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PREX-1060A Exam Dumps : Exam 4: Invigilated Theory Exam

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Exam 4: Invigilated Theory Exam Questions and Answers

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Question 1

A salesperson, who is representing a tenant, has completed a comparative market analysis (CMA) of the management fees charged, assessed on a square footage basis, at the different office buildings that their client is interested in leasing. The management fees vary across the comparable office buildings, and the tenant is interested to know why there is a difference. Which of the following is an accurate statement the salesperson can make about the difference in management fees between the buildings?

Options:

A.

The salesperson should tell their client that higher management fees charged for a building always indicates that the tenant is getting superior service and value.

B.

The salesperson should explain that a tenant occupying a smaller rentable area in a building pays higher management fees per square foot compared to a tenant with an average or larger rentable area.

C.

The salesperson should identify the reasons for high management fees charged for a building and determine the relative value it provides.

D.

The salesperson should tell the tenant that the Condominium Authority of Ontario regulates management fees charged by buildings as per their size.

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Question 2

The balance sheet of a business helps investors understand its stability and assess financial risk. A balance sheet includes details about all of the following, EXCEPT:

Options:

A.

Shareholder’s equity

B.

Assets

C.

Liabilities

D.

Net operating income

Question 3

Which of the following statements about economic development offices is NOT correct?

Options:

A.

Economic development offices can provide you with real property information regarding tax assessments and how to appeal your real estate taxes.

B.

Economic development offices provide background information on local, provincial, and federal research and development incentives.

C.

Economic development offices have important resources for those seeking suitable commercial sites for business operations.

D.

Economic development offices can help guide development applications through municipal processes and streamline the approvals process for companies unfamiliar with regulatory requirements.

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