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Humber College Exam 4: Invigilated Theory Sample Questions:
1. 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:
A) Assets
B) Liabilities
C) Shareholder's equity
D) Net operating income
2. A buyer client is interested in purchasing a 30,000 sq. ft. industrial building in an industrial park. The buyer's salesperson drafts an agreement of purchase and sale that includes an environmental site assessment condition that must be met at the buyer's own expense, and to the buyer's satisfaction. Which of the following is NOT an accurate statement regarding the environmental site assessment condition?
A) The environmental site assessment condition makes the offer conditional upon all possible court actions regarding environmental matters being thought of and reported.
B) The environmental site assessment condition makes the offer conditional upon the seller delivering documents, records, and reports relating to environmental matters to the buyer upon request.
C) The environmental site assessment condition makes the offer conditional upon the buyer determining that the property is free from hazardous conditions or substances.
D) The environmental site assessment condition makes the offer conditional upon the buyer determining that no limitations or restrictions affecting the continued use of the property exist.
3. A buyer should consider the record of site condition (RSC) document when purchasing a commercial property. Which of the following statements regarding an RSC is correct?
A) It is not a material fact; thus, it is a formality for the buyer to get it.
B) With other documents, it will inform the buyer of any legal issues attached to the title.
C) Requesting an RSC is mandatory in all real estate transactions.
D) It contains records pertaining to a property's financial condition.
4. What should a salesperson do if they are unable to secure documentation to verify the usable and rentable areas of a property?
A) Use a laser measuring tool to take the measurements and use the R/U factor to calculate the figures
B) Use a laser measuring tool to take the measurements
C) Use the R/U factor to calculate the figures
D) Recommend that the landlord obtain the professional services of a measuring company to obtain the figures
5. Which of the following is NOT relevant information a salesperson must verify when representing a landlord who is planning to lease their industrial property?
A) The salesperson must verify whether the tenant's intended use for the industrial property is permitted under the zoning bylaw.
B) The salesperson must verify the zoning information for the industrial property.
C) The salesperson must verify the previous tenant's lease rates and terms.
D) The salesperson must verify the rates and terms of lease for the property.
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: A | Question # 3 Answer: B | Question # 4 Answer: D | Question # 5 Answer: C |




