M100 Community Association
Management Exam Questions with
correct Answers
SECTION 1: GOVERNANCE AND LEGAL FOUNDATIONS
(Questions 1–35)
Question 1
Each of the following are key characteristics of community
associations EXCEPT:
A) Mandatory lien-based economic charges or assessments are
levied on each owner in order to operate and maintain the
community association.
B) Membership in the community association is mandatory and
automatic for all owners.
C) A requirement of community association ownership is serving
on the board of directors.
D) Certain documents bind all owners to be governed by the
community association.
Correct Answer: C
Rationale: The three key characteristics common to all
community associations are: (1) mandatory membership, (2)
mandatory lien-based assessments, and (3) binding governing
documents. Members of an association are not legally required to
serve on the board of directors; service is voluntary.
,Question 2
True or False: The primary purpose of a community association is
to provide for the governance, business, and communal aspects of
the association.
A) True
B) False
Correct Answer: A (True)
Rationale: The primary purpose is achieved by administering,
maintaining, and enhancing a residential real estate development,
and through the establishment of a system of property rights,
binding covenants and restrictions, and rules and regulations.
Question 3
Each of the following are basic types of residential community
associations EXCEPT:
A) Planned community
B) Townhouse
C) Cooperative
D) Condominium
Correct Answer: B
Rationale: While many community associations are indeed
townhouse communities, not all such developments are
,necessarily associations. A community association is defined in
terms of ownership rights—not architectural style. The three basic
types are planned community, condominium, and cooperative.
Question 4
Which document is considered the highest in the hierarchy of
governing documents for a community association?
A) Rules and Regulations
B) Articles of Incorporation
C) Bylaws
D) Declaration of Covenants, Conditions, and Restrictions (CC&Rs)
E) Board Resolutions
Correct Answer: D
Rationale: The Declaration (CC&Rs) is the foundational document
that establishes the association, defines property rights and
restrictions, and is typically considered superior to all other
governing documents.
Question 5
Which governing document typically defines the powers and
duties of the Board of Directors and the procedures for meetings
and elections?
, A) Declaration of Covenants, Conditions, and Restrictions (CC&Rs)
B) Rules and Regulations
C) Articles of Incorporation
D) Bylaws
E) Association Handbook
Correct Answer: D
Rationale: Bylaws contain the specific rules for the internal
operation and management of the association, including the
structure of the Board, officer duties, meeting procedures, and
election processes.
Question 6
What document brings the community association into existence,
defines its basic purposes and powers, and indicates whether
stock will be issued?
A) Recorded map, plat, or plan
B) Declaration, CC&Rs, or master deed
C) Proprietary lease or occupancy agreement
D) Articles of Incorporation
Correct Answer: D
Rationale: The Articles of Incorporation bring the association into
existence as a legal entity, define its basic purposes and powers,
and indicate whether stock will be issued.
Management Exam Questions with
correct Answers
SECTION 1: GOVERNANCE AND LEGAL FOUNDATIONS
(Questions 1–35)
Question 1
Each of the following are key characteristics of community
associations EXCEPT:
A) Mandatory lien-based economic charges or assessments are
levied on each owner in order to operate and maintain the
community association.
B) Membership in the community association is mandatory and
automatic for all owners.
C) A requirement of community association ownership is serving
on the board of directors.
D) Certain documents bind all owners to be governed by the
community association.
Correct Answer: C
Rationale: The three key characteristics common to all
community associations are: (1) mandatory membership, (2)
mandatory lien-based assessments, and (3) binding governing
documents. Members of an association are not legally required to
serve on the board of directors; service is voluntary.
,Question 2
True or False: The primary purpose of a community association is
to provide for the governance, business, and communal aspects of
the association.
A) True
B) False
Correct Answer: A (True)
Rationale: The primary purpose is achieved by administering,
maintaining, and enhancing a residential real estate development,
and through the establishment of a system of property rights,
binding covenants and restrictions, and rules and regulations.
Question 3
Each of the following are basic types of residential community
associations EXCEPT:
A) Planned community
B) Townhouse
C) Cooperative
D) Condominium
Correct Answer: B
Rationale: While many community associations are indeed
townhouse communities, not all such developments are
,necessarily associations. A community association is defined in
terms of ownership rights—not architectural style. The three basic
types are planned community, condominium, and cooperative.
Question 4
Which document is considered the highest in the hierarchy of
governing documents for a community association?
A) Rules and Regulations
B) Articles of Incorporation
C) Bylaws
D) Declaration of Covenants, Conditions, and Restrictions (CC&Rs)
E) Board Resolutions
Correct Answer: D
Rationale: The Declaration (CC&Rs) is the foundational document
that establishes the association, defines property rights and
restrictions, and is typically considered superior to all other
governing documents.
Question 5
Which governing document typically defines the powers and
duties of the Board of Directors and the procedures for meetings
and elections?
, A) Declaration of Covenants, Conditions, and Restrictions (CC&Rs)
B) Rules and Regulations
C) Articles of Incorporation
D) Bylaws
E) Association Handbook
Correct Answer: D
Rationale: Bylaws contain the specific rules for the internal
operation and management of the association, including the
structure of the Board, officer duties, meeting procedures, and
election processes.
Question 6
What document brings the community association into existence,
defines its basic purposes and powers, and indicates whether
stock will be issued?
A) Recorded map, plat, or plan
B) Declaration, CC&Rs, or master deed
C) Proprietary lease or occupancy agreement
D) Articles of Incorporation
Correct Answer: D
Rationale: The Articles of Incorporation bring the association into
existence as a legal entity, define its basic purposes and powers,
and indicate whether stock will be issued.
