TX Brokerage Exam Questions and Correct Answers Latest Update 2024
What type of business structure offers offer immediate structure, brand recognition, training, and
ongoing support for the price of start-up fees and ongoing payments? - Answers Franchise
In what business structure do the owners personally bear the responsibility for liability, failure, and
taxes of their business? - Answers Sole proprietor
Which business structure combines the benefits of pass-through profit and loss with a legal shield for
the owners from personal liability? - Answers Limited liability company (LLC)
What's an affiliated business arrangement? - Answers One in which each company agrees to refer
business to one another (often seen with real estate brokerages and other settlement provider
companies, such as title companies).
What's a merger? - Answers The joining of two companies
What's an acquisition? - Answers The purchase of one company by another
What's included in a business culture? - Answers Organizational structures and systems, management
styles, duties and responsibilities of staff members by level, training and professional development
philosophies, policies and procedures, and compensation/financial decision-making
What's another name for an operating structure? - Answers A work structure (process)
In which type of organization are operations highly controlled at the top? - Answers Centralized
In which type of organization are there fewer layers of management at the top? - Answers Decentralized
What is line authority? - Answers Authority given to those with directly responsible for achieving the
company's goals and objectives.
What is staff authority? - Answers Authority given to those who assist line authority.
What is functional authority? - Answers Authority granted to staff by top management to perform a
specific function.
What is an informal organization? - Answers An organization that exists within a formal organization
that works on a subtle level; management is often unaware it exists. It's how work actually gets done
What should a broker's policy be on embracing technology for the brokerage? - Answers A brokerage
should adopt advancements that increase efficiency and match customer expectations.
What market analysis data can be used to help determine the best location and structure for a physical
office? - Answers Information about the target market
In general, principal working quarters should equal ____square feet per staff member. - Answers 100
What type of business structure offers offer immediate structure, brand recognition, training, and
ongoing support for the price of start-up fees and ongoing payments? - Answers Franchise
In what business structure do the owners personally bear the responsibility for liability, failure, and
taxes of their business? - Answers Sole proprietor
Which business structure combines the benefits of pass-through profit and loss with a legal shield for
the owners from personal liability? - Answers Limited liability company (LLC)
What's an affiliated business arrangement? - Answers One in which each company agrees to refer
business to one another (often seen with real estate brokerages and other settlement provider
companies, such as title companies).
What's a merger? - Answers The joining of two companies
What's an acquisition? - Answers The purchase of one company by another
What's included in a business culture? - Answers Organizational structures and systems, management
styles, duties and responsibilities of staff members by level, training and professional development
philosophies, policies and procedures, and compensation/financial decision-making
What's another name for an operating structure? - Answers A work structure (process)
In which type of organization are operations highly controlled at the top? - Answers Centralized
In which type of organization are there fewer layers of management at the top? - Answers Decentralized
What is line authority? - Answers Authority given to those with directly responsible for achieving the
company's goals and objectives.
What is staff authority? - Answers Authority given to those who assist line authority.
What is functional authority? - Answers Authority granted to staff by top management to perform a
specific function.
What is an informal organization? - Answers An organization that exists within a formal organization
that works on a subtle level; management is often unaware it exists. It's how work actually gets done
What should a broker's policy be on embracing technology for the brokerage? - Answers A brokerage
should adopt advancements that increase efficiency and match customer expectations.
What market analysis data can be used to help determine the best location and structure for a physical
office? - Answers Information about the target market
In general, principal working quarters should equal ____square feet per staff member. - Answers 100
