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. A landlord and a tenant have signed an agreement to lease an office space. Prior to the transaction closing, an unforeseeable event occurs that is not the fault of either party. Which statement about the return of the tenant's deposit is NOT correct?

A) The parties may need to obtain a court order that clarifies how the deposit will be returned and distributed.
B) The agreement may contain a clause forfeiting all of the deposit if the landlord has started work on the premises.
C) The landlord and tenant may agree to split the deposit.
D) The tenant can have the deposit back without signing a mutual release as it is not their fault.

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?

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.

3. Established under the Farming and Food Production Protection Act, the Normal Farm PracticesBoard is composed of members appointed by the Minister of Agriculture, Food and Rural Affairs. Which statement is NOT accurate with regard to the Normal Farm Practices Board?

A) The Board can dismiss complaints if the disturbances are the result of normal farm practices.
B) The Board can order farmers to cease practices that cause disturbances if they are not considered to be normal farm practices.
C) The Board can order farmers to modify practices for consistency with normal farm practices.
D) The Board can conduct hearings that are heard by a minimum of five board members.

4. A salesperson should know how to gather key information about a new commercial condominium, including the size of a unit. Which of the following sources of information should a salesperson rely on?

A) A surveyor's certificate for the unit
B) A sketch of the seller's floor layout
C) An opinion from the seller's lawyer
D) An opinion from the property manager

5. Which of the following is a characteristic of main street retail?

A) Consists of newer, free-standing buildings only
B) Must be located in a small, older community
C) Structure size typically ranges from 100,000 to 130,000 square feet
D) Comprises a blend of old and new stores

Solutions: