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PREX-1060A Questions Answers, PREX-1060A Learning Mode

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Humber College Exam 4: Invigilated Theory Exam Sample Questions (Q28-Q33):

NEW QUESTION # 28
Which of the following statements regarding Building Owners and Managers Association (BOMA) standards is correct?

A. The BOMA standards provide methods of measuring industrial buildings only.
B. The BOMA standards provide procedures to measure rentable areas only.
C. The BOMA standards are complex.
D. The BOMA standards provide methods of measuring office buildings only.

Answer: D

NEW QUESTION # 29
Which of the following accurately describes a landlord's commercial property insurance coverage?

A. A landlord's commercial property insurance policy should cover the loss of rental income in the event of a fire, for the period the premises is vacant while repairs are made.
B. A landlord's commercial property insurance policy should cover the loss of the tenant's assets due to theft from their employees or third parties.
C. A landlord's commercial property insurance policy should cover the loss of the tenant's assets and income due to business interruption as the result of a fire or flood.
D. A landlord's commercial property insurance policy should cover the loss of the property's equity due to a change in market conditions or to a recession.

Answer: A

NEW QUESTION # 30
When calculating the total purchase price of farmland with improvements on it, which of the following items is NOT included?

A. Residence
B. Fixed equipment
C. Goodwill
D. Barns and sheds

Answer: C

NEW QUESTION # 31
Obtaining the size and boundaries of a commercial condominium unit is an important task for a salesperson.
Which of the following statements regarding this task is NOT correct?

A. Space should be measured in accordance with BOMA standards.
B. An architect can be hired to measure the space.
C. The original plans should be used to determine the size of a unit.
D. An Ontario Land Surveyor can be hired to measure the space.

Answer: C

NEW QUESTION # 32
A first-time investor is looking to purchase a commercial property and asks their salesperson about the gains they can hope to achieve from this type of asset. What should the salesperson explain to their client regarding the purchase of commercial properties as a source of capital growth?

A. The salesperson should explain that the client should always consider being a short-term investor.
B. The salesperson should explain that to achieve capital growth, the client should be a long-term investor.
C. The salesperson should explain that making a commercial property investment is an easy and smooth process that provides good short-term gains.
D. The salesperson should explain that a better return on investment will be achieved with rising interest rates.

Answer: B

NEW QUESTION # 33
......

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