Property Management ACTUAL UPDATED
Exam Questions and CORRECT Answers
Which of the following contributed to the escalation of property management as a profession
during the early 20th century? - CORRECT ANSWER - All of the choices apply
In addition to the stock market crash of 1929, the __________ marked another time in American
history when record numbers of properties foreclosed. - CORRECT ANSWER - savings
and loan crisis of the late 1980s
If a property manager deals with properties that conduct retail activity, what real estate market
does a property - CORRECT ANSWER - Commercial
Which of the following is a type of real estate ownership in which a person has an individual unit
and shared use of common areas and facilities of the property? - CORRECT ANSWER -
Common interest development
Fair housing and anti-discrimination laws prevent property managers from discriminating against
prospective tenants based on: - CORRECT ANSWER - all of the choices apply.
The __________ Act regulates the relationship between residential property owners/managers
and their tenants. The Act has a variety of provisions such as, handling and returning security
deposits, owners/managers right to re-enter the property, and retaliation provisions. - CORRECT
ANSWER - Uniform Residential Landlord and Tenant
Unlike with residential rentals, lease agreements for __________ typically contain a
"Compliance with Laws" clause that requires the tenant to be responsible for noncompliance that
results from the tenant's use of or alterations to the property. - CORRECT ANSWER -
commercial rentals
What organization issues the Certified Property Manager (CPM) certification? - CORRECT
ANSWER - Institute of Real Estate Management
,All of the following are duties of on-site managers, except: - CORRECT ANSWER -
suggesting alternative property uses to increase income, such as converting apartments to
condominiums.
Measuring standards developed by the __________ provide guidance for measuring the floor
areas of office buildings, retail space, warehouses, and other types of properties. - CORRECT
ANSWER - Building Owners and Managers Association International (BOMA)
A property management company will choose the types of marketing and maintenance issuers
that: - CORRECT ANSWER - are beneficial to the property type chosen.
Which of the following describes the acronym FBN? - CORRECT ANSWER - Fictitious
Business Name
All of the following are examples of tangible personal property used in business, except: -
CORRECT ANSWER - patents
What is an account managed by one party for the benefit of another in a banking institution
authorized to do business in the state? - CORRECT ANSWER - A trust account
When federal and state standards conflict, which one will typically apply to laws dealing with
employment issues? - CORRECT ANSWER - The rules that provide the most protection
for employees.
What contains all the policies, procedures and work instructions that make up the way a
company carries out all the functions of its business? - CORRECT ANSWER - A policy
and procedure manual or employee handbook
What is the amount of money necessary to carry out daily activities? - CORRECT
ANSWER - Working capital
, A property manager should have electronic files:The specialization of serving the needs of
clients in a particular geographical area is known as: - CORRECT ANSWER - backed up,
with the back-up files stored off-site.
The specialization of serving the needs of clients in a particular geographical area is known as: -
CORRECT ANSWER - geographic segmentation.
Which of the following statements is not true regarding fees charged by a property management
company? - CORRECT ANSWER - A management company usually charges a flat fee to
manage rental property.
What do the courts use to decide whether an agent has used reasonable skill and care in a
disputed transaction? - CORRECT ANSWER - A standard of care
Which of the following will have a direct effect on an investor's yield expectations? - CORRECT
ANSWER - His or her risk tolerance
All of the following are typical goals most real estate investors have, except: - CORRECT
ANSWER - dividend yields.
The management agreement should clearly define management's responsibilities. What is the
basic scope of authority given to a property manager? - CORRECT ANSWER - Collect
rent/pay expenses/manage daily operations
When a party fails to perform on part or all of the terms and conditions of a contract without a
legal excuse, it is known as a(n): - CORRECT ANSWER - breach of contract.
The working capital fund is the amount of money needed to meet: - CORRECT
ANSWER - immediate obligations.
Tom is taking over management of an apartment complex. He has the number and types of units,
rent roll and rental rates, accounts payable, and existing leases. What should he do to create a
Exam Questions and CORRECT Answers
Which of the following contributed to the escalation of property management as a profession
during the early 20th century? - CORRECT ANSWER - All of the choices apply
In addition to the stock market crash of 1929, the __________ marked another time in American
history when record numbers of properties foreclosed. - CORRECT ANSWER - savings
and loan crisis of the late 1980s
If a property manager deals with properties that conduct retail activity, what real estate market
does a property - CORRECT ANSWER - Commercial
Which of the following is a type of real estate ownership in which a person has an individual unit
and shared use of common areas and facilities of the property? - CORRECT ANSWER -
Common interest development
Fair housing and anti-discrimination laws prevent property managers from discriminating against
prospective tenants based on: - CORRECT ANSWER - all of the choices apply.
The __________ Act regulates the relationship between residential property owners/managers
and their tenants. The Act has a variety of provisions such as, handling and returning security
deposits, owners/managers right to re-enter the property, and retaliation provisions. - CORRECT
ANSWER - Uniform Residential Landlord and Tenant
Unlike with residential rentals, lease agreements for __________ typically contain a
"Compliance with Laws" clause that requires the tenant to be responsible for noncompliance that
results from the tenant's use of or alterations to the property. - CORRECT ANSWER -
commercial rentals
What organization issues the Certified Property Manager (CPM) certification? - CORRECT
ANSWER - Institute of Real Estate Management
,All of the following are duties of on-site managers, except: - CORRECT ANSWER -
suggesting alternative property uses to increase income, such as converting apartments to
condominiums.
Measuring standards developed by the __________ provide guidance for measuring the floor
areas of office buildings, retail space, warehouses, and other types of properties. - CORRECT
ANSWER - Building Owners and Managers Association International (BOMA)
A property management company will choose the types of marketing and maintenance issuers
that: - CORRECT ANSWER - are beneficial to the property type chosen.
Which of the following describes the acronym FBN? - CORRECT ANSWER - Fictitious
Business Name
All of the following are examples of tangible personal property used in business, except: -
CORRECT ANSWER - patents
What is an account managed by one party for the benefit of another in a banking institution
authorized to do business in the state? - CORRECT ANSWER - A trust account
When federal and state standards conflict, which one will typically apply to laws dealing with
employment issues? - CORRECT ANSWER - The rules that provide the most protection
for employees.
What contains all the policies, procedures and work instructions that make up the way a
company carries out all the functions of its business? - CORRECT ANSWER - A policy
and procedure manual or employee handbook
What is the amount of money necessary to carry out daily activities? - CORRECT
ANSWER - Working capital
, A property manager should have electronic files:The specialization of serving the needs of
clients in a particular geographical area is known as: - CORRECT ANSWER - backed up,
with the back-up files stored off-site.
The specialization of serving the needs of clients in a particular geographical area is known as: -
CORRECT ANSWER - geographic segmentation.
Which of the following statements is not true regarding fees charged by a property management
company? - CORRECT ANSWER - A management company usually charges a flat fee to
manage rental property.
What do the courts use to decide whether an agent has used reasonable skill and care in a
disputed transaction? - CORRECT ANSWER - A standard of care
Which of the following will have a direct effect on an investor's yield expectations? - CORRECT
ANSWER - His or her risk tolerance
All of the following are typical goals most real estate investors have, except: - CORRECT
ANSWER - dividend yields.
The management agreement should clearly define management's responsibilities. What is the
basic scope of authority given to a property manager? - CORRECT ANSWER - Collect
rent/pay expenses/manage daily operations
When a party fails to perform on part or all of the terms and conditions of a contract without a
legal excuse, it is known as a(n): - CORRECT ANSWER - breach of contract.
The working capital fund is the amount of money needed to meet: - CORRECT
ANSWER - immediate obligations.
Tom is taking over management of an apartment complex. He has the number and types of units,
rent roll and rental rates, accounts payable, and existing leases. What should he do to create a
