M100 COMMUNITY ASSOCIATION
MANAGEMENT 2025 COMPLETE STUDY
GUIDE & REVIEW OUTLINE || NEW
EDITION
Section 1: Governance & Legal Foundations (Q1-20)
1. What is the primary governing document that creates a community association?
A. Bylaws
B. Declaration (CC&Rs)
C. Rules & Regulations
D. Articles of Incorporation
2. The Bylaws primarily define:
A. Use restrictions for lots.
B. The internal governance structure (meetings, board elections, officers).
C. The architectural standards.
D. The common element descriptions.
3. The board's fiduciary duty includes all EXCEPT:
A. Duty of Care
B. Duty of Loyalty
C. Duty to maximize member profits
D. Duty to act within the scope of authority
4. A proxy is best defined as:
A. A written ballot for an election.
B. Authority given by a member to another person to vote on their behalf at a meeting.
C. A notice of a board meeting.
D. A waiver of assessment dues.
5. The "Business Judgment Rule" protects board members who:
A. Make popular decisions.
B. Act in good faith, with reasonable diligence, and in the best interest of the association.
,C. Always follow the advice of the manager.
D. Avoid consulting with an attorney.
6. Which meeting typically requires advance notice to all members?
A. Board Executive Session
B. Committee Meeting
C. Annual Membership Meeting
D. Emergency Board Meeting
7. The Davis-Stirling Act is the governing law for common interest developments in which
state?
A. Florida
B. California
C. Texas
D. New York
8. A resolution is best described as:
A. A legally recorded document.
B. A formal board motion that sets a policy or rule.
C. An amendment to the Declaration.
D. A contract with a vendor.
9. Which document has the highest legal authority in a community association?
A. Rules & Regulations
B. Bylaws
C. Declaration (CC&Rs)
D. Parliamentary Authority (Robert's Rules)
10. The concept of "Ultra Vires" refers to:
A. Actions taken beyond the legal authority of the corporation.
B. Voting by secret ballot.
C. Approving the annual budget.
D. Conducting a reserve study.
11. A director's conflict of interest should be:
A. Ignored if it's a small contract.
B. Disclosed and the director should abstain from voting.
C. Handled only by the property manager.
D. Voted on by the membership.
,12. Parliamentary procedure is typically used to:
A. Ensure orderly and fair meetings.
B. Write legal contracts.
C. Prepare financial statements.
D. Enforce architectural guidelines.
13. The right of "First Refusal" usually allows the association to:
A. Purchase a unit before it is sold to an outside party.
B. Purchase a unit before it is sold to an outside party.
C. Reject any new owner without cause.
D. Set the sale price for a unit.
14. Which committee is often mandatory by law or governing documents?
A. Social Committee
B. Architectural Review Committee (ACC/ARC)
C. Welcome Committee
D. Landscape Committee
15. The "Open Meeting Act" generally requires:
A. All committee meetings to be secret.
B. Meetings of the board to be open to members, with certain exceptions.
C. All member emails to be public record.
D. The manager to live on-site.
16. A quorum for a membership meeting is:
A. A simple majority of the board.
B. The number of members required to be present (in person or by proxy) to conduct business.
C. The number of members required to be present (in person or by proxy) to conduct
business.
D. Unnecessary if the board is present.
17. An amendment to the Declaration typically requires:
A. A board vote.
B. A manager's approval.
C. A supermajority vote of the membership.
D. Only a court order.
18. The board's power to levy regular assessments comes from:
A. The property manager.
B. State law only.
, C. The Declaration and Bylaws.
D. A vote of the members every year.
19. A "managing agent" is:
A. Always a volunteer board member.
B. The licensed community association manager or management company.
C. The association's attorney.
D. The head of the ACC.
20. Indemnification clauses in association documents often provide:
A. Legal protection for members who violate rules.
B. Legal protection for directors/officers acting in good faith.
C. Insurance for all common elements.
D. Waiver of assessments for board members.
Section 2: Financial Management (Q21-40)
21. The operating budget funds:
A. Day-to-day expenses (utilities, landscaping, management).
B. Only long-term repairs.
C. Legal reserves.
D. Capital improvements.
22. What is a "reserve fund"?
A. A slush fund for board discretionary spending.
B. Money set aside for the repair and replacement of major common elements. ✔
C. The operating account contingency.
D. An investment account for member profits.
23. A reserve study should be updated:
A. Never, it's a one-time requirement.
B. Only when there is a special assessment.
C. Periodically (e.g., annually reviewed, updated every 3-5 years). ✔
D. Only when property values fall.
24. A "special assessment" is:
A. Part of the regular monthly dues.
B. A one-time charge to members for an unexpected or unbudgeted expense. ✔
MANAGEMENT 2025 COMPLETE STUDY
GUIDE & REVIEW OUTLINE || NEW
EDITION
Section 1: Governance & Legal Foundations (Q1-20)
1. What is the primary governing document that creates a community association?
A. Bylaws
B. Declaration (CC&Rs)
C. Rules & Regulations
D. Articles of Incorporation
2. The Bylaws primarily define:
A. Use restrictions for lots.
B. The internal governance structure (meetings, board elections, officers).
C. The architectural standards.
D. The common element descriptions.
3. The board's fiduciary duty includes all EXCEPT:
A. Duty of Care
B. Duty of Loyalty
C. Duty to maximize member profits
D. Duty to act within the scope of authority
4. A proxy is best defined as:
A. A written ballot for an election.
B. Authority given by a member to another person to vote on their behalf at a meeting.
C. A notice of a board meeting.
D. A waiver of assessment dues.
5. The "Business Judgment Rule" protects board members who:
A. Make popular decisions.
B. Act in good faith, with reasonable diligence, and in the best interest of the association.
,C. Always follow the advice of the manager.
D. Avoid consulting with an attorney.
6. Which meeting typically requires advance notice to all members?
A. Board Executive Session
B. Committee Meeting
C. Annual Membership Meeting
D. Emergency Board Meeting
7. The Davis-Stirling Act is the governing law for common interest developments in which
state?
A. Florida
B. California
C. Texas
D. New York
8. A resolution is best described as:
A. A legally recorded document.
B. A formal board motion that sets a policy or rule.
C. An amendment to the Declaration.
D. A contract with a vendor.
9. Which document has the highest legal authority in a community association?
A. Rules & Regulations
B. Bylaws
C. Declaration (CC&Rs)
D. Parliamentary Authority (Robert's Rules)
10. The concept of "Ultra Vires" refers to:
A. Actions taken beyond the legal authority of the corporation.
B. Voting by secret ballot.
C. Approving the annual budget.
D. Conducting a reserve study.
11. A director's conflict of interest should be:
A. Ignored if it's a small contract.
B. Disclosed and the director should abstain from voting.
C. Handled only by the property manager.
D. Voted on by the membership.
,12. Parliamentary procedure is typically used to:
A. Ensure orderly and fair meetings.
B. Write legal contracts.
C. Prepare financial statements.
D. Enforce architectural guidelines.
13. The right of "First Refusal" usually allows the association to:
A. Purchase a unit before it is sold to an outside party.
B. Purchase a unit before it is sold to an outside party.
C. Reject any new owner without cause.
D. Set the sale price for a unit.
14. Which committee is often mandatory by law or governing documents?
A. Social Committee
B. Architectural Review Committee (ACC/ARC)
C. Welcome Committee
D. Landscape Committee
15. The "Open Meeting Act" generally requires:
A. All committee meetings to be secret.
B. Meetings of the board to be open to members, with certain exceptions.
C. All member emails to be public record.
D. The manager to live on-site.
16. A quorum for a membership meeting is:
A. A simple majority of the board.
B. The number of members required to be present (in person or by proxy) to conduct business.
C. The number of members required to be present (in person or by proxy) to conduct
business.
D. Unnecessary if the board is present.
17. An amendment to the Declaration typically requires:
A. A board vote.
B. A manager's approval.
C. A supermajority vote of the membership.
D. Only a court order.
18. The board's power to levy regular assessments comes from:
A. The property manager.
B. State law only.
, C. The Declaration and Bylaws.
D. A vote of the members every year.
19. A "managing agent" is:
A. Always a volunteer board member.
B. The licensed community association manager or management company.
C. The association's attorney.
D. The head of the ACC.
20. Indemnification clauses in association documents often provide:
A. Legal protection for members who violate rules.
B. Legal protection for directors/officers acting in good faith.
C. Insurance for all common elements.
D. Waiver of assessments for board members.
Section 2: Financial Management (Q21-40)
21. The operating budget funds:
A. Day-to-day expenses (utilities, landscaping, management).
B. Only long-term repairs.
C. Legal reserves.
D. Capital improvements.
22. What is a "reserve fund"?
A. A slush fund for board discretionary spending.
B. Money set aside for the repair and replacement of major common elements. ✔
C. The operating account contingency.
D. An investment account for member profits.
23. A reserve study should be updated:
A. Never, it's a one-time requirement.
B. Only when there is a special assessment.
C. Periodically (e.g., annually reviewed, updated every 3-5 years). ✔
D. Only when property values fall.
24. A "special assessment" is:
A. Part of the regular monthly dues.
B. A one-time charge to members for an unexpected or unbudgeted expense. ✔
