Washington Real Estate Practices
Questions and Answers
Lesson 1 - Starting a New Profession - Part 1
Market research should focus on:
A) the competition in your area
B) inventory
C) both
D) neither - Correct Answer ✅ C) both
Feedback:
Correct: Market research should focus on your area and
include the demand for your services, competition, inventory
(quantity, quality, and pricing of homes for sale), and market
trends.
As a real estate professional, the federal government
considers you to be:
A) self-employed
B) independent
C) responsible for your own federal tax withholdings
D) all of the above - Correct Answer ✅ D) all of the above
,Washington Real Estate Practices
Questions and Answers
Feedback:
Correct: You are considered by the federal government to be
self-employed, an independent contractor, and thus
responsible for your own federal tax withholdings.
Which form will a licensed broker receive from a firm to report
earnings to the IRS?
A) 1099
B) 1040
C) Schedule B
D) Schedule T - Correct Answer ✅ A) 1099
Feedback:
Correct: A real-estate firm will generate a 1099 form for the
licensed broker, who will be responsible for reporting the
income and including a copy of the 1099 when filing the 1040
IRS form.
How long do you need to keep financial records for the IRS?
,Washington Real Estate Practices
Questions and Answers
A) 1 year
B) 2 years
C) 7 years
D) always - Correct Answer ✅ C) 7 years
Feedback:
Correct: The IRS can request records going back 7 years.
Which is associated with a business plan?
A) market research
B) capital to tide you over while you build up clientele
C) goals
D) all are - Correct Answer ✅ D) all are
Feedback:
Correct: Market research, capital to tide you over, and goals
are all aspects of a business plan.
, Washington Real Estate Practices
Questions and Answers
Lesson 2 - Correct Answer ✅ Starting a New Profession -
Part 2
All funds and applications must be turned into the firm:
A) within 2 business days
B) within a week
C) within 3 business days
D) neither - Correct Answer ✅ A) within 2 business days
Feedback:
Correct: Client funds must be deposited in the client trust
account the next business day.
The most effective method of acquiring clients is:
A) cold calling
B) purchasing a list of names from the firm
C) word of mouth
D) none of these - Correct Answer ✅ C) word of mouth
Questions and Answers
Lesson 1 - Starting a New Profession - Part 1
Market research should focus on:
A) the competition in your area
B) inventory
C) both
D) neither - Correct Answer ✅ C) both
Feedback:
Correct: Market research should focus on your area and
include the demand for your services, competition, inventory
(quantity, quality, and pricing of homes for sale), and market
trends.
As a real estate professional, the federal government
considers you to be:
A) self-employed
B) independent
C) responsible for your own federal tax withholdings
D) all of the above - Correct Answer ✅ D) all of the above
,Washington Real Estate Practices
Questions and Answers
Feedback:
Correct: You are considered by the federal government to be
self-employed, an independent contractor, and thus
responsible for your own federal tax withholdings.
Which form will a licensed broker receive from a firm to report
earnings to the IRS?
A) 1099
B) 1040
C) Schedule B
D) Schedule T - Correct Answer ✅ A) 1099
Feedback:
Correct: A real-estate firm will generate a 1099 form for the
licensed broker, who will be responsible for reporting the
income and including a copy of the 1099 when filing the 1040
IRS form.
How long do you need to keep financial records for the IRS?
,Washington Real Estate Practices
Questions and Answers
A) 1 year
B) 2 years
C) 7 years
D) always - Correct Answer ✅ C) 7 years
Feedback:
Correct: The IRS can request records going back 7 years.
Which is associated with a business plan?
A) market research
B) capital to tide you over while you build up clientele
C) goals
D) all are - Correct Answer ✅ D) all are
Feedback:
Correct: Market research, capital to tide you over, and goals
are all aspects of a business plan.
, Washington Real Estate Practices
Questions and Answers
Lesson 2 - Correct Answer ✅ Starting a New Profession -
Part 2
All funds and applications must be turned into the firm:
A) within 2 business days
B) within a week
C) within 3 business days
D) neither - Correct Answer ✅ A) within 2 business days
Feedback:
Correct: Client funds must be deposited in the client trust
account the next business day.
The most effective method of acquiring clients is:
A) cold calling
B) purchasing a list of names from the firm
C) word of mouth
D) none of these - Correct Answer ✅ C) word of mouth
