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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 is searching for properties on behalf of their retail buyer client for their designer eyewear and optical store. The buyer discusses their storage and product display needs with the salesperson. Which of the following is NOT a factor the buyer should consider regarding the product display and storage space of potential properties?

Options:

A.

The salesperson should advise the buyer to consider the price of their products.

B.

The salesperson should advise the buyer to consider the space they will need to allot for storage versus customer-facing product.

C.

The salesperson should advise the buyer to consider their business's predicted monthly inventory.

D.

The salesperson should advise the buyer to consider the size of their products.

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Question 2

Audited and unaudited statements provide the financial status of a business to potential buyers. What is the main difference between audited and unaudited financial statements?

Options:

A.

Unaudited financial statements are prepared by Chartered Professional Accountants; audited financial statements are prepared by senior Chartered Professional Accountants.

B.

Audited financial statements provide an accurate picture of the financial status of a business; unaudited financial statements may only contain partially reviewed information.

C.

Unaudited financial statements are prepared by accounting students; audited financial statements are completed by accountants who have received their professional designation.

D.

Audited financial statements comply with Generally Accepted Accounting Principles (GAAP); unaudited financial statements do not comply with GAAP.

Question 3

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?

Options:

A.

A clause to obtain the necessary mortgage amount

B.

A clause to test the quality of the underground water source

C.

A clause to check the condition of the trucks and vans

D.

A clause to ensure the truck parking spaces and turning radius are sufficient

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