Texas SAE Real Estate Brokerage exam
questions with correct answers
acquisition - ANSWER: ➡ when one company buys most or all shares in another company to
assume control of its assets and operations
merger - ANSWER: ➡ when two or more companies join to form a single firm
arbitration - ANSWER: ➡ the parties agree to let the arbitrator determine the outcome of the
dispute; this can be legally binding
litigation - ANSWER: ➡ the process of taking legal action with a binding decision coming from a
judge
mitigation - ANSWER: ➡ the action of reducing the severity, seriousness, or painfulness of
something
general - ANSWER: ➡ the type of partner shares full personal liability for the partnership's debts
and obligations
mediation - ANSWER: ➡ the parties meet with a third party to attempt to resolve their differences,
this outsider acts as a facilitator, and their recommendations are non-binding
10 - ANSWER: ➡ Court-ordered supervision may last as long as ______ years if a brokerage or
individual is found guilty of violating antitrust law.
GDP - ANSWER: ➡ measurement of total sales of goods and services for the market
CPI - ANSWER: ➡ measurement of inflation
, MARTS - ANSWER: ➡ survey of all retail and food service sales
CCI - ANSWER: ➡ measurement of confidence in the economy
3-5 years - ANSWER: ➡ typical timeframe of a long term plan
tactics - ANSWER: ➡ specific tasks that must be performed to achieve strategies
line authority - ANSWER: ➡ authority that entitles a manager to direct the work of an employee
staff authority - ANSWER: ➡ the right to advise, but not command, others who are not
subordinates in the chain of command
functional authority - ANSWER: ➡ the authority that allows staff experts to make decisions and
take actions normally reserved for line managers
Sole proprietorship - ANSWER: ➡ a business owned and managed by a single individual
partnership - ANSWER: ➡ the type of business in which two or more persons combine their assets
and skills
corporation - ANSWER: ➡ a company or group of people authorized to act as a single entity (legally
a person) and recognized as such in law
limited liability company - ANSWER: ➡ type of business enterprise that protects members against
losing all of their personal wealth; members are taxed as if they were in a partnership
franchise - ANSWER: ➡ the right to sell a good or service within an exclusive market
gross - ANSWER: ➡ the landlord pays all expenses related to the property
questions with correct answers
acquisition - ANSWER: ➡ when one company buys most or all shares in another company to
assume control of its assets and operations
merger - ANSWER: ➡ when two or more companies join to form a single firm
arbitration - ANSWER: ➡ the parties agree to let the arbitrator determine the outcome of the
dispute; this can be legally binding
litigation - ANSWER: ➡ the process of taking legal action with a binding decision coming from a
judge
mitigation - ANSWER: ➡ the action of reducing the severity, seriousness, or painfulness of
something
general - ANSWER: ➡ the type of partner shares full personal liability for the partnership's debts
and obligations
mediation - ANSWER: ➡ the parties meet with a third party to attempt to resolve their differences,
this outsider acts as a facilitator, and their recommendations are non-binding
10 - ANSWER: ➡ Court-ordered supervision may last as long as ______ years if a brokerage or
individual is found guilty of violating antitrust law.
GDP - ANSWER: ➡ measurement of total sales of goods and services for the market
CPI - ANSWER: ➡ measurement of inflation
, MARTS - ANSWER: ➡ survey of all retail and food service sales
CCI - ANSWER: ➡ measurement of confidence in the economy
3-5 years - ANSWER: ➡ typical timeframe of a long term plan
tactics - ANSWER: ➡ specific tasks that must be performed to achieve strategies
line authority - ANSWER: ➡ authority that entitles a manager to direct the work of an employee
staff authority - ANSWER: ➡ the right to advise, but not command, others who are not
subordinates in the chain of command
functional authority - ANSWER: ➡ the authority that allows staff experts to make decisions and
take actions normally reserved for line managers
Sole proprietorship - ANSWER: ➡ a business owned and managed by a single individual
partnership - ANSWER: ➡ the type of business in which two or more persons combine their assets
and skills
corporation - ANSWER: ➡ a company or group of people authorized to act as a single entity (legally
a person) and recognized as such in law
limited liability company - ANSWER: ➡ type of business enterprise that protects members against
losing all of their personal wealth; members are taxed as if they were in a partnership
franchise - ANSWER: ➡ the right to sell a good or service within an exclusive market
gross - ANSWER: ➡ the landlord pays all expenses related to the property
