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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 NOT relevant information a salesperson must verify when representing a landlord who is planning to lease their industrial property?

A) The salesperson must verify the zoning information for the industrial property.
B) The salesperson must verify the rates and terms of lease for the property.
C) The salesperson must verify the previous tenant's lease rates and terms.
D) The salesperson must verify whether the tenant's intended use for the industrial property is permitted under the zoning bylaw.

2. A salesperson is drafting an agreement to lease a retail property for a tenant client who is looking to open a women's apparel store. Which of the following would NOT be included in the agreement to lease?

A) The commencement date of the lease
B) The names of all parties to the lease
C) The names of all the tenant's suppliers
D) A description of the premises

3. A salesperson is representing a seller of a pet food store and is preparing the marketing materials. Which of the following is a document the salesperson is required to provide to prospective buyersof the business?

A) A statement of the expenses for the business for the past year or since the business was acquired.
B) A list of customers who have purchased products in the last 60 months or since the business was acquired.
C) An income statement for the past 12 months or since the business was acquired.
D) A list of equipment, chattels, and fixtures that are included with the business.

4. In regard to the adjusted book value/asset valuation method of valuing a business, which of the following is correct?

A) The adjusted book value method takes goodwill into account when establishing the value of a business.
B) A company's adjusted book value is entirely unrelated to its net worth.
C) A company's adjusted book value should be equal to the actual market value of the business.
D) The adjusted book value method should not be used when the sale of a business is being implemented or is under consideration.

5. Examples of properties which would warrant a Phase 2 environmental assessment may include heavy industrial sites. Which of the following is NOT an example of a heavy industrial use?

A) Computer training institute
B) Power stations
C) Petroleum storage and distribution sites
D) Chemical manufacturers

Solutions: