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Humber College Exam 4: Invigilated Theory Sample Questions:

1. 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 Chartered Professional Accountants; audited financial statements are prepared by senior Chartered Professional Accountants.
B) Unaudited financial statements are prepared by accounting students; audited financial statements are completed by accountants who have received their professional designation.
C) Audited financial statements provide an accurate picture of the financial status of a business; unaudited financial statements may only contain partially reviewed information.
D) Audited financial statements comply with Generally Accepted Accounting Principles (GAAP); unaudited financial statements do not comply with GAAP.

2. A salesperson is helping a buyer identify their needs and property requirements to select an appropriate office property and they are discussing the office layout. Which of the following is NOTa layout consideration?

A) Fitting rooms
B) Boardrooms, private offices, and workstations
C) Storage
D) Kitchens/lunchrooms

3. A salesperson is assisting the buyer of a retail condominium with the due diligence process. What is a leading practice they should recommend to the buyer?

A) Ensure there is parking and repair space available for commercial trucks.
B) Confirm that the contract of the condominium property management company has been renewed for at least 10 years.
C) Verify if there are any non-competition provisions that need to be satisfied as set out in thecondominium rules or bylaws.
D) Obtain the existing status certificate from the brokerage to verify all restrictions, including shared premises with other businesses in the commercial condominium.

4. Obtaining the size and boundaries of a commercial condominium unit is an important task for a salesperson.
Which of the following statements regarding this task is NOT correct?

A) The original plans should be used to determine the size of a unit.
B) An Ontario Land Surveyor can be hired to measure the space.
C) An architect can be hired to measure the space.
D) Space should be measured in accordance with BOMA standards.

5. A salesperson negotiates the purchase of a retail property for their client, who plans to open a new store at this location. The client asks the salesperson how many parking spots the property will be required to have to meet the zoning requirements. The salesperson replies that the municipality has zoning requirements that set the minimum parking ratio. How will the municipality calculate the parking ratio?

A) The municipality will take the number of available parking spaces and divide it by the property's gross leasable area.
B) The municipality will take the property's gross leasable area and divide it by the number of available parking spaces.
C) The municipality will take the number of available parking spaces and divide it by the projected number of monthly visitors.
D) The municipality will take the number of available parking spaces and divide it by the property's net leasable area.

Solutions: