Montana Property Question and Answer [2026] |
UPDATED ACTUAL Exam | 100% Verified Answers
• Downsizing -✓✓ What is a disadvantage of working as an employee manager?
• to gain expertise -✓✓ Why would owners hire property managers?
• It's the right way to do business -✓✓ Why should a PM be MOST concerned about
ethics?
• Industrial, Commercial, Residential, and Special Purpose -✓✓ What are the 4 major
classifications of real estate?
• False -✓✓ Knowledge of the owner's long-term goals is of little value to the property
manager.
• True -✓✓ High-tech companies often locate near universities in incubator spaces.
• True -✓✓ Loft buildings are often old multistory manufacturing buildings that have
been converted into office space, residential, and storage space.
• False -✓✓ Property managers do not need to be involved in community activities.
• False -✓✓ Slumlords are owners who pour money back into older properties.
• True -✓✓ The oldest professional organization of property managers is the Building
Owners and Managers Association.
• down payment, equity cash flow, equity reversion
property purchase price, net operating income, reversion
mortgage amount, mortgage debt service, loan balance
mortgage amount, equity cash flow, reversion -✓✓ What are the components of the
cash flow for the mortgage position?
• False -✓✓ A Certified Property Manager (CPM) is a member of the National Apartment
Association.
• True -✓✓ Ethical behavior is often considered the equivalent of fairness and putting
the client's interest ahead of the manager's
• False -✓✓ The primary function of a property manager is to extract as much money as
possible from the managed property.
,• True -✓✓ The automobile made it possible to develop suburbs a long distance from
the city center.
• generate the greatest income for owner -✓✓ The primary function of the property
manager is to
• invention of steel frame buildings and elevators -✓✓ One of the factors that has
contributed to the development of property management is the
• Registered Apartment Manager (RAM) -✓✓ The oldest residential property
management certification program in the United States and which is HUD-approved is
• Office Buildings -✓✓ Commercial real estate includes
• Residential -✓✓ The largest demand for the services of the professional property
manager is found in what type of property?
• True -✓✓ One business cycle consists of expansion, recession, contraction, and
revival.
• False: Business cycles are recurrent but not periodic -✓✓ Long-term business cycles
occur regularly once a year.
• False. Conditions that effect long-term movements are the result of population
growths, technological breakthroughs, the rate of savings and investment, and the use
of natural resources. -✓✓ Hurricanes and terrorist attacks are considered part of long-
term movements.
• True -✓✓ The management plan considers the surrounding area, the subject property,
and the owner's goals.
• False. Lots of various factors can effect real estate, such as population trends,
demographics of the population, local government action, ratings of schools in the area,
etc -✓✓ Real estate is not generally influenced by outside market forces.
• True -✓✓ When taking over a new property, the manager should begin by reading all
the existing leases.
• False. Owners' goals vary widely among the individual, corporate, fiduciary, and
government owners. -✓✓ Owners of rental properties usually have similar goals and
interests.
• True -✓✓ An optimum rent may have to be adjusted to reflect the advantages and
disadvantages of the subject property.
, • False -✓✓ The amount of money that is available for use after paying expenses and
the debt service is called reserve funds.
• Exchange of goods between buyers and sellers -✓✓ Which of the following BEST
describes a market?
• Expansion, recession, contraction, and revival -✓✓ The four phases of the business
cycle are
• no website -✓✓ A bad website is worse than
• Signs are still the most effective methods of advertising the availability of residential,
office, and retail properties. -✓✓ What is still the most effective methods of advertising
residential property?
• For Rent -✓✓ Although newspaper readership is down, many prospective tenants do,
in fact, consult the _______ section in the newspaper when they are looking.
• visual -✓✓ Display ads carry greater _____ impact than classifieds.
• classified and display ads -✓✓ Newspaper advertising is divided into which types?
• expensive -✓✓ Radio advertising is
• television -✓✓ The type of property and available budget will obviously have a great
impact on any decision regarding the use of __________.
• False. The first step is the have a well-designed advertising promotional campaign -
✓✓ The first step in any advertising campaign is to design a display ad.
• True -✓✓ One of the greatest influences on the marketing strategy is how much
money the owner has to spend on advertising.
• False -✓✓ Tenants are rarely influenced by the reputation of the manager or the
property.
• True -✓✓ Property managers can utilize the efforts of other agents by distributing
brochures and advertising pieces emphasizing cooperation.
• True -✓✓ Before getting into financial qualifications, the manager should ask how
much space the prospect needs.
UPDATED ACTUAL Exam | 100% Verified Answers
• Downsizing -✓✓ What is a disadvantage of working as an employee manager?
• to gain expertise -✓✓ Why would owners hire property managers?
• It's the right way to do business -✓✓ Why should a PM be MOST concerned about
ethics?
• Industrial, Commercial, Residential, and Special Purpose -✓✓ What are the 4 major
classifications of real estate?
• False -✓✓ Knowledge of the owner's long-term goals is of little value to the property
manager.
• True -✓✓ High-tech companies often locate near universities in incubator spaces.
• True -✓✓ Loft buildings are often old multistory manufacturing buildings that have
been converted into office space, residential, and storage space.
• False -✓✓ Property managers do not need to be involved in community activities.
• False -✓✓ Slumlords are owners who pour money back into older properties.
• True -✓✓ The oldest professional organization of property managers is the Building
Owners and Managers Association.
• down payment, equity cash flow, equity reversion
property purchase price, net operating income, reversion
mortgage amount, mortgage debt service, loan balance
mortgage amount, equity cash flow, reversion -✓✓ What are the components of the
cash flow for the mortgage position?
• False -✓✓ A Certified Property Manager (CPM) is a member of the National Apartment
Association.
• True -✓✓ Ethical behavior is often considered the equivalent of fairness and putting
the client's interest ahead of the manager's
• False -✓✓ The primary function of a property manager is to extract as much money as
possible from the managed property.
,• True -✓✓ The automobile made it possible to develop suburbs a long distance from
the city center.
• generate the greatest income for owner -✓✓ The primary function of the property
manager is to
• invention of steel frame buildings and elevators -✓✓ One of the factors that has
contributed to the development of property management is the
• Registered Apartment Manager (RAM) -✓✓ The oldest residential property
management certification program in the United States and which is HUD-approved is
• Office Buildings -✓✓ Commercial real estate includes
• Residential -✓✓ The largest demand for the services of the professional property
manager is found in what type of property?
• True -✓✓ One business cycle consists of expansion, recession, contraction, and
revival.
• False: Business cycles are recurrent but not periodic -✓✓ Long-term business cycles
occur regularly once a year.
• False. Conditions that effect long-term movements are the result of population
growths, technological breakthroughs, the rate of savings and investment, and the use
of natural resources. -✓✓ Hurricanes and terrorist attacks are considered part of long-
term movements.
• True -✓✓ The management plan considers the surrounding area, the subject property,
and the owner's goals.
• False. Lots of various factors can effect real estate, such as population trends,
demographics of the population, local government action, ratings of schools in the area,
etc -✓✓ Real estate is not generally influenced by outside market forces.
• True -✓✓ When taking over a new property, the manager should begin by reading all
the existing leases.
• False. Owners' goals vary widely among the individual, corporate, fiduciary, and
government owners. -✓✓ Owners of rental properties usually have similar goals and
interests.
• True -✓✓ An optimum rent may have to be adjusted to reflect the advantages and
disadvantages of the subject property.
, • False -✓✓ The amount of money that is available for use after paying expenses and
the debt service is called reserve funds.
• Exchange of goods between buyers and sellers -✓✓ Which of the following BEST
describes a market?
• Expansion, recession, contraction, and revival -✓✓ The four phases of the business
cycle are
• no website -✓✓ A bad website is worse than
• Signs are still the most effective methods of advertising the availability of residential,
office, and retail properties. -✓✓ What is still the most effective methods of advertising
residential property?
• For Rent -✓✓ Although newspaper readership is down, many prospective tenants do,
in fact, consult the _______ section in the newspaper when they are looking.
• visual -✓✓ Display ads carry greater _____ impact than classifieds.
• classified and display ads -✓✓ Newspaper advertising is divided into which types?
• expensive -✓✓ Radio advertising is
• television -✓✓ The type of property and available budget will obviously have a great
impact on any decision regarding the use of __________.
• False. The first step is the have a well-designed advertising promotional campaign -
✓✓ The first step in any advertising campaign is to design a display ad.
• True -✓✓ One of the greatest influences on the marketing strategy is how much
money the owner has to spend on advertising.
• False -✓✓ Tenants are rarely influenced by the reputation of the manager or the
property.
• True -✓✓ Property managers can utilize the efforts of other agents by distributing
brochures and advertising pieces emphasizing cooperation.
• True -✓✓ Before getting into financial qualifications, the manager should ask how
much space the prospect needs.
