Humber College PREX-1060A : Exam 4: Invigilated Theory Exam

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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

1. Examples of properties which would warrant a Phase 2 environmental assessment may include heavy industrial sites. Which of the following is NOT an example of a heavy industrial use?

A) Computer training institute
B) Chemical manufacturers
C) Power stations
D) Petroleum storage and distribution sites

2. Both the landlord and the tenant have responsibilities in the management of their relationship as per the commercial lease agreement. Which of the following is NOT an accurate statement regarding the roles and responsibilities of landlords and tenants as per the Commercial Agreement to Lease?

A) The landlord must address their tenants' issues in a timely manner in general but more so when the issue can result in serious and costly consequences.
B) Not all commercial leases require the landlord to perform repairs and maintenance.
C) Tenants are obligated to ensure they have adequate tenant insurance for their property.
D) All commercial leases require that tenants keep everything in and about the property, including all points of entry and exit, in good repair at all times.

3. A salesperson is representing a buyer client in the purchase of a fully tenanted mixed-use building. The agreement of purchase and sale will be in the name of a corporation owned by the buyer and several other shareholders. Which of the following statements is correct regarding the signing of this agreement of purchase and sale?

A) A major shareholder of the company must sign and date over their printed name.
B) The buyer must sign and date below the printed name of the corporation.
C) The general partner of the company must sign and date below the printed name of the limited company.
D) An authorized signing officer of the company must sign and date over the words: "I haveauthority to bind the corporation" and below the printed registered name.

4. When representing a client who is selling a business, a salesperson must be aware of concerns related to compliance. Which of the following is NOT a compliance concern?

A) The seller provides insufficient due diligence documents
B) The seller discloses all liabilities of the business in writing
C) The condition of goods, chattels, and fixtures cannot be verified
D) Income and expense statements contain misrepresentations

5. A salesperson is discussing the advantages and disadvantages of owning commercial real estatewith their investor buyer client. Which of the following is NOT an advantage of owning commercial real estate?

A) Quick turnaround time to free up capital when needed is an advantage of owning commercial real estate.
B) Limited equity investment while gaining leverage through financing is an advantage of owning commercial real estate.
C) Potential to recover capital through refinancing is an advantage of owning commercial real estate.
D) Potential for tax sheltering possibilities for the investor is an advantage of owning commercial real estate.

Solutions: