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Humber College Exam 4: Invigilated Theory Sample Questions:
1. 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) A description of the premises
C) The names of all parties to the lease
D) The names of all the tenant's suppliers
2. 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) The adjusted book value method should not be used when the sale of a business is being implemented or is under consideration.
C) A company's adjusted book value is entirely unrelated to its net worth.
D) A company's adjusted book value should be equal to the actual market value of the business.
3. A tenant is renting 4,000 square feet of space in a commercial shopping center under a net lease. The base rent is $20 per square foot per annum, and there is a percentage rent of 5% of gross sales over the base rent. The tenant has annual gross sales of $1,000,000. The annual expenses are $10 per square foot. How much annual base rent does the tenant have to pay?
A) $60,000
B) $80,000
C) $120,000
D) $130,000
4. A salesperson is drafting an offer and discussing with the buyer the steps required for due diligencewhen purchasing a commercial condominium unit. All of the steps below are included in due diligence, EXCEPT:
A) Estimate time frames required for due diligence and other offer conditions
B) Identify third-party professionals
C) Gather, organize, and verify all pertinent information
D) Create a business plan
5. Which of the following statements about economic development offices is NOT correct?
A) Economic development offices can help guide development applications through municipal processes and streamline the approvals process for companies unfamiliar with regulatory requirements.
B) Economic development offices can provide you with real property information regarding tax assessments and how to appeal your real estate taxes.
C) Economic development offices have important resources for those seeking suitable commercial sites for business operations.
D) Economic development offices provide background information on local, provincial, and federal research and development incentives.
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: A | Question # 3 Answer: B | Question # 4 Answer: D | Question # 5 Answer: B |
By Baron
