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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

1. Which of the following is most likely to be a factor in an appraisal for an industrial property?

A) Amount of advertising and publicity
B) Access to raw materials used in the region
C) Price trend for detached homes in nearby neighborhoods
D) Proximity to museums and historical sites

2. In regard to Environmental Site Assessments (ESAs), which of the following is NOT accurate?

A) Every new commercial property must undergo an ESA prior to construction.
B) ESAs are regulated under the Canadian Environmental Protection Act.
C) Local building departments use ESAs as the basis for changes to municipal zoning bylaws.
D) An ESA is intended to determine if a property has been contaminated or is facing any environmental threats.

3. 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) Liabilities
B) Assets
C) Net operating income
D) Shareholder's equity

4. A tenant is interested in leasing a property; however, the tenant would like to make improvements to the property. Which of the following statements about tenant improvements is correct?

A) In a lease agreement, the tenant provides a list of improvements to the landlord and the landlord always pays for these improvements.
B) The landlord may offer a "tenant improvement allowance" which provides funds to cover thecosts of tenant improvements.
C) Unless indicated in the lease agreement, improvements attached to the leased building generally become the tenant's property upon vacating the premises.
D) The tenant takes the premises in an "as is" condition and can complete whatever improvements they wish without landlord approval.

5. A brokerage negotiates the sale of a business on behalf of a seller. Which of the following documents must the brokerage provide to the buyer?

A) A list of fixtures included in the sale
B) A profit and loss statement for the real estate brokerage for the preceding 12 months
C) A statement of the assets and liabilities of the brokerage
D) A list of chattels excluded in the sale

Solutions: