Chapter 5 – Real Estate Brokerage Activities

question

A Broker desires to keep an escrow account in an interest bearing account. Would this be legal?
answer

Yes, if all parties to the transaction agree, in writing that the funds will go into an interest bearing account and who is to receive the interest
question

A Broker took earnest money from a buyer. He deposited the money in the Trust account, but when his electric bill was due, the Broker deposited the buyer’s money into the Broker’s business account. This is referred to as
answer

Conversion
question

How long does a sales associate have to deliver earnest money to the Broker?
answer

immediately
question

What is required on a Broker’s entrance sign?
answer

The name of the Partnership as registered, the trade name if the firm operates under a trade name and the Broker’s name with the words Licensed Real Estate Broker
question

What must a Broker do with his Trust account?
answer

Reconcile monthly with a statement of any discrepancies
question

Broker Paul from ABC Realty and Broker Shawn from XYZ Realty meet to play golf at the country club. During their round of golf and at lunch, both discuss how the cost of business continues to rise. They agree that they should each increase their commission rates. This discussion is
answer

a violation of the Sherman Anti-Trust Act
question

A Corporation Sole cannot register with the Department to perform
answer

real estate services to the public
question

Entities that can register with the Department to perform real estate services to the public include
answer

a Sole Proprietor, a Corporation, and a Partnership
question

John, the actively licensed Broker in a Partnership, has had his licensed revoked. What will be the status of the sales associate license working for that partnership?
answer

involuntary inactive as the Partnership will be cancelled
question

Three Brokers get together and decide to form a Corporation to sell real estate. They want to call their company House of Brokers. Each Broker wishes to maintain contact with the public. What is necessary to do this?
answer

All three Brokers must be active Brokers, the Corporation and the trade name must be registered
question

Broker Sally wants to work out of a trailer at a new home site. She will negotiate deals here and do closings. What is true about this situation?
answer

Because Sally conducts closings and negotiations here, this would be considered a branch office and must be registered with the Florida Real Estate Commission
question

The principal statues affecting the investigative and litigation activities of the Antitrust Division are the
answer

Sherman and Clayton Acts
question

The _______ was enacted because Congress felt that consumers needed protection from unnecessarily high settlement charges caused by certain abusive practices that have developed in some areas of the country
answer

Real Estate Settlement Procedures Act
question

The federal government department, which regulates Fair Housing laws, Real Estate Settlement Procedures Act, and provides funds to states for housing needs is the
answer

Department of Housing and Urban Development
question

RESPA stands for
answer

Real Estate Settlement Procedures Act
question

A demand from the prospective tenant for the return of the fee, because of a rental list not being current or accurate, shall be made within ___ days following the day on which the real estate Broker or sales associate had contracted to perform services to the prospective tenant
answer

30
question

The ______ regulates Fair Housing laws, Real Estate Settlement Procedures Act, and provides funds to states for housing needs
answer

Department of Housing and Urban Development
question

The ______ regulates Fair Housing laws
answer

Department of Housing and Urban Development
question

The ______ regulates the Real Estate Settlement Procedures Act
answer

Department of Housing and Urban Development
question

The ______ provides funds to states for housing needs
answer

Department of Housing and Urban Development
question

The ______ regulates the Fair Housing laws
answer

Department of Housing and Urban Development
question

The Department of Housing and Urban Development regulates the
answer

Real Estate Settlement Procedures Act
question

Department of Housing and Urban Development provides funds to states for
answer

housing needs
question

A ______ is an entity designed basically to allow religious groups to operate without the strict formalities of the typical business Corporation
answer

Corporation Sole
question

The core activity of real estate Brokerage is the business of
answer

procuring a buyer, seller, tenant, or property on behalf of a client for the purpose of completing a transaction
question

In most cases, transactions require the assistance of a cooperating Broker from another Brokerage company acting as a
answer

Sub-Agent
question

Most listing agreements provide for Brokerage cooperation in the
answer

multiple listing clause
question

A transaction involving a cooperating Sub-Agent is called
answer

Co-Brokerage
question

In a Co-Brokered transaction, the listing Broker splits the commission with the Co-Broker, typically on a
answer

50 50 basis
question

A Broker may cooperate with other Brokers on either side of a transaction, either assisting a
answer

listing agent to locate a buyer or tenant, or assisting a buyer or tenant representative in locating a seller or landlord
question

In the most common form of Broker cooperation, an outside Broker locates a buyer for the
answer

listing Broker’s seller. In such cases, the listing Broker shares the commission with the cooperating selling Broker on a pre-determined basis
question

A Multiple Listing Service is an
answer

organization of Brokers who have agreed to cooperate with member Brokers in marketing listings
question

Members of a Multiple Listing Service agree to
answer

enter all exclusive listings into the listing distribution network so that every member is promptly informed of new listings as they come on the market
question

The listing agreement used by members of a Multiple Listing Service discloses
answer

relevant procedures and policies so that all principal parties to the agreement are aware of the pooling of the listing
question

A Broker who works on a transaction listed in the multi-listing service has all the duties and responsibilities inherent in the laws of agency as the
answer

Client’s fiduciary agent
question

To generate business, as well as achieve the transactional objectives of Clients, a Broker must be proficient in four areas. These areas are
answer

obtaining a Client listing, marketing a listing, facilitating the closing of a transaction,and managing market information
question

A Client hires a Broker by
answer

executing a listing agreement
question

Once a Broker is hired, the Broker or agent implements a
answer

marketing plan to procure the other principal party for the transaction
question

The Broker plays an important role in pre-closing activities to ensure
answer

successful closing of the transaction
question

To serve Clients and locate Customers, a Broker must become expert in the
answer

local real estate market conditions
question

A fundamental part of maintaining market expertise is
answer

organizing and managing an information system
question

It is common for Brokers and agents to specialize in a
answer

type of property, a type of transaction, or a geographical area
question

The distinction between Brokerage and trading for one’s own account is important for determining whether one must be
answer

licensed to perform the real estate activity in question
question

To be considered Brokerage, an agent’s activity must generally be conducted on behalf of a
answer

person or business entity other than the agent
question

Buying, selling, and leasing real estate for one’s own account or for one’s company are generally not considered
answer

Brokerage
question

Brokerage is distinct from the practice of rendering real estate Advisory Services. A licensed Broker acting as a consultant for a fee usually is not working to effect a
answer

particular transaction
question

When a licensed Brokers objective is acting as a consultant for a fee, it is not purely transaction oriented, therefore, the activity is not really
answer

Brokerage
question

An example of an Advisory Service is
answer

providing an estimate of value
question

An example of an Advisory Service is
answer

performing market analysis
question

An example of an Advisory Service is
answer

managing property
question

Even though fee consulting is not Brokerage in the strict sense, real estate consultants who offer Advisory Services to the public must have
answer

a real estate license in most states
question

Anyone who plans to obtain a real estate license should become familiar with the
answer

real estate license law of the relevant state
question

All business entities may own, buy, and sell their own real estate in varying degrees without
answer

violating license laws
question

A Sole Proprietorship is a business owned by a
answer

single individual
question

When the sole proprietor dies, the business
answer

terminates
question

Sole Proprietorships must follow state licensing and registration laws to conduct business, such as
answer

fictitious name laws
question

One distinguished characteristic of a Sole Proprietorship is
answer

liability. Sole proprietors are personally liable for their own debts and actions and those of employees while performing business duties. Proprietors may be sued personally
question

One distinguished characteristic of a Sole Proprietorship is
answer

taxation. business profits are taxed once as the proprietor’s personal income
question

A Sole Proprietorship may Broker real estate if
answer

properly licensed
question

A Corporation is a legal entity owned by
answer

Stockholders
question

A Corporation for Profit consists of
answer

one or more persons authorized to conduct business for profit
question

In a Corporation for Profit, a Board of Directors elected by Stockholders oversees the
answer

business
question

In a Corporation for Profit, officers (president, vice president, secretary, treasurer) and managers conduct
answer

day-to-day affairs
question

A distinguished characteristic of a Corporation for Profit is
answer

perpetual existence. The Corporation survives the death of any of the Stockholders, directors, or officers
question

A distinguished characteristic of a Corporation for Profit is
answer

formation. To incorporate, principal parties must complete and file Articles of Incorporation in accordance with state law
question

A distinguished characteristic of a Corporation for Profit is
answer

liability. Shareholders of the Corporation are only liable to the extent of the value of one’s shares; officers and directors may be held personally liable for the corporation’s actions under the Sarbanes Oxley Act of 2002
question

A distinguished characteristic of a Corporation for Profit is
answer

taxation. Owners are double-taxed on business profits. Corporate profits are taxed and after-tax dividends distributed to shareholders are taxed again as personal income
question

A Corporation may Broker real estate if
answer

it is legally authorized to do business in a state and licensed to Broker there
question

Shareholders may not
answer

Broker real estate for a Corporation
question

A Non-Profit Corporation is a Corporate entity which is not legally entitled to
answer

generate profit
question

A Board of Directors and Officers manage operations in a
answer

Non-Profit Corporation
question

A Board of Directors and Officers manage in a Non-Profit Corporation. This refers to
answer

Operations
question

Non-Profit organizations are not subject to
answer

taxation
question

A Non-Profit organization may not
answer

Broker real estate
question

A General Partnership is a
answer

For-Profit business consisting of two or more co-owners who have agreed to share business profits
question

Unlike a Corporation, the General Partnership is not a
answer

distinct, legal entity, although a Corporation may be a partner in a General Partnership
question

Unlike a Corporation, the General Partnership is not a
answer

distinct, legal entity, although a Corporation may be a partner in a General Partnership
question

Unlike a Corporation, the General Partnership is not a distinct, legal entity, although a Corporation may be a partner in a
answer

General Partnership
question

A distinguished characteristic of a General Partnership is
answer

formation. The Partnership is formed by a written or oral Partnership agreement with or without a financial investment by either partner
question

A distinguished characteristic of a General Partnership is
answer

dissolution. The Partnership may be terminated through mutual agreement, withdrawal, or death of a partner, or by legal action
question

A distinguished characteristic of a General Partnership is
answer

liability. All partners bear full liability for debts and obligations jointly and severally
question

A distinguished characteristic of a General Partnership is
answer

taxation. Partners are taxed once on their respective Partnership profits. Partnership do not have Double Taxation
question

A General Partnership may Broker real estate if
answer

properly licensed
question

State law may require one or all partners of a General Partnership to hold an
answer

active or inactive Broker’s licenses
question

A Limited Partnership consists of
answer

General Partners and Limited Partners
question

General partners are wholly responsible for
answer

business operations
question

Limited Partners are investors who participate only in
answer

business profits
question

General partners typically receive compensation for their
answer

management responsibilities
question

A limited partner must make an investment, which subsequently comprises the extent of
answer

the partner’s liability
question

Limited Partners are taxed
answer

once, on profits distributed by the Partnership
question

General Partners bear sole liability for
answer

debts and obligations
question

A Limited Partnership may Broker real estate. However, Limited Partners may not Broker real estate for the
answer

Partnership
question

State laws may require General Partners to have an
answer

active or inactive Broker’s licenses
question

Limited Partners need not be
answer

licensed for the Partnership to Broker real estate
question

A Joint Venture is a Partnership formed to complete a
answer

specific business endeavor, such as a real estate development
question

Individuals, General and Limited Partnerships, and Corporations may participate in a Joint Venture to complete a business endeavor. In forming the entity, the partners identify how they will
answer

conduct business and share profits
question

Principal parties in a Joint Venture, to complete a business endeavor, share liability, but may not obligate the other co- venturers to agreements outside of the
answer

Joint Venture project
question

A Joint Venture may Broker real estate, if
answer

the co-venturers are duly licensed
question

A Business Trust is a
answer

group of investors who invest in a pooled Trust fund managed by their elected Trustee
question

In a Business Trust, the Trustee purchases investment assets and distributes profits and gains to the
answer

Trustors
question

A Business Trust that invests primarily in real estate and meets certain other requirements is a ______ and receives special tax treatment
answer

Real Estate Investment Trust (REIT)
question

A Business Trust may not Broker real estate , but it may
answer

buy and sell its own real estate assets
question

A Cooperative Association is a
answer

Non-Profit, tax-exempt alliance of individuals or companies formed to promote common goods or services
question

A Cooperative Association may Not
answer

Broker real estate
question

A Sole Proprietorship, Partnership, Corporation, or Joint Venture Brokerage may be
answer

independent or affiliated
question

A Sole Proprietorship, Partnership, Corporation, or Joint Venture Brokerage may be
answer

specialized in a type of property
question

A Sole Proprietorship, Partnership, Corporation, or Joint Venture Brokerage may be
answer

specialized in a type of transaction
question

A Sole Proprietorship, Partnership, Corporation, or Joint Venture Brokerage may be
answer

specialized in a type of Client
question

A Brokerage in a Sole Proprietorship, Partnership, Corporation, or Joint Venture that is not affiliated with a Franchise is an
answer

independent agency
question

Many independent agencies of a Sole Proprietorship, Partnership, Corporation, or Joint Venture participate in networks on a local, regional, or national basis. Such networks expose the independent Broker to
answer

a larger market without compromising individual identity
question

A Franchised Brokerage is
answer

an independently owned company that enters into a licensing arrangement with a Franchisor to participate in various benefits offered in exchange for compensation
question

Brokerage Franchisors generally offer
answer

local Franchisees
question

Brokerage Franchisors generally offer
answer

the use of a recognized trade name
question

Brokerage Franchisors generally offer
answer

national and regional advertising
question

Brokerage Franchisors generally offer
answer

training programs
question

Brokerage Franchisors generally offer
answer

standardized operating procedures
question

Brokerage Franchisors generally offer
answer

a national referral system
question

A Franchisee pays the Franchisor
answer

start up fees and a portion of gross income
question

Many Brokerages deal primarily with limited types of property such as
answer

residential, commercial, industrial, undeveloped land, etc.
question

Most residential Brokerage companies conduct a small amount of commercial Brokerage, while commercial Brokerages tend to deal strictly with
answer

retail, office, industrial, or land properties
question

A large Brokerage company may handle all types of properties but will probably have a separate organizational division for each
answer

property type
question

Brokerages often organize around a
answer

particular type of transaction
question

There are Brokerage companies that specialize in
answer

apartment rentals, office rentals, exchanges, Business Brokerage, and, most commonly, residential sales
question

Brokerage companies sometimes specialize by choosing to represent only
answer

one side in a transaction
question

A Brokerage company may choose to represent only
answer

commercial tenants, or only residential buyers, or some other limited type of Client
question

Only a Broker with an active Broker’s license can hire and employ a licensed
answer

Salesperson
question

A licensed Salesperson may work only for
answer

the employing Broker and may not work for or receive direct compensation from any other Broker
question

State real estate license laws provide for two distinct licenses to conduct real estate Brokerage. These are
answer

the Broker license and the Salesperson or Sales Agent license
question

A licensed real estate Broker is duly authorized to
answer

represent Clients directly in Brokering real estate
question

A Sales Agent, is only authorized to represent a
answer

Broker and carry out such duties as the Broker may legitimately delegate
question

A Sales Agent does not directly represent the
answer

Client in a transaction but is rather the Agent of the Broker and Sub-Agent of the Client
question

A Sales Agent is a
answer

fiduciary of the employing Broker
question

As Agent of a Broker, a Salesperson may
answer

offer properties for sale or lease, procure buyers, negotiate transaction terms, and otherwise conduct the business of Brokerage
question

A Sales Agent must act entirely on
answer

the Broker’s behalf
question

A Salesperson may not
answer

bind a Client to any contract
question

A Salesperson may not
answer

receive compensation directly from a client
question

A Salesperson may not
answer

accept a listing or deposit that is not in the name of the Broker
question

A Broker may hire a Sales Agent as an
answer

Independent Contractor (IC) or as an employee
question

A Broker may hire a Sales Agent as an Independent Contractor (IC) or as an
answer

employee
question

The Broker is responsible and liable for
answer

a Sales Agent’s actions
question

A Broker has limited control over the actions of
answer

an Independent Contractor
question

A Broker has limited control over the actions of an Independent Contractor, specifically, a Broker can require performance results, but is limited in demanding how a contractor performs the work. For example,
answer

a Broker may not prescribe selling methods, meeting attendance, or office hours
question

A Broker has limited control over the actions of an Independent Contractor, specifically,
answer

an Independent Contractor is responsible for income and social security taxes, The Broker does not withhold taxes
question

A Broker has limited control over the actions of an Independent Contractor, specifically,
answer

a Broker cannot provide an Independent Contractor with employee benefits such as health insurance or pension plans
question

A Broker has greater control over the actions of an employee. Specifically,
answer

a Broker can impose a sales methodology. In addition, a Broker can enforce all office policies, including hours, meeting attendance, and telephone coverage
question

A Broker has greater control over the actions of an employee. Specifically,
answer

a Broker must withhold income taxes and pay unemployment compensation tax on behalf of an employee
question

A Broker has greater control over the actions of an employee. Specifically,
answer

an employee may receive the benefits enjoyed by the Broker’s non-selling employees
question

A written agreement between a Broker and employee or Independent Contractor should clearly state
answer

each party’s duties and responsibilities to the other
question

A written agreement between a Broker and employee or Independent Contractor should clearly state each party’s duties and responsibilities to the other. In addition, the agreement should clarify
answer

the agent’s compensation program as well as who is to pay for incidental business expenses
question

In accepting employment from a Broker, a Salesperson generally makes a commitment to
answer

work diligently to sell the Broker’s listings
question

In accepting employment from a Broker, a Salesperson generally makes a commitment to
answer

work diligently to procure new listings
question

In accepting employment from a Broker, a Salesperson generally makes a commitment to
answer

promote the business reputation of the broker
question

In accepting employment from a Broker, a Salesperson generally makes a commitment to
answer

abide by the Broker’s established policies
question

In accepting employment from a Broker, a Salesperson generally makes a commitment to
answer

fulfill the fiduciary duties owed Clients as their Sub-Agent
question

In accepting employment from a Broker, a Salesperson generally makes a commitment to
answer

maintain insurance policies as required by the Broker
question

In accepting employment from a Broker, a Salesperson generally makes a commitment to
answer

have transportation for conducting business, as required by the Broker
question

In accepting employment from a Broker, a Salesperson generally makes a commitment to
answer

conform to ethical standards imposed by the Broker and trade organization
question

In accepting employment from a Broker, a Salesperson generally makes a commitment to
answer

uphold all covenants and provisions of the employment agreement
question

In employing a Salesperson, a Broker generally makes a commitment to
answer

make the Brokerage’s market and property data available
question

In employing a Salesperson, a Broker generally makes a commitment to
answer

provide whatever training was promised at the time of hiring
question

In employing a Salesperson, a Broker generally makes a commitment to
answer

provide whatever office support was promised at the time of hiring
question

In employing a Salesperson, a Broker generally makes a commitment to
answer

uphold the commission structure and expense reimbursement policy
question

In employing a Salesperson, a Broker generally makes a commitment to
answer

conform to ethical standards imposed by the Broker’s trade organization
question

In employing a Salesperson, a Broker generally makes a commitment to
answer

uphold all covenants and provisions of the employment agreement
question

An agent employee of a Broker may receive
answer

wages, salary, additional commissions, expense reimbursements, and benefit plans
question

An Independent Contractor’s compensation is normally a
answer

combination of commissions and free office support
question

Most Sales Agents work as
answer

Independent Contractors who earn a commission
question

A Sales Agent earns compensation for
answer

procuring listings and for procuring buyers or tenants, whenever a transaction results
question

In the jargon of Brokerage, these are the two sides to a commission, they are the
answer

listing side and the selling side
question

An agent who procures a listing receives a share of the Broker’s listing side commission, according to the
answer

agent’s commission schedule
question

An agent who sells a listing, by finding the Customer, receives a share of the Broker’s selling side of the commission, according to the
answer

commission schedule
question

An agent who procures both listing and Customer receives a share of the
answer

Broker’s listing side commission and selling side commission
question

An agent’s commission schedule is a comprehensive summary of commission splits under various circumstances that include the
answer

listing and selling side
question

An agent’s commission schedule is a comprehensive summary of commission splits under various circumstances that include
answer

Salesperson’s level of sales performance
question

An agent’s commission schedule is a comprehensive summary of commission splits under various circumstances that include
answer

Broker’s level of expense reimbursement to agent
question

An agent’s commission schedule is a comprehensive summary of commission splits under various circumstances that include
answer

the particular policies or organization of the agency
question

An agent’s commission schedule is a
answer

comprehensive summary of commission splits under various circumstances that include commission splits in the market
question

Listings are
answer

the traditional source of a Broker’s income
question

By obtaining a listing, a Broker obtains a share of the commission generated whenever a cooperating Broker finds
answer

a buyer
question

In the absence of an ______ agreement, a buyer may move from one agent to another without making any commitment
answer

Exclusive Buyer Representation
question

Agents can spend considerable time with a buyer and earn nothing. The special value of a listing is likely to generate
answer

revenue
question

The marketing and self-promotional efforts of agents generate
answer

listings
question

New agents usually focus on becoming well known in a small geographical area and hope to encounter Clients there who are willing to
answer

list with them
question

Prospecting is
answer

any activity designed to generate listing prospects parties who intend to sell or lease property and who have not yet committed to a Broker
question

Prospecting activities include
answer

mailing newsletters and flyers, selling directly, and person-to-person, advertising, and selling indirectly by community involvement
question

The goal of prospecting is to
answer

reach a potential seller or landlord, make that person aware of the agent’s and Brokerage’s services, and obtain permission to discuss the benefits of a listing, often in the form of a formal selling presentation
question

It is almost always necessary for an agent seeking a listing to suggest a
answer

listing price or price range for the property
question

It is important for an agent that is seeking a listing to make a careful estimate of a property value because
answer

underpricing a property is not in the best interests of the seller, and overpricing it often prevents a transaction altogether
question

An agent, when making an estimate of a property value, usually relies on
answer

an analysis of comparable properties which have recently sold in the same neighborhood
question

When an agent is making an estimate of value on a property, using the comparable property approach, the agent makes adjustments for the differences between the subject property and the comparable, then the agent arrives at a
answer

general price range
question

When an agent is making an estimate of value on a property, agents must be careful to caution sellers that they are not appraisers, and that the suggested price range is not an
answer

expert opinion of market value
question

When an agent is making an estimate of value on a property, agents must be careful to caution sellers that they are not appraisers, and that the suggested price range is not an expert opinion of market value. If a more precise estimate of market value is desired, the seller should hire a
answer

licensed appraiser
question

A listing presentation is an agent’s opportunity to meet with a seller and present the merits of the agent’s
answer

marketing plan, personal expertise, and company strengths
question

A listing presentation is an agent’s opportunity to meet with a seller and present the merits of the agent’s marketing plan, personal expertise, and company strengths. At the same time, an agent can explain the many phases and details of a real estate transaction and point out
answer

how the provisions of the listing agreement and the agent-principal relationship work to ensure a smooth transaction
question

Ultimately, an agent’s aim in a presentation meeting is to have a principal execute a listing agreement. The agent must then submit the listing to the Broker for approval and signing. This result will set in motion the
answer

process of marketing the property
question

The process of marketing a listed property occurs in three broad steps, leading to the
answer

desired end of a completed sale contract. At each of these steps, there are critical skills an agent must master
question

The process of marketing a listed property occurs in three broad steps, leading to the desired end of a completed sale contract. At each of these steps, there are critical skills an agent must master. The three steps are
answer

a marketing plan, selling the prospect, and obtaining offers
question

After a Broker formalizes a listing agreement, the Sales Agent initiates a
answer

marketing plan for the property
question

An ideal marketing plan that a Sales Agent can initiate after formalizing a listing agreement is a
answer

combination of promotional and selling activities directed at potential Customers
question

The best combination of promotional and selling activities directed at potential Customers is one that aims to have maximum impact on the marketplace in relation to
answer

the time and money expended
question

When marketing activities produce prospects, the agent’s marketing role becomes more interpersonal. An agent must now
answer

qualify prospects plans, preferences, and financial capabilities
question

When marketing activities produce prospects, the agent’s marketing role becomes more interpersonal. An agent must now
answer

show properties that meet the Customer’s needs
question

When marketing activities produce prospects, the agent’s marketing role becomes more interpersonal. An agent must now
answer

elicit the buyer’s reactions to properties
question

When marketing activities produce prospects, the agent’s marketing role becomes more interpersonal. An agent must now
answer

report material results to the seller or listing agent
question

At the earliest appropriate time, an agent must
answer

make certain disclosures to a prospective Customer
question

Depending on state laws, an agent may have to disclose
answer

the relevant agency relationship, the property’s physical condition, and the possible presence of hazardous materials
question

If a buyer is interested in purchasing a property, an agent obtains the buyer’s
answer

offer of transaction terms, including price, down payment, desired closing date, and financing requirements
question

An agent must be extremely careful to abide by fiduciary obligations to the Client. Discussions of price are particularly delicate, whether the Client is a buyer or seller. The agent’s duty is to uphold the Client’s
answer

best interests
question

It is not acceptable for an agent to suggest to a Customer what price the Client
answer

will or will not accept
question

With pricing and other issues, it is always a good practice to understand what role the Client wants the agent to assume in the offering phase of the transaction. In other words,
answer

exactly how far the agent may go in developing terms on the Client’s behalf
question

When a buyer or tenant makes an offer, the agent must present it to the seller or landlord at the earliest possible moment. If the terms of the offer are unacceptable, the agent may
answer

assist the seller in developing a counteroffer, which the agent would subsequently submit to the Customer or Customer’s agent
question

The offering and counter offering process, in a sale contract, continues until
answer

a meeting of the minds results
question

Between the execution of the sale contract and the closing of the transaction, the property is
answer

under contract or contract pending. During this period, buyer and seller have certain things to do to achieve a successful closing. The buyer often needs to arrange financing and dispose of other property. The seller may need to clear up title encumbrances and make certain property repairs. The sale contract should specify all such required tasks
question

The time period between contracting and closing is referred to as the
answer

contingency period, or pre-closing period
question

As dictated by custom and the circumstances of a transaction, an agent has a range of
answer

duties and responsibilities during the pre-closing period
question

An agent’s foremost duty following acceptance of an offer is to
answer

submit the contract and the earnest money to the employing Broker without delay
question

Most states impose deadlines for an agent to submit the contract and the earnest money to the
answer

employing Broker. This requirement, is usually within twenty-four hours from the agent’s receipt of the deposit
question

One of an agent’s foremost duties following acceptance of an offer is
answer

assisting the buyer in obtaining financing
question

One of an agent’s foremost duties following acceptance of an offer is
answer

assisting the seller in clearing title
question

One of an agent’s foremost duties following acceptance of an offer is
answer

assisting the seller in completing property repairs
question

One of an agent’s foremost duties following acceptance of an offer is
answer

recommend inspectors, appraisers, attorneys, and title companies
question

One of an agent’s foremost duties following acceptance of an offer is
answer

assisting in communications between principals
question

One of an agent’s foremost duties following acceptance of an offer is
answer

assisting in the exchange of transaction documents
question

The listing Broker has the primary responsibility for
answer

handling deposit monies
question

The listing Broker has the primary responsibility for overseeing the agent’s
answer

pre-closing activities
question

State license laws require that earnest money deposits be placed in an account which is separate from the
answer

Broker’s operating accounts
question

State license laws require that
answer

a Broker keep accurate records and follow accepted accounting procedures
question

A Broker must be careful to avoid two common violations of escrow regulations. They are
answer

Commingling and Conversion
question

Commingling is the act of
answer

mixing the Broker’s personal or business funds with escrow funds
question

Commingling is the
answer

failure to deposit earnest money into escrow in a timely manner
question

Conversion is the act of
answer

misappropriating escrow funds for the Broker’s business or personal use
question

Conversion carries serious consequences, including
answer

license revocation
question

The ability to satisfy the needs of Clients and Customers is largely dependent on a Broker’s ability to
answer

obtain, organize, and manage information
question

Information is the Broker’s
answer

perceived value in the marketplace and a major reason why buyers and sellers seek a Broker out
question

Systematic means
answer

having, showing, or involving a system, method, or plan
question

Systematic collection and updating of relevant information is a business
answer

priority
question

Most Brokerages maintain two categories of property data, they are
answer

available properties and all properties in the market area
question

In residential Brokerage, available property basically consists of
answer

the listings in the multi-listing service and For Sale By Owner properties
question

Records for all properties in an area are accessible in
answer

tax records
question

Commercial Brokerages usually keep track of available and occupied commercial properties in a
answer

proprietary database
question

Buyers information is usually
answer

compiled and maintained, often informally, by each agent in a Brokerage
question

An agency’s base of prospects who are looking for property at any given time is valuable for
answer

marketing new listings
question

In residential and commercial leasing companies, information is compiled and maintained on all tenants in an area, by property type used. Such files contain
answer

a tenant’s lease expiration, property size, and rent
question

It is important to keep track of both
answer

current and former Clients
question

Former Clients are likely prospects to become
answer

Clients again or Customers
question

Former Clients are a source of
answer

referrals
question

Current Clients should be the Broker’s
answer

primary concern
question

Knowing a real estate market includes keeping up to date on
answer

pricing and appreciation trends
question

Knowing a real estate market includes keeping up to date on
answer

financing rates and terms
question

Knowing a real estate market includes keeping up to date on
answer

demographic patterns and trends
question

Knowing a real estate market includes keeping up to date on
answer

construction trends
question

Knowing a real estate market includes keeping up to date on
answer

general economic trends
question

A well managed Brokerage relies on a written policy manual to
answer

keep the business running smoothly and professionally
question

A policy manual sets forth
answer

company rules, regulations, and policies
question

Advertising is an important tool in marketing properties and procuring buyers. It is, however, subject to
answer

regulation and restrictions
question

State laws and regulations require that advertising must not be
answer

misleading
question

The Broker of a real estate business is responsible for
answer

the content of advertising done by agents
question

All advertising regarding a real estate business must reveal the
answer

identity of the Broker
question

Licensed Brokers and agents of a real estate business may not use blind ads that conceal
answer

their identities
question

Brokers selling their own property through the Brokerage must disclose
answer

the Brokerage identity
question

Salespersons must include the Broker’s business identity in all aspects of
answer

advertising
question

Salespersons of a real estate firm may not
answer

advertise in their own name solely (unless selling their own property through channels other than the agency)
question

Brokerage companies, like other businesses, are subject to ______ designed to prevent monopolies and unfair Trade practices
answer

Anti-Trust Laws
question

Sherman Antitrust Act was enacted in
answer

1890
question

The ______ prohibits restraint of interstate and foreign trade by conspiracy, monopolistic practice, and certain forms of business combinations, or mergers
answer

Sherman Antitrust Act
question

The ______ empowers the federal government to proceed against Antitrust violators
answer

Sherman Antitrust Act
question

The Clayton Antitrust Act was enacted in
answer

1914
question

The Clayton Antitrust Act reinforces and broadens the provisions of the
answer

Sherman Antitrust Act
question

Among the ______ prohibitions are certain exclusive contracts, predatory price cutting to eliminate competitors, and inter-related Boards of Directors and Stock Holdings between same-industry Corporations
answer

Clayton Antitrust Act
question

The ______ also legalizes certain labor strikes, picketing, and boycotts
answer

Clayton Antitrust Act
question

The Clayton Antitrust Act also legalizes certain
answer

labor strikes, picketing, and boycotts
question

The effect of ______ is to prohibit trade practice and trade restraints that unfairly disadvantage open competition
answer

Antitrust Legislation
question

The effect of ______ is to prohibit trade practice and trade restraints that unfairly disadvantage open competition
answer

Antitrust Legislation
question

The effect of ______ is to prohibit trade practice and trade restraints that unfairly disadvantage open competition
answer

Antitrust Legislation
question

The effect of ______ is to prohibit trade practice and trade restraints that unfairly disadvantage open competition
answer

Antitrust Legislation
question

Business practices and behaviors which violate Antitrust laws include
answer

collusion, price fixing, market allocation, bid rigging, restricting market entry, exclusive dealing, and predatory pricing
question

One of the business practices and behaviors that violate Antitrust laws is
answer

predatory pricing
question

One of the business practices and behaviors that violate Antitrust laws is
answer

exclusive dealing
question

One of the business practices and behaviors that violate Antitrust laws is
answer

collusion
question

One of the business practices and behaviors that violate Antitrust laws is
answer

price fixing
question

One of the business practices and behaviors that violate Antitrust laws is
answer

market allocation
question

One of the business practices and behaviors that violate Antitrust laws is
answer

bid rigging
question

One of the business practices and behaviors that violate Antitrust laws is
answer

restricting market entry
question

Collusion is
answer

the illegal practice of two or more businesses joining forces or making joint decisions which have the effect of putting another business at a competitive disadvantage
question

Businesses may not collude to fix prices, allocate markets, create monopolies, or otherwise interfere with
answer

Free Market Operations
question

Price Fixing is
answer

the practice of two or more Brokers agreeing to charge certain commission rates or fees for their services, regardless of market conditions or competitors. In essence, such pricing avoids and disturbs the dynamics of a free open market
question

Example of Price Fixing
answer

The two largest Brokerages in a market jointly decide to cut commission rates by 50% in order to draw Clients away from competitors. The cut-rate pricing could destroy smaller agencies that lack the staying power of the large companies
question

Market Allocation is
answer

the practice of colluding to restrict competitive activity in portions of a market in exchange for a reciprocal restriction from a competitor. We won’t compete against you here if you won’t compete against us there
question

Example of Market allocation
answer

Broker A agrees to trade only in single family re-sales, provided that Broker B agrees to focus exclusively on apartment rentals and condominium sales. The net effect is an illegally restricted market where collusion and monopoly supplant market forces
question

Violations of Fair Trade and Anti-Trust laws may be treated as felonies, and penalties can be substantial. Loss of one’s license is also at stake. Brokers are well advised to
answer

understand and recognize these laws
question

Business Brokerage is
answer

effecting a sale or exchange of an existing business
question

In most cases, the sale of a business entails the simultaneous transfer of
answer

an estate in land, whether a leasehold or a fee
question

To sell businesses, a Broker must generally hold a
answer

real estate license
question

In some states, Business Brokerage is classified into Opportunity Brokerage and Enterprise Brokerage in accordance with
answer

the size of the business being sold
question

Opportunity Brokerage concerns a small business, usually a proprietorship or Partnership, where the transaction consists of a
answer

sale of assets and an assignment of a lease
question

Opportunity Brokerage concerns a small business, usually a
answer

Proprietorship or Partnership, where the transaction consists of a sale of assets and an assignment of a lease
question

Enterprise Brokerage concerns a
answer

larger company, usually a Corporation, where the transaction involves the sale of Stock and multiple real estate parcels leased or owned by the seller
question

Enterprise Brokerage concerns a larger company, usually a Corporation, where the transaction involves
answer

the sale of Stock and multiple real estate parcels leased or owned by the seller
question

The process of Business Brokerage is similar to
answer

real estate Brokerage
question

A Broker secures a listing, procures a purchaser, and facilitates the closing. Once a ready, willing, and able buyer is found, the Broker earns
answer

a commission
question

The critical difference between selling a business and selling real estate is that
answer

selling a business includes the transfer of business income, personal property assets, and, possibly, liabilities, in addition to real property
question

To be competent in the Brokerage specialty of selling a business, a Business Broker must have specialized skills concerning
answer

transactions, accountiing, and pricing
question

To be competent in the Brokerage specialty of selling a business, one thing that a Business Broker must have specialized skills in are
answer

transactions
question

To be competent in the Brokerage specialty of selling a business, one thing that a Business Broker must have specialized skills in is
answer

accounting
question

To be competent in the Brokerage specialty of selling a business, one thing that a Business Broker must have specialized skills in is
answer

pricing
question

A Business Broker must rely on a professional team to complete a transaction. Members of this team would include
answer

the Client’s legal counsel, accountant, and, preferably, a professional appraiser
question

A Business Broker must rely on a professional team to complete a transaction. Members of this team would include
answer

the Client’s legal counsel
question

A Business Broker must rely on a professional team to complete a transaction. Members of this team would include an
answer

accountant
question

A Business Broker must rely on a professional team to complete a transaction. Members of this team would include preferably, a
answer

professional appraiser
question

There are generally two types of business sale transaction for a Business Broker to be aware of. These are the
answer

Asset Sale and Stock Sale
question

In an Asset Sale, the purchaser takes possession of
answer

some or all of the assets of the business, as well as the real estate, in exchange for the sale price. The purchase usually does not include acquiring the existing business entity or its liabilities
question

An Asset Sale is preferred by buyers who want to
answer

buy only portions of a business, or to avoid liabilities inherent in a Stock purchase
question

In a ______, a purchaser acquires complete ownership of a business, including the legal Corporate entity, all assets, all financial liabilities, and any current or future legal liabilities arising from incidents that have occurred prior to the sale
answer

Stock Sale
question

In a Stock Sale, a purchaser may prefer a Stock Sale to avoid
answer

creating a new business entity or to benefit from a possible tax advantage
question

A purchaser may prefer a Stock Sale to avoid
answer

creating a new business entity or to benefit from a possible tax advantage
question

A purchaser may prefer a Stock Sale to avoid creating a new business entity or to benefit from a
answer

possible tax advantage
question

One of the most common transaction documents in Business Brokerage is a
answer

sale contract, an assignment or real estate sale contract, a No-Compete Agreement, and a Consulting Agreement
question

One of the most common transaction documents in Business Brokerage is a
answer

sale contract
question

One of the most common transaction documents in Business Brokerage is an
answer

assignment or real estate sale contract
question

One of the most common transaction documents in Business Brokerage is a
answer

No-Compete Agreement
question

One of the most common transaction documents in business Brokerage is an
answer

Consulting Agreement
question

A sale contract sets forth
answer

all terms and conditions of the agreement, including exactly what is being sold
question

An assignment or real estate sale agreement is
answer

an agreement for transferring any and all real property involved in the transaction
question

A No-Compete Agreement is
answer

a term used in contract law under which one party (usually an employee) agrees not to enter into or start a similar profession or trade in competition against another party (usually the employer)
question

A Consulting Agreement is
answer

an employment agreement that hires the seller to assist the buyer in taking over business operations
question

For the most part, transaction documents in Business Brokerage are not fully standardized. For that reason, a Business Broker must exercise caution in dealing with document language so as to avoid the
answer

unauthorized practice of law
question

A Broker or agent who wants to undertake Business Brokerage needs basic proficiency in accounting. In particular, one must know how to
answer

read and interpret income, expenses, and profit on an income statement
question

A business’s profit is
answer

the revenue remaining from gross income after all expenses have been paid
question

A Business Broker must evaluate an owner’s income and expenses in order to determine
answer

what the business may be worth to a buyer
question

Determining what a business may be worth involves interpreting which income and expense items will change after the business is sold. For example,
answer

a seller owns a grocery store and uses family members to perform clerical work without pay. If a buyer is a bachelor without children, much of the clerical work will have to be hired out. The additional payroll suddenly changes the store’s profitability significantly. Neglecting to consider how income and expenses might change is likely to lead to serious problems in working with buyers
question

The assets of a business include
answer

tangible assets and intangible assets
question

Tangible assets include
answer

cash and marketable Securities
question

Tangible assets include
answer

inventory
question

Tangible assets include
answer

trade fixtures and equipment
question

Tangible assets include
answer

real property
question

Tangible assets include
answer

accounts receivable
question

Intangible assets include
answer

the company name
question

Intangible assets include
answer

trademarks
question

Intangible assets include
answer

copyrights
question

Intangible assets include
answer

licenses
question

Intangible assets include
answer

contracts for future sales of goods or services
question

Intangible assets include
answer

goodwill
question

In valuing a business, both tangible and intangible assets must be taken into account, even though
answer

intangible assets may be very difficult to appraise
question

In valuing a business, both tangible and intangible assets must be taken into account, even though
answer

intangible assets may be very difficult to appraise
question

In valuing a business, both tangible and intangible assets must be taken into account, even though intangible assets may be very difficult to
answer

appraise
question

Tangible means
answer

something you can see and touch
question

Intangible means
answer

unable to be touched or grasped. Not having physical presence
question

Business liabilities acquired in a Corporate Stock Sale include
answer

short-term debt, such as accounts payable
question

Business liabilities acquired in a Corporate Stock Sale include long-term liabilities, such as, such as
answer

mortgages and leases
question

Business liabilities acquired in a Corporate Stock sale include short-term debt, such as accounts payable, and long-term liabilities, such as
answer

mortgages and leases
question

One sense of Goodwill is an intangible asset consisting of any factor that an owner values in the business, apart from any other specific asset. For example,
answer

goodwill might include reputation, a long history of success in a market, name recognition, a dominant market share, and an excellent business location
question

The most difficult task for a Business Broker is often finding the
answer

proper price range for a business. An owner of a smaller business has probably built the business from scratch and tends to overvalue it. Moreover, such an owner may have incomplete and disorganized accounting records, making the valuation of assets quite difficult
question

A business’s true income may be different for one owner than it would be for another because of
answer

variations in management style and ability
question

One of the values of a business is the function of
answer

past, present, and future net profits, and capitalized value of these
question

One of the values of a business is the function of
answer

amount of risk and certainty associated with realizing future profits
question

One of the values of a business is the function of
answer

value of all assets as reflected in the books of account
question

One of the values of a business is the function of
answer

impact of goodwill on the value of the business
question

One of the values of a business is the function of
answer

prices paid for similar businesses
question

One of the values of a business is the function of
answer

all other risks associated with the business
question

A Business Broker generally must have an active real estate license. In addition, the Broker may need to have a
answer

valid Securities license since a transaction may entail the sale of Securities
question

The ______ regulates the sale of personal property on a state-by-state basis, and forms the basis for standardized sale documents. Standard documents include promissory notes, security agreements, and bills of sale
answer

Uniform Commercial Code (UCC)
question

The Uniform Commercial Code regulates the sale of personal property on a state-by-state basis, and forms the basis for standardized sale documents. Standard documents include
answer

promissory notes, security agreements, and bills of sale
question

The ______ protects creditors against loss of collateral in an indebted business through the undisclosed sale of the business inventory
answer

Bulk Sales Act
question

The Bulk Sales Act protects creditors against loss of
answer

collateral in an indebted business through the undisclosed sale of the business inventory
question

The Bulk Sales Act protects creditors against loss of collateral in an indebted business through the undisclosed sale of the
answer

business inventory
question

With regard to the Bulk Sales Act, if a business sells over half of its inventory to a buyer, the Bulk Sales Act declares that
answer

the sale is a bulk sale, and, as such, is potentially an Asset Sale. Since a creditor could lose Security in such a sale, the seller must disclose the names of creditors to the buyer in a Bulk Sales Affidavit. The buyer must notify the creditors of the sale, who may then take appropriate action to secure their loans
question

With regard to the Bulk Sales Act, if a business sells over half of its inventory to a buyer, the Act declares that the sale is a bulk sale, and, as such, is potentially an Asset Sale. Since a creditor could lose Security in such a sale, the seller must disclose the names of creditors to the buyer in a
answer

Bulk Sales Affidavit. The buyer must notify the creditors of the sale, who may then take appropriate action to secure their loans
question

With regard to the Bulk Sales Act, if a business sells over half of its inventory to a buyer, the Act declares that the sale is a bulk sale, and, as such, is potentially an asset sale. Since a creditor could lose Security in such a sale, the seller must disclose the names of creditors to the buyer in a Bulk Sales Affidavit. The buyer must notify
answer

the creditors of the sale, who may then take appropriate action to secure their loans
question

A real estate Syndication is
answer

a form of investment in which two or more investors contribute capital to a pool for the purpose of acquiring, managing, and selling an investment property for a profit
question

There are two groups of parties in a Syndication. They are the
answer

Syndicator and the investors
question

In a Syndication, the Syndicator is the organizer and usually the party who provides the expertise to undertake the acquisition, management, and sale of the property. The investors role is to
answer

provide funds. Investors in a Syndication have little or no role in managing the investment
question

Participants in a Syndication may be any legal entity. For example,
answer

Corporations, Partnerships, individuals, and Joint Ventures
question

Most often, a Syndication is structured as a
answer

Limited Partnership
question

The primary benefit of a Syndication is that
answer

investors can participate and profit in a venture that would otherwise be beyond their individual financial and managerial capabilities
question

Financial benefits of a Syndication include
answer

income, appreciation, and possible passive loss tax deductions resulting from depreciation
question

One of the financial benefits of a Syndication is
answer

income
question

One of the financial benefits of a Syndication is
answer

possible passive loss tax deductions resulting from depreciation
question

One of the financial benefits of a Syndication is
answer

appreciation
question

The Federal Securities Act of 1933 defined Participation in a Limited Partnership as a
answer

Security, since investors expect to make a profit from a common enterprise without direct control over the marketing and managing of the investment
question

The Federal Securities Act of 1933 defined Participation in a Limited Partnership as a Security, since investors expect to make a profit from a common enterprise without
answer

direct control over the marketing and managing of the investment
question

Since the sale of shares in a Syndication represents a sale of Securities, Syndicators and real estate Brokers must
answer

comply with federal and state Securities licensing and registration laws
question

The primary federal law outlining Securities registration and licensing is the
answer

Federal Securities Exchange Act of 1934
question

The ______ law requires that any person selling Securities must be registered, or licensed, with the Securities and Exchange Commission
answer

Federal Securities Exchange Act of 1934
question

DPP stands for
answer

Direct Participation Program
question

NASD stands for
answer

National Association of Securities Dealers
question

At present, all Securities dealers must register with the National Association of Securities Dealers, including
answer

real estate Brokers wishing to sell Syndication Participations
question

Depending on the type of Security in question, the National Association of Securities Dealers issues a variety of licenses authorizing a dealer to
answer

market and sell the Security
question

In 1980, the National Association of Securities Dealers created a limited Securities license exclusively for persons selling real estate Syndications and other similar investment programs. The license is called
answer

the Direct Participation Program license (DPP license)
question

One of the two levels of a Direct Participation Program license is for principals of a Syndication. The Direct Participation Program limited the Principal License by
answer

appropriate examinations and National Association of Securities Dealers (NASD) application forms
question

Real estate Syndications are subject to strict disclosure requirements imposed by the
answer

Securities and Exchange Commission
question

Real estate Syndications disclosure requirements are in the form of a
answer

Prospectus for the investment program
question

A Prospectus is a
answer

comprehensive summary of all facts relating to the investment. The Prospectus also expressly warns investors that there are risks and uncertainties associated with the investment
question

A Prospectus is a comprehensive summary of all facts relating to the investment. The Prospectus also expressly warns investors that
answer

there are risks and uncertainties associated with the investment
question

A Prospectus is a comprehensive summary of all facts relating to the investment. The Prospectus also expressly warns investors that there are
answer

risks and uncertainties associated with the investment
question

SEC stands for
answer

Securities and Exchange Commission
question

Certain Syndications must be registered with the Securities and Exchange Commission. Full-scale registration discloses
answer

all aspects of the prospective program
question

Certain Securities and Exchange Commission rules allow for
answer

exemption from Securities registration
question

Certain Securities and Exchange Commission rules allow for exemption from Securities registration These exemptions are
answer

the Intrastate Exemption and the Private Offering Exemption
question

Example of Intrastate Exemption
answer

if the Syndicator, the property, and all investors are located within a single state, the Syndication is exempt from Securities registration
question

Example of Private Offering Exemption
answer

If the Syndication is limited to 35 investors or fewer, and the Syndication is not advertised in any way, the program is exempt from Securities registration
question

Whether a Syndication is exempt or not from Securities registration, a Syndicator must give investors a
answer

Prospectus of the Syndication
question

All states have Securities licensing and registration laws in addition to federal laws. As a rule, these laws recognize National Association of Securities Dealers licensing and self- regulation practices. However, real estate licensees wishing to engage in Syndications should be familiar with
answer

applicable Securities laws in their state
question

One sense of goodwill, that is more familiar to accountants is that
answer

goodwill is the difference in value between an owner’s price and the value of all other business assets
question

Example of goodwill
answer

If an owner wants $100,000 for a business, and the totality of tangible and intangible assets is valued at $80,000, the goodwill is a $20,000 asset
question

Conversion is more serious than Commingling. It is effectively an act of
answer

theft. Using monies which do not belong to the Broker
question

The Maloney Act of 1938 revised the requirement of the Federal Securities Exchange Act of 1934 that Securities sellers register with the Securities and Exchange Commission. Instead, it authorized
answer

self-regulation of the Securities industry through any national association which would itself register with the Securities and Exchange Commission. This precipitated the formation of the only such association ever to register with the Securities and Exchange Commission. The National Association of Securities Dealers, or NASD
question

In most states, Commingling funds constitutes grounds for
answer

license suspension or revocation
question

Bid Rigging is
answer

fraud which involves bidding. It is an agreement among competitors as to who will be the winning bidder. Bid rigging occurs when a purchaser solicits bids to purchase goods or services. The bidders agree in advance who will submit the winning bid. The purchaser, which depends on competition between the bidders to generate the lowest competitive price, receives instead a lowest bid that is higher than the competitive market would bear
question

Restricting Market Entry is
answer

obstacles that make it difficult to enter a given market. The term can refer to hindrances a firm faces in trying to enter a market or industry, such as government regulation and patents, or a large established firm taking advantage of economies of scale, or those an individual faces in trying to gain entrance to a profession, such as education or licensing requirements
question

A Stock Sale is
answer

the purchase of the owner’s Shares of a Corporation. While there are many considerations when negotiating the type of transaction, tax implications and potential liabilities are the primary concerns
question

A monopoly is
answer

the exclusive possession or control of the supply or trade in a commodity or service. His likely motive was to protect his regional monopoly on furs
question

A Broker or Agent who wants to undertake Business Brokerage needs basic proficiency in accounting. In particular, one must know how to read and interpret
answer

assets, liabilities, and net worth on a balance sheet
question

Jargon means
answer

special words or expressions that are used by a particular profession or group and are difficult for others to understand
question

A Corporation is domestic if
answer

it is headquartered in the state where the Articles of Incorporation were filed. Otherwise, the Corporation is a foreign Corporation

Get instant access to
all materials

Become a Member