CAI M-100: 4-1 Community Management ACTUAL UPDATED QUESTIONS AND CORRECT ANSWERS

CAI M-100: 4-1 Community Management ACTUAL UPDATED QUESTIONS AND CORRECT ANSWERS What is a community associaiton manager? - CORRECT ANSWERSA leader, not just an adminstrative staff hired to assist the board. What is the role of the owners in a CA? - CORRECT ANSWERSElection of board of directors. They have voting power to: elect and remove directors, amend any governing documents except board resolutions, and approve special assessments or capital investments. What is the role of the board of directors in a CA? - CORRECT ANSWERSUltimate responsibility for operating the CA on behalf of its owners. They maintain, protect, preserve, and enhance the common areas and the value of the owner's homes and/or units. What is the role of a committee in a CA? - CORRECT ANSWERSAssist the board of directors by providing a broader base of owner involvement and input. What is fiduciary duty? - CORRECT ANSWERSRequires directors to act in the best interests of the community as a whole, and for the benefit of the association. What are the *TWO* components of fiduciary duty? - CORRECT ANSWERS1. Board members are required to avoid conflicts of interest and acting out of self-interest. 2. They are also required to act as reasonable people in managing the association's affairs. What is the board ultimately responsible for? - CORRECT ANSWERSthe management of the associaiton. What are the *FIVE* ways a manager's authority and responsibility are defined and limited by? 1. Governing Documents, 2. Manager's contract, 3. Actions of the board which delegate specific authority and duties, 4. Court cases, 5. State statutes. - CORRECT ANSWERS What is the agency relationship between the board and the manager? - CORRECT ANSWERSThe manager is considered an agent and is required to represent the best interest of the community associaiton (client). What are the *THREE* types of community management? - CORRECT ANSWERS1. Volunteer/Self Management, 2. Associaiton-Employed Manager, 3. Contracted Management. What are the *SIX* types of community managers? - CORRECT ANSWERS1. Portfolio Managers, 2. Onsite Managers, 3. Large-Scale Managers, 4. High-Rise Managers, 5. Managers of Mixed-Use Developments, 6. Managers of Developing Communities