CMCA TEST PAPER 2026 EXAMINATION
QUESTIONS AND ANSWERS 100% CORRECT
◉ Alternative dispute resolution. Answer: Mediation, arbitration and
other ways of resolving conflicts with the help of a specially trained
neutral third party without the need for a formal trial or hearing.
◉ Appeal. Answer: A request for a review of a case by a higher
authority—if permitted by the governing documents or statute.
◉ Articles of incorporation. Answer: Bring the corporation into
existence, define its basic purposes and powers, indicate whether
stock will be issued, and indicate whether there will be a board of
directors.
◉ Board liaison system. Answer: Directors are assigned to certain
committees to guide the committee on Board policy and procedures
and to report back to the Board. Directors serving as a liaison must
distinguish their role from the role of the committee chairperson.
◉ Business judgment rule. Answer: 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, nor
will the court substitute its judgment for that of the board. However,
,the board must demonstrate how it has taken care in reaching a
decision.
◉ Bylaws. Answer: Formally adopted governing regulations for the
administration and management of a community association.
◉ CC & Rs (Covenants, Conditions & Restrictions). Answer: The
governing documents that dictate how the homeowners association
operates and what rules the owners—and their tenants and
guests—must obey. These legal documents might also be called the
bylaws, the master deed, the houses rules or another name.
◉ Community association. Answer: A group of owners who wish to
provide a communal basis for preserving, maintaining, and
enhancing their homes and property.
◉ Condominium. Answer: A living unit fully owned by an individual
with an undivided interest in the common elements of the
community. The community association itself owns no real estate as
an association.
◉ Cooperative. Answer: Wherein an individual owns stock or
membership in the cooperative, and holds a proprietary lease or
occupancy agreement for his or her living unit.
,◉ Declaration. Answer: Declaration is used interchangeably with CC
& Rs.
◉ Default hearing. Answer: A hearing held when the alleged violator
fails to appear.
◉ Due process procedure. Answer: A formal process designed to
protect the rights of all parties involved.
◉ Employee handbook. Answer: Also known as a personnel manual.
The employee handbook summarizes company behavior
requirements, outlines benefits offered and also gives tools that can
be used to enforce disciplinary action if needed.
◉ Employment at will. Answer: This is a statement to the effect that
the community association retains the right to dismiss an employee
without cause at any time.
◉ Fiduciary duty. Answer: Requires directors to act in the best
interests and for the benefit of the corporation, thus the community
as a whole.
◉ Governing documents. Answer: Documents which provide for the
legal structure and operation of the community.
, ◉ Hearing notice. Answer: This is a written notice to an alleged
violator that a hearing will be held to consider his or her alleged
violation.
◉ Hierarchy of authority. Answer: Rules and architectural guidelines
may not contradict or be in conflict with the legal sources that take
precedence over them.
◉ Indemnification. Answer: To indemnify and hold harmless means
to exempt an individual or entity from responsibility for claims
made against the organization and to reimburse the individual or
entity for damages or expenses incurred as a result of such claims.
◉ Job description. Answer: A job description is a specific description
of the required duties of a position, skills and knowledge necessary
to perform required duties, and reporting relationships of the
position.
◉ Management audit. Answer: A management audit consists of a
review of governing documents and existing policies and
procedures, current condition of the property, owner/resident
satisfaction, and fiscal operations.
◉ Management ethics. Answer: The term 'ethics' refers to the
specific choices to be made by an individual in his or her
relationships with others.
QUESTIONS AND ANSWERS 100% CORRECT
◉ Alternative dispute resolution. Answer: Mediation, arbitration and
other ways of resolving conflicts with the help of a specially trained
neutral third party without the need for a formal trial or hearing.
◉ Appeal. Answer: A request for a review of a case by a higher
authority—if permitted by the governing documents or statute.
◉ Articles of incorporation. Answer: Bring the corporation into
existence, define its basic purposes and powers, indicate whether
stock will be issued, and indicate whether there will be a board of
directors.
◉ Board liaison system. Answer: Directors are assigned to certain
committees to guide the committee on Board policy and procedures
and to report back to the Board. Directors serving as a liaison must
distinguish their role from the role of the committee chairperson.
◉ Business judgment rule. Answer: 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, nor
will the court substitute its judgment for that of the board. However,
,the board must demonstrate how it has taken care in reaching a
decision.
◉ Bylaws. Answer: Formally adopted governing regulations for the
administration and management of a community association.
◉ CC & Rs (Covenants, Conditions & Restrictions). Answer: The
governing documents that dictate how the homeowners association
operates and what rules the owners—and their tenants and
guests—must obey. These legal documents might also be called the
bylaws, the master deed, the houses rules or another name.
◉ Community association. Answer: A group of owners who wish to
provide a communal basis for preserving, maintaining, and
enhancing their homes and property.
◉ Condominium. Answer: A living unit fully owned by an individual
with an undivided interest in the common elements of the
community. The community association itself owns no real estate as
an association.
◉ Cooperative. Answer: Wherein an individual owns stock or
membership in the cooperative, and holds a proprietary lease or
occupancy agreement for his or her living unit.
,◉ Declaration. Answer: Declaration is used interchangeably with CC
& Rs.
◉ Default hearing. Answer: A hearing held when the alleged violator
fails to appear.
◉ Due process procedure. Answer: A formal process designed to
protect the rights of all parties involved.
◉ Employee handbook. Answer: Also known as a personnel manual.
The employee handbook summarizes company behavior
requirements, outlines benefits offered and also gives tools that can
be used to enforce disciplinary action if needed.
◉ Employment at will. Answer: This is a statement to the effect that
the community association retains the right to dismiss an employee
without cause at any time.
◉ Fiduciary duty. Answer: Requires directors to act in the best
interests and for the benefit of the corporation, thus the community
as a whole.
◉ Governing documents. Answer: Documents which provide for the
legal structure and operation of the community.
, ◉ Hearing notice. Answer: This is a written notice to an alleged
violator that a hearing will be held to consider his or her alleged
violation.
◉ Hierarchy of authority. Answer: Rules and architectural guidelines
may not contradict or be in conflict with the legal sources that take
precedence over them.
◉ Indemnification. Answer: To indemnify and hold harmless means
to exempt an individual or entity from responsibility for claims
made against the organization and to reimburse the individual or
entity for damages or expenses incurred as a result of such claims.
◉ Job description. Answer: A job description is a specific description
of the required duties of a position, skills and knowledge necessary
to perform required duties, and reporting relationships of the
position.
◉ Management audit. Answer: A management audit consists of a
review of governing documents and existing policies and
procedures, current condition of the property, owner/resident
satisfaction, and fiscal operations.
◉ Management ethics. Answer: The term 'ethics' refers to the
specific choices to be made by an individual in his or her
relationships with others.
