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Free PDF 2025 Humber College PREX-1060A: Exam 4: Invigilated Theory Exam Perfect Practice Test
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Humber College Exam 4: Invigilated Theory Exam Sample Questions (Q35-Q40):
NEW QUESTION # 35
A salesperson is preparing to list an industrial building and wants to assess the availability and size of utilities, as these factors may prohibit a change in use for the potential buyer. Which of the following is correct?
- A. If the information on the building's utilities is not available, the salesperson can determine it by finding out the specifications of the utilities of the neighbors.
- B. The seller may have up-to-date documentation about the utilities but, in some situations, a third-party professional assessment is still needed.
- C. If the information on the subject building's utilities is available, then a potential buyer will not put a condition in the offer.
- D. The salesperson should conduct a visual inspection of the building to determine the specifications of the utilities.
Answer: B
NEW QUESTION # 36
Which of the following statements about economic development offices is NOT correct?
- A. Economic development offices have important resources for those seeking suitable commercial sites for business operations.
- B. Economic development offices provide background information on local, provincial, and federal research and development incentives.
- C. Economic development offices can provide you with real property information regarding tax assessments and how to appeal your real estate taxes.
- D. Economic development offices can help guide development applications through municipal processes and streamline the approvals process for companies unfamiliar with regulatory requirements.
Answer: C
NEW QUESTION # 37
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 accounting students; audited financial statements are completed by accountants who have received their professional designation.
- 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 Chartered Professional Accountants; audited financial statements are prepared by senior Chartered Professional Accountants.
- D. Audited financial statements comply with Generally Accepted Accounting Principles (GAAP); unaudited financial statements do not comply with GAAP.
Answer: D
NEW QUESTION # 38
Salespersons are required to verify, wherever they can, information provided by landlords, such as zoning details and permitted uses. A salesperson is helping a major landlord to lease out a big retail mall that involves complex matters. Which of the following does NOT need third-party professional advice?
- A. The number of sprinklers required in every unit
- B. The total remuneration payable for a 20-year lease
- C. The total area measurements
- D. The maximum floor load of every unit
Answer: B
NEW QUESTION # 39
A first-time investor is looking to purchase a commercial property and asks their salesperson about the gains they can hope to achieve from this type of asset. What should the salesperson explain to their client regarding the purchase of commercial properties as a source of capital growth?
- A. The salesperson should explain that making a commercial property investment is an easy and smooth process that provides good short-term gains.
- B. The salesperson should explain that to achieve capital growth, the client should be a long-term investor.
- C. The salesperson should explain that a better return on investment will be achieved with rising interest rates.
- D. The salesperson should explain that the client should always consider being a short-term investor.
Answer: B
NEW QUESTION # 40
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