Property Management Questions and Answers Already Passed

Property Management Questions and Answers Already Passed One business cycle consists of expansion, recession, contraction, and revival True Long-term business cycles occur regularly once a year. False Hurricanes and terrorist attacks are considered part of long-term movements. False The management plan considers the surrounding area, the subject property, and the owner's goals. True Real estate is not generally influenced by outside market forces. False When taking over a new property, the manager should begin by reading all the existing leases. True The outward appearance of the building is often referred to as "curb appeal." True Owners of rental properties usually have similar goals and interests. False An optimum rent may have to be adjusted to reflect the advantages and disadvantages of the subject property. True The amount of money that is available for use after paying expenses and the debt service is called reserve funds. False Which of the following BEST describes a market? A.) Expansion and contraction phases B.) Seasonal variations C.) Cyclic and random changes D.) Exchange of goods between buyers and sellers A.) Exchange of goods and services between buyers and sellers The four phases of the business cycle are: A.) inflation, expansion, growth, contraction. B.) expansion, growth, contraction, revival. C.) expansion, recession, contraction, revival. D.) contraction, growth, revival, contraction. C.) expansion, recession, contraction, revival. Long-term movements in the real estate industry may be those in the general economy A.) opposite B.) same as C.) longer than D.) shorter than D.) shorter than Which of the following would be one of the more indirect government actions to influence the economy? A.) Government decreasing taxes B.) Downturn in general business economy C.) Closure of defense facilities D.) Major plant closing C.) Closure of defense facilities The residential rental market corresponds roughly to: A.) cycles in multifamily housing starts. B.) commercial properties. C.) industrial property. D.) construction of new shopping centers. A.) cycles in multifamily housing starts. The financial and operational strategy for the ongoing management of a property is the: A.) property manager. B.) evaluation of all properties in the area. C.) management plan. D.) five-year forecast. C.) management plan. A property manager can measure economic trends through all of the following EXCEPT: A.) regional market analysis. B.) neighborhood market analysis. C.) supply and demand. D.) operating budget D.) operating budget If a property manager wants to find out if occupancy levels for a given type of property are rising or falling, the property manager should: A.) call the local chamber of commerce. B.) survey comparable properties. C.) check with the census bureau. D.) consult the Consumer Price Index (CPI) B.) survey comparable properties. More available units than tenants indicates; A.) occupancy trends. B.) curb appeal. C.) economic oversupply. D.) technical oversupply. D.) technical oversupply. Which of the following is the first step in the management plan? A.) Prepare five-year forecast B.) Prepare an operating budget C.) Establish optimum rents D.) Predict anticipated revenue Find The Answer On Page: 27 B.) Prepare an operating budget The law of agency requires the manager to: A: deposit the property's tenant funds in the manager's business account B: obey the owner's every instruction, even if it requires unethical behavior. C: maintain confidentiality and loyalty to the owner's best interest. D: act with self-interest in managing the property C: maintain confidentiality and loyalty to the owner's best interest. A property manager acting as an agent: A: need not maintain a separate bank account for the owner's funds. B: has the power to mortgage the property. C: owns the duties of care, loyalty, obedience, accounting, and disclosure to the principal D: has the exclusive right to sell the property C: owns the