M-100 Community Association Management
Exam Review Questions and Answers 100%
Verified 2025/2026
QUESTION
True or false. The role of the professional community association manager is to make all
decisions for the association and to delegate information-gathering and fact-finding support to
the board of directors.
Answer:
False
The professional community association manager is charged with assisting the board of directors'
decision making process by means of providing information-gathering and fact-finding support,
implementing the decisions of the board; and administering the services, programs, and
operations of the community association within the policies and guidelines set by the board.
QUESTION
In which of the following forms of community association management is the association
managed by the board itself or by committees under the direction of the board?
a. management company
b. volunteer or self-management c. association-employed manager
d. municipal management
Answer:
b. volunteer or self-management
Self-managed community associations make up a majority of all associations in the United
States; approximately 150,000 self-managed community associations currently exist in the U.S.
In self managed associations, the board itself is re- sponsible for all community association
functions, including maintaining accounting records, preparing budgets, collecting dues, and
staying informed about association resources and best practices.
,QUESTION
True or false. An increase in assessment delinquencies that is not due to a poor economy may be
an example of a warning sign of a weak management situation.
Answer:
True
When assessment delinquencies increase, the manager should investigate the reasons for the
increase as soon as possible and as objectively as he or she can. In addition, if the demands of the
community association and the board of directors are unreasonable or exceed the manager's
ability to perform the required services, it is the manager's responsibility to communicate this to
the board before it creates a weak management situation.
QUESTION
Complete the following sentence: A is a statement of goals and objectives
approved by the board that includes the yearly cycle
of tasks that management should perform on the community association's behalf.
a. management audit
b. management contract c. management plan
d. employment agreement
Answer:
c. management plan
Typically, a management plan includes tasks that address the community association's
governance, business, and community aspects. Managers should have a management plan so
both they and their boards are clear on what is expected.
In most instances, it will be up to the manager to propose a plan to the board
for approval. Managers should set goals for the year in relation to the community association's
budget.
QUESTION
True or false. It is ethically acceptable for a professional community association manager to
arrange for a kickback for giving a contractor an association contract.
Answer:
False
,The manager of a community association has a professional duty to avoid attempting to make
any secret profits when acting on the community's behalf. Arranging for a kickback for giving a
contractor an association contract—without disclosing relation- ship to the board—constitutes
making secret profits and is ethically unacceptable. Managers should review and consult the CAI
codes of ethics. The Professional Community Association Manager (PCAM) code of ethics sets
forth the general and technical standards for integrity and objectivity, professional courtesy,
conflict of interest, use of client funds, and limitations of practice.
QUESTION
Reasons for establishing community rules and architectural guidelines include each of the
following EXCEPT:
a. There is the need to create a sense of fairness and equity among residents. b. In contemporary
society, people are more likely to question and challenge authority.
c. In cases where rules have been poorly developed or enforced, the courts are ruling against
community associations.
d. Fines imposed on residents who break community rules are frequently the primary source of
association income.
Answer:
d. Fines imposed on residents who break community rules are frequently the primary source of
association income.
Careful rule making and enforcement are essential for community associations. Rules should
never be passed simply to collect income for the association—they must be necessary and
intended to contribute to the betterment of the community.
QUESTION
True or false. According to the general hierarchy of authority for operating community
associations, rules and regulations take precedence over the articles of incorporation.
Answer:
False
The hierarchy of authority means that rules and architectural guidelines may not contradict or be
in conflict with the legal sources that take precedence over them. Although rules and
architectural guidelines are lower in the hierarchy of authority for community associations, they
may clarify and expand a community's governing documents—but may not conflict with the
other governing documents, such as the articles of incorporation.
, QUESTION
Which of the following is an example of an architectural guideline?
a. pets b. noise
c. fencing
d. parking
Answer:
c. fencing
An architectural guideline is a rule that applies to the appearance of an owner's lot
or the exterior of his or her unit or improvements, such as fencing. A rule is a specific statement
of required behavior whose violation carries a penalty. Pets, noise, and parking are all examples
of areas that often prompt community association rules.
QUESTION
Each of the following are benefits to using the resolution process to adopt rules EXCEPT:
a. Provides an oral record of all rules made
b. Protects owners from arbitrary board actions
c. Protects the community from charges that could result in inoperable rules d. Provides for
consistency in making and wording rules
Answer:
There are several benefits to using the resolution process to adopt rules, as opposed to using the
simpler process of making motions. Among these benefits is that it provides a formal, written
record of all rules made.
QUESTION
Each of the following are sections of a resolution EXCEPT:
a. Authority b. Purpose
c. Scope and Intent
d. Self help
Exam Review Questions and Answers 100%
Verified 2025/2026
QUESTION
True or false. The role of the professional community association manager is to make all
decisions for the association and to delegate information-gathering and fact-finding support to
the board of directors.
Answer:
False
The professional community association manager is charged with assisting the board of directors'
decision making process by means of providing information-gathering and fact-finding support,
implementing the decisions of the board; and administering the services, programs, and
operations of the community association within the policies and guidelines set by the board.
QUESTION
In which of the following forms of community association management is the association
managed by the board itself or by committees under the direction of the board?
a. management company
b. volunteer or self-management c. association-employed manager
d. municipal management
Answer:
b. volunteer or self-management
Self-managed community associations make up a majority of all associations in the United
States; approximately 150,000 self-managed community associations currently exist in the U.S.
In self managed associations, the board itself is re- sponsible for all community association
functions, including maintaining accounting records, preparing budgets, collecting dues, and
staying informed about association resources and best practices.
,QUESTION
True or false. An increase in assessment delinquencies that is not due to a poor economy may be
an example of a warning sign of a weak management situation.
Answer:
True
When assessment delinquencies increase, the manager should investigate the reasons for the
increase as soon as possible and as objectively as he or she can. In addition, if the demands of the
community association and the board of directors are unreasonable or exceed the manager's
ability to perform the required services, it is the manager's responsibility to communicate this to
the board before it creates a weak management situation.
QUESTION
Complete the following sentence: A is a statement of goals and objectives
approved by the board that includes the yearly cycle
of tasks that management should perform on the community association's behalf.
a. management audit
b. management contract c. management plan
d. employment agreement
Answer:
c. management plan
Typically, a management plan includes tasks that address the community association's
governance, business, and community aspects. Managers should have a management plan so
both they and their boards are clear on what is expected.
In most instances, it will be up to the manager to propose a plan to the board
for approval. Managers should set goals for the year in relation to the community association's
budget.
QUESTION
True or false. It is ethically acceptable for a professional community association manager to
arrange for a kickback for giving a contractor an association contract.
Answer:
False
,The manager of a community association has a professional duty to avoid attempting to make
any secret profits when acting on the community's behalf. Arranging for a kickback for giving a
contractor an association contract—without disclosing relation- ship to the board—constitutes
making secret profits and is ethically unacceptable. Managers should review and consult the CAI
codes of ethics. The Professional Community Association Manager (PCAM) code of ethics sets
forth the general and technical standards for integrity and objectivity, professional courtesy,
conflict of interest, use of client funds, and limitations of practice.
QUESTION
Reasons for establishing community rules and architectural guidelines include each of the
following EXCEPT:
a. There is the need to create a sense of fairness and equity among residents. b. In contemporary
society, people are more likely to question and challenge authority.
c. In cases where rules have been poorly developed or enforced, the courts are ruling against
community associations.
d. Fines imposed on residents who break community rules are frequently the primary source of
association income.
Answer:
d. Fines imposed on residents who break community rules are frequently the primary source of
association income.
Careful rule making and enforcement are essential for community associations. Rules should
never be passed simply to collect income for the association—they must be necessary and
intended to contribute to the betterment of the community.
QUESTION
True or false. According to the general hierarchy of authority for operating community
associations, rules and regulations take precedence over the articles of incorporation.
Answer:
False
The hierarchy of authority means that rules and architectural guidelines may not contradict or be
in conflict with the legal sources that take precedence over them. Although rules and
architectural guidelines are lower in the hierarchy of authority for community associations, they
may clarify and expand a community's governing documents—but may not conflict with the
other governing documents, such as the articles of incorporation.
, QUESTION
Which of the following is an example of an architectural guideline?
a. pets b. noise
c. fencing
d. parking
Answer:
c. fencing
An architectural guideline is a rule that applies to the appearance of an owner's lot
or the exterior of his or her unit or improvements, such as fencing. A rule is a specific statement
of required behavior whose violation carries a penalty. Pets, noise, and parking are all examples
of areas that often prompt community association rules.
QUESTION
Each of the following are benefits to using the resolution process to adopt rules EXCEPT:
a. Provides an oral record of all rules made
b. Protects owners from arbitrary board actions
c. Protects the community from charges that could result in inoperable rules d. Provides for
consistency in making and wording rules
Answer:
There are several benefits to using the resolution process to adopt rules, as opposed to using the
simpler process of making motions. Among these benefits is that it provides a formal, written
record of all rules made.
QUESTION
Each of the following are sections of a resolution EXCEPT:
a. Authority b. Purpose
c. Scope and Intent
d. Self help
