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Humber College Exam 4: Invigilated Theory Sample Questions:
1. A salesperson discusses with a buyer the potential advantages of purchasing brownfields for redevelopment.
What is NOT an advantage for the buyer of a brownfield property?
A) Brownfield properties typically have the advantage of existing infrastructure such as roads, utilities, water/sewer servicing, schools, and transit facilities.
B) Brownfield properties can often be purchased at well below their potential market value.
C) The contaminants in brownfields contain precious metals that can be sold to earn additional income.
D) An owner who rehabilitates a brownfield property can receive tax incentives.
2. A salesperson has several obligations to the buyer when assisting them in the purchase of a commercial condominium unit for their own use. Which of the following is one of those obligations?
A) Advise the buyer to commission a Phase 3 Environmental Site Assessment in addition to their inspection
B) Confirm the buyer's intended use adheres to all municipal zoning requirements
C) Review all documentation and advise the buyer regarding the financial status of the condominium corporation, including the reserve fund
D) Ensure the buyer had the opportunity to fully inspect the financial statements of both the condominium and the seller's business
3. Which of the following practices maintains the stability and durability of a commercial property?
A) Keeping good tenants
B) Replacing old tenants with new tenants that pay much higher rent
C) Delaying improvements to the property to save costs
D) Increasing the base rent and additional rent in a slow economy
4. If a property in Ontario is assessed and valued as farmland by the Municipal Property Assessment Corporation (MPAC), the farmer could receive a 75% tax reduction for municipal taxes if certain conditions are met. Which of the following describes a condition that must be met?
A) They are Canadian citizens or permanent residents of Canada.
B) They submit the appropriate application semi-annually.
C) They carry on a farming business generating a net profit of $100,000.
D) They have a valid harmonized sales tax (HST) registration number under the Excise Tax Act.
5. In regard to the adjusted book value/asset valuation method of valuing a business, which of the following is correct?
A) A company's adjusted book value should be equal to the actual market value of the business.
B) A company's adjusted book value is entirely unrelated to its net worth.
C) The adjusted book value method takes goodwill into account when establishing the value of a business.
D) The adjusted book value method should not be used when the sale of a business is being implemented or is under consideration.
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: B | Question # 3 Answer: A | Question # 4 Answer: D | Question # 5 Answer: C |






