Georgia Community Association Manager (CAM) License Exam
Prep | Comprehensive Study Guide with Realistic Practice
Questions, Detailed Answer Explanations & Professional Review
for Community Association Management
Question 1
A Community Association Manager's fiduciary responsibility primarily requires the manager
to:
A. Maximize personal profit from association contracts
B. Follow instructions from individual homeowners regardless of governing documents
C. Act in the best interests of the association while exercising honesty, loyalty, and
reasonable care
D. Approve all homeowner requests without board approval
Correct Answer: C. Act in the best interests of the association while exercising
honesty, loyalty, and reasonable care
Rationale: A CAM has a fiduciary duty to place the interests of the association above
personal interests while acting ethically and professionally.
Question 2
Which governing document generally establishes the legal existence of a community
association?
A. Meeting minutes
,B. Budget
C. Declaration of Covenants, Conditions, and Restrictions (CC&Rs)/Declaration
D. Vendor contract
Correct Answer: C. Declaration of Covenants, Conditions, and Restrictions
(CC&Rs)/Declaration
Rationale: The declaration creates the community association and defines property rights,
restrictions, and responsibilities.*
Question 3
The board of directors is primarily responsible for:
A. Collecting trash
B. Landscaping every lot
C. Establishing policies and governing the association
D. Performing plumbing repairs
Correct Answer: C. Establishing policies and governing the association
Rationale: The board establishes policy while the CAM implements board decisions.*
Question 4
What is the primary purpose of association assessments?
A. Increase property taxes
B. Generate investment income
,C. Fund the operation and maintenance of the community
D. Pay individual homeowners
Correct Answer: C. Fund the operation and maintenance of the community
Rationale: Assessments finance maintenance, insurance, utilities, reserves, and other
common expenses.*
Question 5
Which financial report compares actual revenues and expenses against planned amounts?
A. Balance sheet
B. Income tax return
C. Budget variance report
D. Reserve study
Correct Answer: C. Budget variance report
Rationale: Variance reports help the board monitor financial performance.*
Question 6
A reserve fund is established primarily to:
A. Pay routine monthly utility bills
B. Increase management fees
C. Finance future major repairs and replacements
, D. Cover employee bonuses
Correct Answer: C. Finance future major repairs and replacements
Rationale: Reserve funds reduce the need for large special assessments.*
Question 7
Which insurance policy generally protects the association against third-party injury claims?
A. Flood insurance
B. Title insurance
C. General liability insurance
D. Mortgage insurance
Correct Answer: C. General liability insurance
Rationale: General liability coverage protects against bodily injury and property damage
claims.*
Question 8
Meeting minutes should primarily contain:
A. Personal opinions
B. Complete conversations
C. Official actions and decisions of the board
D. Homeowner gossip
Prep | Comprehensive Study Guide with Realistic Practice
Questions, Detailed Answer Explanations & Professional Review
for Community Association Management
Question 1
A Community Association Manager's fiduciary responsibility primarily requires the manager
to:
A. Maximize personal profit from association contracts
B. Follow instructions from individual homeowners regardless of governing documents
C. Act in the best interests of the association while exercising honesty, loyalty, and
reasonable care
D. Approve all homeowner requests without board approval
Correct Answer: C. Act in the best interests of the association while exercising
honesty, loyalty, and reasonable care
Rationale: A CAM has a fiduciary duty to place the interests of the association above
personal interests while acting ethically and professionally.
Question 2
Which governing document generally establishes the legal existence of a community
association?
A. Meeting minutes
,B. Budget
C. Declaration of Covenants, Conditions, and Restrictions (CC&Rs)/Declaration
D. Vendor contract
Correct Answer: C. Declaration of Covenants, Conditions, and Restrictions
(CC&Rs)/Declaration
Rationale: The declaration creates the community association and defines property rights,
restrictions, and responsibilities.*
Question 3
The board of directors is primarily responsible for:
A. Collecting trash
B. Landscaping every lot
C. Establishing policies and governing the association
D. Performing plumbing repairs
Correct Answer: C. Establishing policies and governing the association
Rationale: The board establishes policy while the CAM implements board decisions.*
Question 4
What is the primary purpose of association assessments?
A. Increase property taxes
B. Generate investment income
,C. Fund the operation and maintenance of the community
D. Pay individual homeowners
Correct Answer: C. Fund the operation and maintenance of the community
Rationale: Assessments finance maintenance, insurance, utilities, reserves, and other
common expenses.*
Question 5
Which financial report compares actual revenues and expenses against planned amounts?
A. Balance sheet
B. Income tax return
C. Budget variance report
D. Reserve study
Correct Answer: C. Budget variance report
Rationale: Variance reports help the board monitor financial performance.*
Question 6
A reserve fund is established primarily to:
A. Pay routine monthly utility bills
B. Increase management fees
C. Finance future major repairs and replacements
, D. Cover employee bonuses
Correct Answer: C. Finance future major repairs and replacements
Rationale: Reserve funds reduce the need for large special assessments.*
Question 7
Which insurance policy generally protects the association against third-party injury claims?
A. Flood insurance
B. Title insurance
C. General liability insurance
D. Mortgage insurance
Correct Answer: C. General liability insurance
Rationale: General liability coverage protects against bodily injury and property damage
claims.*
Question 8
Meeting minutes should primarily contain:
A. Personal opinions
B. Complete conversations
C. Official actions and decisions of the board
D. Homeowner gossip
