M-100 QUIZ (ALL SECTIONS) QUESTIONS AND
ANSWERS
Each of the following are key characteristics of a community association EXCEPT:
A. Mandatory lien-based economic charges or assessments are levied on each owner
in order to operate and maintain the community association.
B. Membership in the ca is mandatory and automatic for all owners.
C. A requirement of ca ownership is attending board meetings
D. Certain documents bind all owners to be governed by the community. - Answer -C.
A requirement of community association ownership is attending board meetings.
True or False. The primary purpose of a community association is to provide for the
governance, business, and communal aspects of the association. - Answer -True
Each of the following are basic types of residential community associations
EXCEPT:
a. Planned community
b. Townhouse
c. Cooperative
d. Condominium - Answer -b. Townhouse
True or false. A proprietary lease or occupancy agreement in a cooperative defines
the member or stockholder's rights and obligations in relation to the living unit. - Answer
-True
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
True or False. The public offering statement is a governing document, as it often
distributed along with the governing documents. - Answer -False
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
, True or false. The basic authority in a community association lies with the developer. -
Answer -False. It lies with the owners
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
True or false. The "business judgment rule" means that if a board has exercised
reasonable business judgment in making a decision, the court will generally not
consider the board negligent in its fiduciary duty. - Answer -True
Which of the following community association committees typically are assigned
responsibilities related to elections, nominations, and architectural standards?
a. standing committees
b. professional committees
c. ad hoc committees
d. mandatory committees - Answer -d. mandatory committees
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
.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-managed
Adoption of the annual budget is an example of which of the following type of
resolution?
a. policy resolution
b. administrative resolution
c. special resolution
d. general resolution - Answer -D. General
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
ANSWERS
Each of the following are key characteristics of a community association EXCEPT:
A. Mandatory lien-based economic charges or assessments are levied on each owner
in order to operate and maintain the community association.
B. Membership in the ca is mandatory and automatic for all owners.
C. A requirement of ca ownership is attending board meetings
D. Certain documents bind all owners to be governed by the community. - Answer -C.
A requirement of community association ownership is attending board meetings.
True or False. The primary purpose of a community association is to provide for the
governance, business, and communal aspects of the association. - Answer -True
Each of the following are basic types of residential community associations
EXCEPT:
a. Planned community
b. Townhouse
c. Cooperative
d. Condominium - Answer -b. Townhouse
True or false. A proprietary lease or occupancy agreement in a cooperative defines
the member or stockholder's rights and obligations in relation to the living unit. - Answer
-True
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
True or False. The public offering statement is a governing document, as it often
distributed along with the governing documents. - Answer -False
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
, True or false. The basic authority in a community association lies with the developer. -
Answer -False. It lies with the owners
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
True or false. The "business judgment rule" means that if a board has exercised
reasonable business judgment in making a decision, the court will generally not
consider the board negligent in its fiduciary duty. - Answer -True
Which of the following community association committees typically are assigned
responsibilities related to elections, nominations, and architectural standards?
a. standing committees
b. professional committees
c. ad hoc committees
d. mandatory committees - Answer -d. mandatory committees
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
.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-managed
Adoption of the annual budget is an example of which of the following type of
resolution?
a. policy resolution
b. administrative resolution
c. special resolution
d. general resolution - Answer -D. General
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
