Nevada Community Manager Practice Test Questions and Correct Answers

Nevada Community Manager Practice Test
Questions and Correct Answers
Question 1
What is the minimum amount of liability insurance or bond coverage required for a
reserve study specialist?
Choose only ONE best answer.
A) $1,000,000
B) $250,000
C) $500,000
D) $100,000
Correct Answer
A) $1,000,000



Question 2
What happens to fines or penalties collected by the Commission? Choose only ONE
best answer.
A) They are distributed to affected unit owners
B) They are used to increase association reserves
C) They are deposited into the State General Fund
D) They are returned to the violator after six months
Correct Answer
C) They are deposited into the State General Fund



Question 3
Under NRS 116.320, a unit owner has the right to display the flag of the United States
or the State of Nevada, provided that:
Choose only ONE best answer:A) The flag is used for commercial advertisingB) The
flag is displayed in an area the owner has a right to occupy exclusivelyC) The flag is
larger than the building's heightD) The association gives prior written approval
Correct Answer
B) The flag is displayed in an area the owner has a right to occupy exclusively.




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,Question 4
According to NRS 40.645, what must be included in a notice of defect?Choose only
ONE best answer.
A) A signed statement verifying the defects exist
B) An estimate of the cost of repairs
C) The expected outcome of the complaint
D) A sworn affidavit from an expert witness
Correct Answer
A) A signed statement verifying the defects exist



Question 5
The three types of communication are verbal, written, and kinesthetic.
Choose only ONE best answer:
A) True
B) False
Correct Answer
B) False. The three types of communication are verbal, written, and physical (not
kinesthetic).



Question 6
Declarant control ends 5 years after:
Choose only ONE best answer.
A) Construction begins
B) The association is created
C) All declarants stop offering units for sale
D) 100% of units are sold

Correct Answer
C) All declarants stop offering units for sale




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,Question 7
Which is considered unprofessional conduct?
Choose only ONE best answer.
A) Referring a friend for work
B) Submitting false material statements
C) Delaying a study due to vacation
D) Discussing unrelated legal matters
Correct Answer
B) Submitting false material statements



Question 8
A cooperative is a form of common interest community.
Choose only ONE best answer:
A) True
B) False
Correct Answer
A) True.



Question 9
Except as otherwise provided by statute, a community manager shall at all times
comply with all applicable federal, state, and local laws. Choose only ONE best
answer.
A) True
B) False
Correct Answer
A) True




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, Question 10
What is included in the definition of "Assessments"?
Choose only ONE best answer.
A) Late charges, interest, and collection costs
B) Court fees
C) Home appraisal fees
D) Mortgage interest
Correct Answer
A) Late charges, interest, and collection costs



Question 11
What is the deadline to serve a written claim and procedures statement on the
opposing party after filing it with the Division?
Choose only ONE best answer.
A) 30 days
B) 45 days
C) 60 days
D) 10 days
Correct Answer
B) 45 days



Question 12
Financial statements must be prepared using which accounting basis?
Choose only ONE best answer.
A) Cash basis
B) Accrual basis
C) Modified cash basis
D) Income tax basis
Correct Answer
B) Accrual basis




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