CMCA Study Guide Exam (New 2026/ 2027
Update) Questions & Answers {Grade A}
100% Correct (Verified Solutions)
Resolution - Correct answer A motion that follows a set format and is formally
adopted by the board of directors
Statute - Correct answer A formal written enactment of a legislative authority that
governs a country, state, city or county
Umbrella association - Correct answer A cluster of community association types that
can include aspects of homeowners associations, condominiums and cooperatives
Ad hoc committee - Correct answer Used when an objective needs consideration and
no standing
committee within the organization can absorb that issue into its scope. Usually these
committees
are used on a short
-
,term basis, such as temporary oversight of an issue
or review of the standing rules of that community
Board liaison system - Correct answer Directors are assigned to certain committees
to guide the
committee on Board policy and procedures and to repo
rt back to the Board.
Directors serving as a liaison must distinguish their role from the role of the
committee chairperson.
Business judgment rule - Correct answer If a board has exercised reasonable
business judgment in
making a decision, the court will generally not c
onsider the board negligent in it
s
fiduciary duty, nor will the court substitute its judgment for that of the board
,Fiduciary duty - Correct answer Requires directors to act in the best interests and for
the benefit of
the corporation, thus the community as a whole.
the members are required to avoid conflicts
of interest and acting
out of self-interest;
the members are also required to act as reasonable
people in managing the association's affairs
Management ethics - Correct answer consists of a review of governing
documents and existing policies and procedures, current condition of the property,
owner/resident satisfaction, and fiscal operations. This review can be done by the
board and man
ager together, or a third
-
party management consultant can be hired
Management plan - Correct answer a statement of goals and objectives
, approved by the board. It includes the yearly cycle of tasks that management should
perform on the community
association's behalf
Standing committee - Correct answer Committees which have a continued existence
and are not
related to the accomplishment of a specific, once
-
only task. Budget and nomination
committees are examples of standing committees
Alternative dispute resolution - Correct answer Mediation, arbitration and other ways
of resolving
conflicts with the help of a specially trained neutral third party without the need for a
formal trial or hearing
Appeal - Correct answer A request for a review of a case by a higher authority
—
Update) Questions & Answers {Grade A}
100% Correct (Verified Solutions)
Resolution - Correct answer A motion that follows a set format and is formally
adopted by the board of directors
Statute - Correct answer A formal written enactment of a legislative authority that
governs a country, state, city or county
Umbrella association - Correct answer A cluster of community association types that
can include aspects of homeowners associations, condominiums and cooperatives
Ad hoc committee - Correct answer Used when an objective needs consideration and
no standing
committee within the organization can absorb that issue into its scope. Usually these
committees
are used on a short
-
,term basis, such as temporary oversight of an issue
or review of the standing rules of that community
Board liaison system - Correct answer Directors are assigned to certain committees
to guide the
committee on Board policy and procedures and to repo
rt back to the Board.
Directors serving as a liaison must distinguish their role from the role of the
committee chairperson.
Business judgment rule - Correct answer If a board has exercised reasonable
business judgment in
making a decision, the court will generally not c
onsider the board negligent in it
s
fiduciary duty, nor will the court substitute its judgment for that of the board
,Fiduciary duty - Correct answer Requires directors to act in the best interests and for
the benefit of
the corporation, thus the community as a whole.
the members are required to avoid conflicts
of interest and acting
out of self-interest;
the members are also required to act as reasonable
people in managing the association's affairs
Management ethics - Correct answer consists of a review of governing
documents and existing policies and procedures, current condition of the property,
owner/resident satisfaction, and fiscal operations. This review can be done by the
board and man
ager together, or a third
-
party management consultant can be hired
Management plan - Correct answer a statement of goals and objectives
, approved by the board. It includes the yearly cycle of tasks that management should
perform on the community
association's behalf
Standing committee - Correct answer Committees which have a continued existence
and are not
related to the accomplishment of a specific, once
-
only task. Budget and nomination
committees are examples of standing committees
Alternative dispute resolution - Correct answer Mediation, arbitration and other ways
of resolving
conflicts with the help of a specially trained neutral third party without the need for a
formal trial or hearing
Appeal - Correct answer A request for a review of a case by a higher authority
—
