M 100 FULL QUESTIONS AND CORRECT
ANSWERS VERIFIED CERTIFICATION
STUDY PACK
●● True or false: The role of the professional community association
manager is to make all decisions for the association and to delegate
information-gathering and fact-finding support to the board of directors.
Answer: False. The professional manager assists the board by providing
information-gathering, implementing board decisions, and administering
services within the policies set by the board.
●● In which of the following forms of community association
management is the association managed by the board itself or by
committees under the direction of the board? a. management company b.
volunteer or self-management c. association-employed manager d.
municipal management
Answer: b. volunteer or self-management. Self-managed associations
handle all community functions, including accounting, record keeping,
and collecting dues. Approximately 150,000 self-managed associations
exist in the U.S.
●● Complete the following sentence: The board of directors in a
community association has a ________ to act in the best interests and
for the benefit of the community as a whole. a. bond b. fiduciary duty c.
ballot d. quorum
,Answer: b. fiduciary duty. The board's fiduciary duty includes two
components: (1) avoiding conflicts of interest and acting out of self-
interest, and (2) managing the association's affairs as reasonable people
would.
●● Complete the following sentence: The ________ bring the
community association into existence, define its basic purposes and
powers, and indicate 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
Answer: d. articles of incorporation. A community association's
corporate structure is established when a developer sets up the
association by filing articles of incorporation.
●● True or False: The public offering statement is a governing
document, as it is often distributed along with the governing documents.
Answer: False. The public offering statement is not a governing
document; it is simply a disclosure that provides information about the
community association to prospective buyers.
●● Each of the following legal sources specify management authority
and responsibilities for community associations EXCEPT: a. survey data
b. state statutes c. community association governing documents d. court
decisions
Answer: a. survey data. Legal sources such as statutes, governing
documents, and court decisions define the authority or powers of
different parties in a community association.
, ●● True or False: The basic authority in a community association lies
with the developer.
Answer: False. The basic authority lies with the owners, who elect a
board to act on their behalf. The governing documents delegate the
majority of decision-making powers to the board.
●● True or false: The purpose of a community association's governing
documents is to provide for the legal structure and operation of the
community.
Answer: True. The governing documents establish the legal framework
and operation of the community.
●● True or false: According to the general hierarchy of authority for
governing documents, the bylaws would control in a conflict with the
recorded map, plat, or plan.
Answer: False. The recorded map, plat, or plan is above the bylaws in
the hierarchy and would prevail in such a conflict.
●● Complete the following sentence: A _______ state statute is one that
applies only to one or more types of community associations. a. general
b. complex c. specific d. uniform
Answer: c. specific. A specific state statute is one that applies only to
certain types of community associations. For example, many states have
a condominium act that provides for the establishment and operation of
ANSWERS VERIFIED CERTIFICATION
STUDY PACK
●● True or false: The role of the professional community association
manager is to make all decisions for the association and to delegate
information-gathering and fact-finding support to the board of directors.
Answer: False. The professional manager assists the board by providing
information-gathering, implementing board decisions, and administering
services within the policies set by the board.
●● In which of the following forms of community association
management is the association managed by the board itself or by
committees under the direction of the board? a. management company b.
volunteer or self-management c. association-employed manager d.
municipal management
Answer: b. volunteer or self-management. Self-managed associations
handle all community functions, including accounting, record keeping,
and collecting dues. Approximately 150,000 self-managed associations
exist in the U.S.
●● Complete the following sentence: The board of directors in a
community association has a ________ to act in the best interests and
for the benefit of the community as a whole. a. bond b. fiduciary duty c.
ballot d. quorum
,Answer: b. fiduciary duty. The board's fiduciary duty includes two
components: (1) avoiding conflicts of interest and acting out of self-
interest, and (2) managing the association's affairs as reasonable people
would.
●● Complete the following sentence: The ________ bring the
community association into existence, define its basic purposes and
powers, and indicate 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
Answer: d. articles of incorporation. A community association's
corporate structure is established when a developer sets up the
association by filing articles of incorporation.
●● True or False: The public offering statement is a governing
document, as it is often distributed along with the governing documents.
Answer: False. The public offering statement is not a governing
document; it is simply a disclosure that provides information about the
community association to prospective buyers.
●● Each of the following legal sources specify management authority
and responsibilities for community associations EXCEPT: a. survey data
b. state statutes c. community association governing documents d. court
decisions
Answer: a. survey data. Legal sources such as statutes, governing
documents, and court decisions define the authority or powers of
different parties in a community association.
, ●● True or False: The basic authority in a community association lies
with the developer.
Answer: False. The basic authority lies with the owners, who elect a
board to act on their behalf. The governing documents delegate the
majority of decision-making powers to the board.
●● True or false: The purpose of a community association's governing
documents is to provide for the legal structure and operation of the
community.
Answer: True. The governing documents establish the legal framework
and operation of the community.
●● True or false: According to the general hierarchy of authority for
governing documents, the bylaws would control in a conflict with the
recorded map, plat, or plan.
Answer: False. The recorded map, plat, or plan is above the bylaws in
the hierarchy and would prevail in such a conflict.
●● Complete the following sentence: A _______ state statute is one that
applies only to one or more types of community associations. a. general
b. complex c. specific d. uniform
Answer: c. specific. A specific state statute is one that applies only to
certain types of community associations. For example, many states have
a condominium act that provides for the establishment and operation of
