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Hot Exam PREX-1060A Certification Cost | Professional PREX-1060A Online Exam: Exam 4: Invigilated Theory Exam
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Humber College Exam 4: Invigilated Theory Exam Sample Questions (Q37-Q42):
NEW QUESTION # 37
In regard to the adjusted book value/asset valuation method of valuing a business, which of the following is correct?
- A. The adjusted book value method should not be used when the sale of a business is being implemented or is under consideration.
- B. The adjusted book value method takes goodwill into account when establishing the value of a business.
- C. A company's adjusted book value should be equal to the actual market value of the business.
- D. A company's adjusted book value is entirely unrelated to its net worth.
Answer: B
NEW QUESTION # 38
A salesperson and their commercial seller client are discussing and preparing to list the seller's office building. The topic of defects comes up and the seller wants to know what the salesperson will have to disclose. Which of the following is an accurate statement regarding the disclosure of defects?
- A. The salesperson should discuss latent defects known to the seller of the office building with the seller and disclose them to a buyer.
- B. The salesperson should discuss patent defects known to the seller of the office building with the seller and disclose them to a buyer.
- C. The salesperson should not disclose material latent defects that are known to the seller that could reduce the price or the marketability of the property.
- D. The salesperson should not disclose latent defects that are known to the seller as they could affect the seller's ability to obtain a high price for the property.
Answer: A
NEW QUESTION # 39
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. The buyer must sign and date below the printed name of the corporation.
- B. A major shareholder of the company must sign and date over their printed name.
- C. 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.
- D. The general partner of the company must sign and date below the printed name of the limited company.
Answer: C
NEW QUESTION # 40
A salesperson must ensure that a buyer client is aware of all revenue sources and expenses related to the property they are interested in purchasing. Which of the following is an accurate statement regarding potential revenue sources for a commercial property?
- A. Shopping centres with more than 150 stores typically have only two types of rental revenues to cover all the operating expenses of the property: base rent and additional rent.
- B. Retail commercial property owners have three types of potential rental income: base rent, additional rent, and percentage rent.
- C. Every commercial property, whether an office building, an industrial property, a retail property, or land, has a single source of revenue, which is the base rent.
- D. Commercial office owners have only one type of potential rental income, which is percentage rent, as the owner themselves pay for the operating expenses of the property.
Answer: B
NEW QUESTION # 41
A buyer wants to purchase an industrial property for its international logistics and distribution center.
Currently, the building is used by a local courier company with small delivery trucks and vans. When drafting an offer to purchase this property, which of the following should be added regarding this change of use?
- A. A clause to test the quality of the underground water source
- B. A clause to ensure the truck parking spaces and turning radius are sufficient
- C. A clause to check the condition of the trucks and vans
- D. A clause to obtain the necessary mortgage amount
Answer: B
NEW QUESTION # 42
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