licensees who violate license laws or regulations
Making sure her licensees maintain their licensure
Good record retention is one way to ______ risk. Eliminate Manage Elevate Increase
Manage
Which of these describes the networking feature of a computer system? Enables data compilation, sorting, and report generation Provides internet connectivity to the brokerage Manages the brokerage's intranet Sends information to connected computers
Manages the brokerage's intranet
The owner of a real estate brokerage firm hired Eric to oversee the day-to-day operations of the business. What type of broker is Eric? Active Assistant Broker-owner Managing
Managing
Darrel wanted managing broker Ella to sign off on incomplete paperwork, claiming she knew he was "good for it." Why should Ella refuse? She shouldn't, if she trusts Darrel. Managing brokers are responsible for their associated licensees' actions. Brokers should never trust licensees. Darrel is her friend and he forgets things a lot. She needs to teach him a lesson.
Managing brokers are responsible for their associated licensees' actions.
Which of these can help you determine the best location and structure of an office, based on the needs of your target market? Business directories Executive summary Competitors' reviews Market analysis
Market analysis
Which of these is a good cash management technique? Wait until revenue is low before applying for a line of credit. Review your checking account to decide if your firm needs cash. Match revenue and expenses with cash flow. Analyze cash flow requirements as soon as it appears that cash is running low.
Match revenue and expenses with cash flow.
There are three methods of dispute resolution: litigation, arbitration, and ______. Facilitation Mediation Relaxation Intercession
Mediation
Your newest salesperson, Emily, has made a few careless errors in the past two months. You've already identified and analyzed the problem, brainstormed and selected a solution, and documented everything. What's the next and final step to the problem-solving process? Fire Emily. Start the process all over again, finding a new solution. Monitor the situation. Analyze why Emily is such a careless person.
Monitor the situation.
________ is a purpose-driven organization that is propelled by a passionate combination of entrepreneurial spirit, cultural heritage, and the advocacy of its members. National Association of Real Estate Brokers (NAREB) Asian Real Estate Association of America (AREAA) National Association of Hispanic Real Estate Professionals (NAHREP) Minority Real Estate Professionals of America (MREPA)
National Association of Hispanic Real Estate Professionals (NAHREP)
Gary's company is renovating several of the units in its five-story apartment building that was built in 1989. Are they required by the Americans with Disabilities Act to add elevators? No, because it's fewer than six stories tall. Yes. Any time an older building is remodeled, it must be brought into full compliance with ADA requirements. No, because it was built before 1990. Yes, because it's more than four stories tall.
No, because it was built before 1990.
Broker Kay is the anti-hoarder; she hates all forms of clutter, especially paperwork. She'd love to shred every bit of paperwork the second a transaction closes, and decides to write her brokerage policy to state that all transaction paperwork must be shredded within one month of the transaction's closing. Is this okay? Yes. As the broker, Kay is allowed to create her own brokerage policies, including those regarding recordkeeping. No. Kay's brokerage must keep all real estate transaction records for at least one year, according to the National Association of REALTORS®. No. Kay must obey the recordkeeping requirements established by state laws and regulations. No. Kay's brokerage must keep all real estate transaction records for five years.
No. Kay must obey the recordkeeping requirements established by state laws and regulations.
Remembering the acronym ______ can help you remember the fiduciary duties an agent owes to a client. OLD CAR CANDOR FARMOR ARMOR
OLD CAR
A broker needs to train affiliated licensees on properly following disclosure requirements. Which of these strategies will help the training initiative be most effective? Offer multiple classes so that new licensees are trained separately from experienced salespeople. Have all associates take a multiple choice exam at the end of the training. Use a "scared straight" approach by asking licensees who have been disciplined for disclosure errors to speak at the training. Create a document listing the disclosure rules and require all associates to sign an acknowledgment of receipt.
Offer multiple classes so that new licensees are trained separately from experienced salespeople
A sales associate's ability to work most effectively is affected by five factors. These are the physical and technical environment, communication, knowledge and skills, motivation, and ______. The real estate market Organizational effectiveness Emotional intelligence The organization's size
Organizational effectiveness
If one or more licensees in a firm have unusually high DOM, terminated listings, delayed closings, and marked disparities between listing and selling price, what steps can the firm take to correct these issues? Perform a review of training and operations processes. None. The firm has no control over external market conditions. Create an office policy stating that the firm won't agree to terminate listing agreements. Discourage licensees from accepting listings that may be difficult to sell.
Perform a review of training and operations processes.
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. Efficiency Entitlement Cost-based Performance
Performance
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? Manager Sales associate Clerical/administrative Personal assistant
Personal assistant
In the hiring process, which step narrows the field by identifying those applicants who don't meet the requirements of the position? Prescreening Interviewing Recruiting Selection
Prescreening
The ______ provides information about what activities should be resumed first when recovering from a disaster. Call tree Prioritized list of restoration functions Contingency files Income statement budget files
Prioritized list of restoration functions
Which one of these professional development opportunities is designed to give a licensee expertise in a particular area and to recognize the licensee's commitment to professional education? Required CE Real estate conference Real estate seminar Professional designation or certification
Professional designation or certification
Leigh Ann is a solid associate broker. She performs her tasks well, but not necessarily in an exemplary fashion. She confides in her supervising broker that she's a little bored with her current role and is interested in learning more about other positions in the firm. Which of these might provide a good opportunity for Leigh Ann without posing risk to her current position or to the firm? Promote her to supervising broker, giving her a team to manage. Demote her because she's not performing at an exemplary level. Provide cross training opportunities. Require her to complete additional training to improve her performance.
Provide cross training opportunities.
After determining the likelihood of an action occurring, it's important to calculate the level of ______. Risk matrix Risk exposure Mitigation activity Regulatory involvement
Risk exposure
The market for real estate in Chad's area has experienced a sudden increase in demand, and there aren't enough homes to go around. It seems like a bidding war ensues for every available property. What's the condition of the real estate market in Chad's area? Buyer's market Seller's market Stagnant market Imbalanced market
Seller's market
Josefina is a new licensee starting at a brokerage where she is the only Latina person, and the only person who speaks both Spanish and English. How does this make her an asset to the brokerage? She can work with Spanish-speaking clients more easily than other licensees can. She can shadow more experienced agents and help them with the grunt work. She is new and can be molded to the ways of the brokerage. She will bring in clients from her extended family and social connections.
She can work with Spanish-speaking clients more easily than other licensees can.
Lilith is a broker who offers her agents a 100% commission. Which of these is a potential problem for her with this compensation plan? She has less control over her agents' activities due to their level of experience. She's required to supervise her licensees more closely because of their level of experience. She may owe more taxes than she can afford to pay. She's responsible for paying her agents even when they aren't producing.
She has less control over her agents' activities due to their level of experience.
Two licensees are having a heated discussion about a floor call and who the call should have been assigned to. What should the managing broker do? Let them work it out among themselves. Sit them down together and review the situation to determine the best solution. Take the call away from both of them and assign it to someone else. Make an example of them in front of the rest of the office.
Sit them down together and review the situation to determine the best solution.
Terrell's staff has defined the firm's current place in the market and has analyzed the competition. This information is the _____ component of the marketing plan. Target market Mission statement Situation analysis Goals and objectives
Situation analysis
Todd is opening a new brokerage firm that will target young, career-minded individuals who are interested in urban living. Of the following, which medium is best suited for this market? Todd's blog Social media An outdoor billboard Collateral
Social media
Mack is an IT Desktop support technician. He explains that there are three key areas of system maintenance. What are they? Software updates, antivirus scans, and software/utility scans Software upgrades, backups, and barcode scans Backups, IT staff, and cloud storage Hard drives, recovery discs, and utilities
Software updates, antivirus scans, and software/utility scans
The first part of analyzing risk is to determine the ______ of the risk. Likelihood Severity Source Cause
Source
Which of these dictates the most important requirements for transaction record retention? State laws and regulations Whatever the broker decides The National Association of REALTORS® policy on record retention The local association of REALTORS® record keeping policy manual
State laws and regulations
Which of these requires that contracts transferring ownership of real property be in writing to be enforceable? Code of ethics Statute of limitations Fair Housing Act Statute of frauds
Statute of frauds
You're a broker, and lately, you've noticed that three of your salespeople seem to be constantly sniping at each other. It's affecting everyone at the brokerage. What should you do? Ignore it. They're adults, and you're not a babysitter. Fire them. You don't have time for this kind of nonsense. Call a meeting with all three of them, and tell them, "Shape up or ship out." Talk to them each individually to clarify the situation.
Talk to them each individually to clarify the situation.
Which one of these factors is most important for a broker to consider when deciding the best number of licensees to maintain on a brokerage's sales staff? The amount of office space and office equipment available The broker's willingness to recruit The amount of market share the broker wants to control The price range of listings that the brokerage usually handles
The amount of market share the broker wants to control
A broker is calculating how many licensees she can afford to accept in order to meet her brokerage's business goals. Her calculation uses two basic values: the amount that it will cost her to support each licensee, and __________. The price range of listings that the brokerage usually handles The typical business expenses licensees are responsible for paying The current state of the real estate market The amount of revenue she expects each licensee to bring to the brokerage
The amount of revenue she expects each licensee to bring to the brokerage
Which of these is considered a key factor in driving the real estate market? Race and national origin data The economy Education levels Transportation spending
The economy
Which of these is one of the IRS requirements for a real estate brokerage worker to be classified as a statutory nonemployee? The individual is supervised by a broker. The individual works fewer than 30 hours per week. The individual is paid by the hour, not by services provided. The individual and the employing broker have a written contract.
The individual and the employing broker have a written contract.
Which of these should all commercial leases contain? A non-compete clause The lease agreement start and end dates A nondisclosure agreement A confidentiality clause
The lease agreement start and end dates
Who's ultimately responsible for the actions of a personal assistant? The assistant The licensee The licensee and the licensee's supervising broker The principal to the transaction
The licensee and the licensee's supervising broker
If a minor enters into a contract with an adult, which of the following is true? The adult may legally hold the minor to the contract, but the minor cannot legally hold the adult to the contract. The contract is void and neither the minor nor the adult may legally hold the other party to the contract. The minor may legally hold the adult to the contract, but the adult cannot legally hold the minor to the contract. The contract is valid and both the minor and the adult may legally hold the other party to the contract.
The minor may legally hold the adult to the contract, but the adult cannot legally hold the minor to the contract.
Which of the following are true regarding a standardized set of policies and procedures? They're a primary tool in risk management. They often cause confusion. They don't assist in overall risk management, but they do play a role in human resources management. They're one of the risks associated with broker liability.
They're a primary tool in risk management.
Broker Craig fires salesperson Enrique for violating a provision of the license law. Which of these is true of this situation? This is not a valid reason for the broker to terminate his affiliation with a licensee. This is only a valid reason for the broker to terminate his affiliation with the licensee if the broker's given the licensee a written warning before the licensee violated the law the last time. This is only a valid reason for the broker to terminate the licensee's affiliation if the real estate commission has revoked or suspended the licensee's license for this legal violation. This is a valid reason to terminate the licensee's affiliation with the broker.
This is a valid reason to terminate the licensee's affiliation with the broker.
At least how many business days before closing must lenders provide borrowers with the Closing Disclosure? Three Five Six Seven
Three
Which of these is an example of antitrust violations common to real estate? Fraud, concealment, and misrepresentation Puffery, hyperbole, exaggeration Tie-ins, market allocation, and boycotting Profiteering, racketeering, and domineering
Tie-ins, market allocation, and boycotting
Of these, which is the best reason for continuing marketing efforts, even when revenue is down and the market is slow? To reduce the cost of contact with clients To spend all of the marketing budget To maintain visibility To maintain your business relationship with suppliers
To maintain visibility
Why should a business evaluate its competition? To understand its strengths and weaknesses To determine its GDP To evaluate the impact of environmental regulations To eliminate it from the market
To understand its strengths and weaknesses
Charli has chosen to purchase only liability insurance on the office building she owns. Which of these combinations of risk handling is she using? Mitigation and transfer Avoidance and mitigation Acceptance and avoidance Transfer and acceptance
Transfer and acceptance
A ____ breaks a more general budget line item into details, making it easier to use in guiding business operations. General operating budget Variable expense budget Monthly operating budget Profit center budget
Variable expense budget
Which of these is a characteristic of centralized organizational structures? Few levels of management Vertical chain of command Multiple business units Horizontal alignment
Vertical chain of command
What does agency coupled with interest mean? When a licensee holds an estate (or interest) in a property that is the subject of the agency relationship When a licensee's commission is paid as installments from the client and includes interest When two agents cooperate in bringing the buyer and seller to the transaction When the licensee is interested in purchasing a home on which they are the listing agent
When a licensee holds an estate (or interest) in a property that is the subject of the agency relationship
When should the Loan Estimate be provided to buyers? When buyers submit a loan application, or within three business days after submitting a loan application Within three business days prior to closing Once the loan application has been approved Immediately after the seller accepts the buyers' offer
When buyers submit a loan application, or within three business days after submitting a loan application
Ginny counters Tom's offer of $250,000 for her house, asking for $255,000. Ginny's agent sends the counter-offer to Tom's agent. Tom is out of town for the week and can't be reached. On Tuesday, Ginny decides to revoke her counter-offer and instead ask for $260,000. Can she do this? No, because Tom's agent has Ginny's first counter-offer. Yes, because she didn't write the original offer. No, because Ginny can't write two counter-offers. Yes, because Tom hasn't accepted the first counter-offer.
Yes, because Tom hasn't accepted the first counter-offer.
Ricky is working for Matt, a buyer client. Matt is interested in a property in which the listing agent offers compensation to cooperating agents. The listing agent has offered Ricky or any cooperating agent additional compensation if the transaction closes within 40 days. Is this ethical? Yes, licensees can receive compensation from multiple parties in the transaction. Yes, but only if all of the involved parties have full knowledge and provide consent. Yes, but only if the buyer client (Matt) has full knowledge of the compensation arrangement and provides consent. No, it is never ethical for a licensee to accept compensation from more than one party.
Yes, but only if all of the involved parties have full knowledge and provide consent.
When analyzing the number of Baby Boomers versus the number of Gen Xers in a particular market area, which factor is being considered? Age Purchasing power Employment rate Gross domestic product
Age
One evening during their weekly card game, Cecilia and her group of retired friends are recounting the difficulty they had finding a place they could afford and that was close to a hospital. Cecilia added that they were the lucky ones because she has a few other friends who have had to put their names on a waiting list to get into a low-maintenance condo just down the street. What current market trend is this an example of? Increased density Greener buyers Smaller houses, bigger houses Aging of Baby Boomers
Aging of Baby Boomers
One evening during their weekly card game, Cecilia and her group of retired friends are recounting the difficulty they had finding a place they could afford and that was close to a hospital. Cecilia added that they were the lucky ones because she has a few other friends who were unable to get out of the homes in which they raised their children and into more accessible and affordable housing. What trend is this an example of? Increased density Greener buyers Smaller houses, bigger houses Aging of Baby Boomers
Aging of Baby Boomers
Which of these statements is true about formal and informal organizations? A formal organization exists within the informal organization. An informal organization relies on the formal organization's rules. An informal organization works alongside the formal organization. A formal organization's rules control the informal organization.
An informal organization works alongside the formal organization.
All commercial leases should contain the conditions under which the lease can be terminated; the names and signatures of all parties; and ______________________________. A list of repairs that need to be made to the property by the tenant before the tenant can move in A clause determining who will pay to have an attorney review the agreement Restrictions as to utilities use Any additional information based on negotiations and specific situations
Any additional information based on negotiations and specific situations
Which of these statements describes business objectives? Business objectives are derived from the company's vision statement and expand upon it to define what the company's reputation will be at the conclusion of its current long-range plan. Business objectives are derived from business goals and align with the strategies that direct the actions laid out in the company's long-range plan. 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. Business objectives are derived from the company's strategies and expand upon them to define how much money the company will make by the end of its long-range plan.
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 economic indicator, used to represent inflation, is best defined as a measurement of average prices consumers paid for goods and services in a given month? Consumer price index Gross domestic product Market share Consumer confidence survey
Consumer price index
How can you calculate a firm's market share percentage? Divide the firm's number of sales by the total number of market sales. Divide the regional GDP by the firm's total number of sales. Multiply the average sales price by the firm's number of transactions. Multiply the firm's number of sales by the total sales in the market, then divide by 100.
Divide the firm's number of sales by the total number of market sales.
Which of the following laws requires foreign persons to pay capital gains taxes after selling property in the U.S.? ADA FIRPTA RESPA Truth in Lending
FIRPTA
Which of these is a true statement regarding a transition plan in a merger? It's important primarily for external stakeholders. It's important primarily for internal stakeholders. It's part of the company's ROI. It can help ease the growing pains of the new, larger enterprise.
It can help ease the growing pains of the new, larger enterprise.
Which of these is a true statement about facilities management? It should be left to the building manager. It applies to the building only. It involves the building, people, and processes. Safety is not a concern.
It involves the building, people, and processes.
What's a primary function of a job description? It provides a measurement tool for performance evaluation. It provides a pictorial view of the organization as a whole. It defines line functions for the team. It's used by management to predict future staffing needs.
It provides a measurement tool for performance evaluation.
Which of these describes a benefit of a long-range plan? It provides flexibility to change course if the plan doesn't materialize within a short period of time. It allows provisions for the company to change course when new trends in the market arise. It provides a strategic methodology for accomplishing set business goals. It gives decision makers multiple incentives for accomplishing the company's goals.
It provides a strategic methodology for accomplishing set business goals.
The sales department of a residential real estate firm has had some foreclosure listings, and has decided to hire a licensee who specializes in distressed property sales. What's the most likely impact on the marketing department? It will have to increase its budget to cover marketing for the new specialty. It will have to rewrite the marketing plan. It will need to decide how to incorporate the new niche into the existing marketing strategy. This decision doesn't impact the marketing department.
It will need to decide how to incorporate the new niche into the existing marketing strategy.
Which of these is the best definition of a budget? It's a flexible planning tool that changes frequently to match existing conditions. It's a report provided to your lender to prove that you can stay within specified spending parameters. It's a detailed management and planning tool that serves as your earnings and spending goal for a period of time. It's a high-level outline of your projected revenue and expenses for a given time period.
It's a detailed management and planning tool that serves as your earnings and spending goal for a period of time.
Shawna received loan proceeds. Why wouldn't this appear on her income statement? It's debt. It's income. It's not cash coming in. It's not revenue.
It's not revenue.
Which of these is a true statement about leaders and managers? Leaders tend to be more process-focused. Managers tend to be more people-focused. Leaders don't care about process. Leaders and managers share some of the same traits.
Leaders and managers share some of the same traits.
Sonja is meeting with a hearing impaired client for the first time. What should she do to comply with the Americans with Disabilities Act (ADA)? Hire a sign language translator to be present at the first meeting and all that follow. Inform the customer that they're required to hire a translator to be present at the first meeting and all that follow. Meet with the customer and offer to provide a sign language translator for future meetings and the signing of contracts. Hire a recorder to capture everything that's stated in the first meeting.
Meet with the customer and offer to provide a sign language translator for future meetings and the signing of contracts.
Which of these statements describes an affiliated business arrangement (AfBA)? Increases competition by leveling the playing field for small and large firms Allows brokers to share office space and resources, such as administrative staff Separate real estate-related companies share or refer business Enhances efficiency, increases name recognition, and reduces overhead
Separate real estate-related companies share or refer business
Which term means growing a business by offering services to a different niche market or by offering a wide variety of services? Geographic expansion Sector expansion Service expansion Inorganic growth
Service expansion
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 link to his firm's fair housing policy The correct colors The phrase "Equal Opportunity Housing" A link to the U.S. Department of Housing and Urban Development's Fair Housing site
The phrase "Equal Opportunity Housing"
Alison has set the goals for her new brokerage, and now she's ready to figure out the strategies. She's met with her mentor, James, so he can provide some guidance on strategy. James starts by explaining the purpose of strategy. Assuming James is an expert on the subject, which of these statements would he make about the purpose of strategy? The purpose of a strategy is to state what the company will focus on to fulfill its mission, and determine what are to become the priorities during the plan's defined timeframe. The purpose of a strategy is to support and help reach a goal by determining the method by which the goal can be achieved. The purpose of strategy is to divide a company's general objectives into realistic, manageable, smaller accomplishments. The purpose of a strategy is to provide alternative ideas, options, strategies, and resources when unexpected conditions arise.
The purpose of a strategy is to support and help reach a goal by determining the method by which the goal can be achieved.
How is inorganic growth defined? The growth of a business through the gradual adoption of new services and increases in market share The horizontal expansion of a business The vertical expansion of a business The rapid growth of a business through the acquisition of or merger with another company
The rapid growth of a business through the acquisition of or merger with another company
Choice of advertising and marketing mediums should be based mainly on _______. The length of time to prepare materials The target audience Previous medium use The firm's current acceptance of technology
The target audience
Broker Terrence is shopping for office space. He found a great deal on an office located on the corner of a busy intersection. Which of these from the market analysis will help Terrence decide if this is a good location for his office? The target market's traffic patterns Name recognition of competitors The target market's service needs Average rental rates
The target market's traffic patterns
Most long-range plans range from _______________. One to two years Two to three years Three to five years Five to eight years
Three to five years
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 clean-up costs Up to five times the actual clean-up costs Up to 100% of the actual clean-up costs Up to 10 times the actual clean-up costs
Up to three times the actual clean-up costs
In addition to photographs of the property's interior and exterior, include a(n) ________ of your listings if possible to give buyers a sense of the properties amenities and layout. Verbal description Video tour Blueprint Aerial photograph
Video tour
Nathan 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. Does this violate fair housing law? Yes, unless the owners specified that he use these terms in all marketing tools. No, as long as the developers have used the same terms to describe the development. Yes, because it implies that the listing is suitable only for a particular type of buyer. 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.
A listing ad in The Spartanville Tribune states, "Within walking distance to restaurants, nightclubs, shopping, and schools." Could someone find this ad to be potentially problematic? Yes, because it includes the term "walking." No, because it lists amenities used by both adults and children. Yes, because it lists specific amenities. No, because "walking distance" refers to a property-related factor.
Yes, because it includes the term "walking."
What's the difference between your brokerage's brand and its image? Your brand is what you want your identity to say about the firm; your image is how the marketplace perceives you. Your brand is the visual representation of your firm's identity. Your image is what you want the marketplace to think of and say about your firm. Your image is the visual aspect of the market's perception of your firm. The brand is what you want the firm's identity to convey. Your brand is your logo; your image is your logo plus all other marketing materials that your firm uses.
Your brand is what you want your identity to say about the firm; your image is how the marketplace perceives you.
Every business decision, big and small, must be aligned with ___________ to ensure that you're on the right path. Those of your business's potential clients Your business plan Those of your business's potential lenders Those of your business's top competitor
Your business plan
