ILLINOIS COMMUNITY ASSOCIATION
MANAGER (CAM) EXAM PRACTICE
QUESTIONS WITH CORRECT ANSWERS
(VERIFIED ANSWERS) PLUS RATIONALES 2026
Q&A | INSTANT DOWNLOAD PDF
1. Which of the following is the primary duty of a community
association manager?
A. Preparing legal documents
B. Managing day-to-day operations of the association
C. Filing taxes for residents
D. Representing owners in court
The CAM is primarily responsible for overseeing daily operations, not
performing legal or tax functions.
2. What is a quorum in the context of a board meeting?
A. The number of votes needed to pass a motion
B. The minimum number of members required to conduct
official business
C. The number of members who oppose a motion
D. The total number of board members
A quorum ensures that decisions are made by a representative group
rather than a small minority.
3. Which document governs the rules and regulations of a
community association?
A. Tax filings
B. State statutes
, C. Declaration and bylaws
D. Meeting minutes
The declaration and bylaws set the framework for rules, responsibilities,
and governance.
4. Reserve funds are used for:
A. Paying employee salaries
B. Major repairs and replacements
C. Monthly utilities
D. Marketing the association
Reserve funds are specifically allocated for long-term maintenance and
capital improvements.
5. What is the primary purpose of a budget in a community
association?
A. To track employee hours
B. To plan for income and expenses for the year
C. To pay state taxes
D. To record board meeting attendance
The budget ensures the association can meet its financial obligations.
6. Special assessments are typically imposed for:
A. Routine maintenance
B. Unexpected large expenses not covered by the budget
C. Employee bonuses
D. Monthly dues
Special assessments cover extraordinary costs that exceed normal
budget allocations.
7. Which financial statement shows the association’s assets,
liabilities, and equity at a specific time?
, A. Income statement
B. Balance sheet
C. Statement of cash flows
D. Budget report
The balance sheet provides a snapshot of financial position at a given
date.
8. How often must community association meetings be held
according to Illinois law?
A. Weekly
B. Monthly
C. Annually
D. Biannually
Illinois law requires at least one official meeting each year for
membership and governance purposes.
9. What is the purpose of a board of directors in a community
association?
A. To represent individual owners in legal matters
B. To oversee the association and make strategic decisions
C. To handle all accounting tasks
D. To enforce criminal law
The board governs and ensures the community operates in accordance
with its governing documents.
10. Conflict of interest for board members occurs when:
A. A member votes on a landscaping decision
B. A member has a personal financial interest in a transaction
C. A member attends a meeting
D. A member reviews meeting minutes
MANAGER (CAM) EXAM PRACTICE
QUESTIONS WITH CORRECT ANSWERS
(VERIFIED ANSWERS) PLUS RATIONALES 2026
Q&A | INSTANT DOWNLOAD PDF
1. Which of the following is the primary duty of a community
association manager?
A. Preparing legal documents
B. Managing day-to-day operations of the association
C. Filing taxes for residents
D. Representing owners in court
The CAM is primarily responsible for overseeing daily operations, not
performing legal or tax functions.
2. What is a quorum in the context of a board meeting?
A. The number of votes needed to pass a motion
B. The minimum number of members required to conduct
official business
C. The number of members who oppose a motion
D. The total number of board members
A quorum ensures that decisions are made by a representative group
rather than a small minority.
3. Which document governs the rules and regulations of a
community association?
A. Tax filings
B. State statutes
, C. Declaration and bylaws
D. Meeting minutes
The declaration and bylaws set the framework for rules, responsibilities,
and governance.
4. Reserve funds are used for:
A. Paying employee salaries
B. Major repairs and replacements
C. Monthly utilities
D. Marketing the association
Reserve funds are specifically allocated for long-term maintenance and
capital improvements.
5. What is the primary purpose of a budget in a community
association?
A. To track employee hours
B. To plan for income and expenses for the year
C. To pay state taxes
D. To record board meeting attendance
The budget ensures the association can meet its financial obligations.
6. Special assessments are typically imposed for:
A. Routine maintenance
B. Unexpected large expenses not covered by the budget
C. Employee bonuses
D. Monthly dues
Special assessments cover extraordinary costs that exceed normal
budget allocations.
7. Which financial statement shows the association’s assets,
liabilities, and equity at a specific time?
, A. Income statement
B. Balance sheet
C. Statement of cash flows
D. Budget report
The balance sheet provides a snapshot of financial position at a given
date.
8. How often must community association meetings be held
according to Illinois law?
A. Weekly
B. Monthly
C. Annually
D. Biannually
Illinois law requires at least one official meeting each year for
membership and governance purposes.
9. What is the purpose of a board of directors in a community
association?
A. To represent individual owners in legal matters
B. To oversee the association and make strategic decisions
C. To handle all accounting tasks
D. To enforce criminal law
The board governs and ensures the community operates in accordance
with its governing documents.
10. Conflict of interest for board members occurs when:
A. A member votes on a landscaping decision
B. A member has a personal financial interest in a transaction
C. A member attends a meeting
D. A member reviews meeting minutes
