CMCA M100 UPDATED ACTUAL Exam
Questions and CORRECT Answers
Negligence - CORRECT ANSWER failure to exercise a duty of care
Ethics - CORRECT ANSWER learning right from wrong and doing the right thing.
Duty of Care - CORRECT ANSWER exercising the skill and care a reasonable person would
i a similar situation
Duty of Loyalty - CORRECT ANSWER acting solely in another parties interests when
administering their assets
Acceleration - CORRECT ANSWER the collection of all assessments due thru the end of the
fiscal year
accrual basis of accounting - CORRECT ANSWER accounting method that records income
as it is earned or assessed to owners and expenses when they are incurred or acquired
ad hoc committee - CORRECT ANSWER a committee used on a short term basis
Advertising Injury - CORRECT ANSWER Refers to misappropriation of advertising ideas, or
infringement of copyright, title or slogan.
agreed upon endorsement - CORRECT ANSWER a policy endorsement that provides for an
agreed upon limit of property insurance
alternative dispute resolution - CORRECT ANSWER a process by which two parties resolve
conflicts through the use of a specially trained, neutral third party
, appeal - CORRECT ANSWER To request review of a case by higher authority- if permitted
by the governing docs or statute
articles of incorporation - CORRECT ANSWER a document to bring the corporation into
existence, define its basic purpose and powers, indicate whether stock will b issued, and if there
will b a board of directors
assignability provision - CORRECT ANSWER one of the 6legally binding contract
provisions that states that neither party may assign its obligations under the contract to any other
person without the Express written consent of the other party
Balance Sheet - CORRECT ANSWER a summary of the community's financial position at a
specific point in time
baseline funding - CORRECT ANSWER a funding strategy whose goal is to keep the reserve
cash balance above 0
board liaison system - CORRECT ANSWER when directors are assigned to certain
committees to guide the committee on board policy and procedures and report back to the board
business judgement rule - CORRECT ANSWER a presumption that in making a business
decision, the directors of a corporation acted on an informed basis, in good faith and in the
honest belief that the action taken was in the best interests of the company.
Bylaws - CORRECT ANSWER formally adopted governing regulations for administration
and management for a community association
Cash Basis Accounting - CORRECT ANSWER method that records income when it is
collected and expenses when they are paid
CC&R'S (Covenants, Conditions and Restrictions) - CORRECT ANSWER The governing
documents that
Questions and CORRECT Answers
Negligence - CORRECT ANSWER failure to exercise a duty of care
Ethics - CORRECT ANSWER learning right from wrong and doing the right thing.
Duty of Care - CORRECT ANSWER exercising the skill and care a reasonable person would
i a similar situation
Duty of Loyalty - CORRECT ANSWER acting solely in another parties interests when
administering their assets
Acceleration - CORRECT ANSWER the collection of all assessments due thru the end of the
fiscal year
accrual basis of accounting - CORRECT ANSWER accounting method that records income
as it is earned or assessed to owners and expenses when they are incurred or acquired
ad hoc committee - CORRECT ANSWER a committee used on a short term basis
Advertising Injury - CORRECT ANSWER Refers to misappropriation of advertising ideas, or
infringement of copyright, title or slogan.
agreed upon endorsement - CORRECT ANSWER a policy endorsement that provides for an
agreed upon limit of property insurance
alternative dispute resolution - CORRECT ANSWER a process by which two parties resolve
conflicts through the use of a specially trained, neutral third party
, appeal - CORRECT ANSWER To request review of a case by higher authority- if permitted
by the governing docs or statute
articles of incorporation - CORRECT ANSWER a document to bring the corporation into
existence, define its basic purpose and powers, indicate whether stock will b issued, and if there
will b a board of directors
assignability provision - CORRECT ANSWER one of the 6legally binding contract
provisions that states that neither party may assign its obligations under the contract to any other
person without the Express written consent of the other party
Balance Sheet - CORRECT ANSWER a summary of the community's financial position at a
specific point in time
baseline funding - CORRECT ANSWER a funding strategy whose goal is to keep the reserve
cash balance above 0
board liaison system - CORRECT ANSWER when directors are assigned to certain
committees to guide the committee on board policy and procedures and report back to the board
business judgement rule - CORRECT ANSWER a presumption that in making a business
decision, the directors of a corporation acted on an informed basis, in good faith and in the
honest belief that the action taken was in the best interests of the company.
Bylaws - CORRECT ANSWER formally adopted governing regulations for administration
and management for a community association
Cash Basis Accounting - CORRECT ANSWER method that records income when it is
collected and expenses when they are paid
CC&R'S (Covenants, Conditions and Restrictions) - CORRECT ANSWER The governing
documents that
