California Real Estate Practice – Exam
Questions and Answers
(1) 1. The real estate marketplace could BEST be described as being
A. homogeneous
B. stratified
C. perfect
D. uninfluenced by emotion -
correct answer ✅B. stratified (based on price)
(1) 2. Most real estate agents are primarily engaged in which area
of activity
A. residential property
B. raw land and lots
C. commercial property
D. development -
correct answer ✅A. residential property
(1) 3. The IRS will treat real estate salespeople as independent
contractors if 3 criteria are met. Which is not a criteria
,California Real Estate Practice – Exam
Questions and Answers
A. The salesperson's reimbursement is solely based on sales, not
hours worked
B. The salesperson represents himself as an independent contractor
when dealing with third parties
C. There is a written contract stating that the salesperson will be
treated as an independent contractor for tax purposes
D. The salesperson is licensed as a real estate agent -
correct answer ✅B. The salesperson represents himself as an
independent contractor when dealing with third parties ( merely
representing oneself as an independent contractor would be a
violation of disclosure requirements and is not considered to be an
IRS criteria)
(1) 4. A broker ordinarily would be liable to salespeople for
A. unemployment compensation
B. workers' compensation
C. Social Security contributions
D. none of these -
correct answer ✅B. workers' compensation (for work related
injuries)
,California Real Estate Practice – Exam
Questions and Answers
(1) 5. In choosing a broker, a new licensee should be LEAST
interested in an office that
A. has a high percentage of successful people
B. has a good library of books, tapes, and videos for training
C. offers 100% commission
D. is a member of a local multiple listing service -
correct answer ✅C. offers 100% commission (new licensees should
remember training is more important than commission split)
(1) 6. The BEST way to learn is to
A. listen to what others say
B. read instructional material
C. watch what others do
D. use the ideas you observe or read about -
correct answer ✅D. use the ideas you observe or read about (by
using ideas, they become yours)
(1) 7. Which of the following statements is true about role-playing
, California Real Estate Practice – Exam
Questions and Answers
A. Role-playing situations are limited only by our own imagination
B. Role-playing can be verbalized or nonverbalized
C. Role-playing exercises can involve more than one person
D. All of these -
correct answer ✅D. All of these
(1) 8. Which statement is an example of a specific goal
A. I will work harder next week
B. I will improve my listing presentation
C. I will make 10 calls tomorrow on for-sale-by-owner ads and
schedule three property showings by Sunday
D. I will learn by observing successful agents -
correct answer ✅C. I will make 10 calls tomorrow on for-sale-by-
owner ads and schedule 3 property showings by Sunday ( exact
goals are measurable )
(1) 9. All of the following will aid you in goal achievement EXCEPT
Questions and Answers
(1) 1. The real estate marketplace could BEST be described as being
A. homogeneous
B. stratified
C. perfect
D. uninfluenced by emotion -
correct answer ✅B. stratified (based on price)
(1) 2. Most real estate agents are primarily engaged in which area
of activity
A. residential property
B. raw land and lots
C. commercial property
D. development -
correct answer ✅A. residential property
(1) 3. The IRS will treat real estate salespeople as independent
contractors if 3 criteria are met. Which is not a criteria
,California Real Estate Practice – Exam
Questions and Answers
A. The salesperson's reimbursement is solely based on sales, not
hours worked
B. The salesperson represents himself as an independent contractor
when dealing with third parties
C. There is a written contract stating that the salesperson will be
treated as an independent contractor for tax purposes
D. The salesperson is licensed as a real estate agent -
correct answer ✅B. The salesperson represents himself as an
independent contractor when dealing with third parties ( merely
representing oneself as an independent contractor would be a
violation of disclosure requirements and is not considered to be an
IRS criteria)
(1) 4. A broker ordinarily would be liable to salespeople for
A. unemployment compensation
B. workers' compensation
C. Social Security contributions
D. none of these -
correct answer ✅B. workers' compensation (for work related
injuries)
,California Real Estate Practice – Exam
Questions and Answers
(1) 5. In choosing a broker, a new licensee should be LEAST
interested in an office that
A. has a high percentage of successful people
B. has a good library of books, tapes, and videos for training
C. offers 100% commission
D. is a member of a local multiple listing service -
correct answer ✅C. offers 100% commission (new licensees should
remember training is more important than commission split)
(1) 6. The BEST way to learn is to
A. listen to what others say
B. read instructional material
C. watch what others do
D. use the ideas you observe or read about -
correct answer ✅D. use the ideas you observe or read about (by
using ideas, they become yours)
(1) 7. Which of the following statements is true about role-playing
, California Real Estate Practice – Exam
Questions and Answers
A. Role-playing situations are limited only by our own imagination
B. Role-playing can be verbalized or nonverbalized
C. Role-playing exercises can involve more than one person
D. All of these -
correct answer ✅D. All of these
(1) 8. Which statement is an example of a specific goal
A. I will work harder next week
B. I will improve my listing presentation
C. I will make 10 calls tomorrow on for-sale-by-owner ads and
schedule three property showings by Sunday
D. I will learn by observing successful agents -
correct answer ✅C. I will make 10 calls tomorrow on for-sale-by-
owner ads and schedule 3 property showings by Sunday ( exact
goals are measurable )
(1) 9. All of the following will aid you in goal achievement EXCEPT
