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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

1. In regard to the adjusted book value/asset valuation method of valuing a business, which of the following is correct?

A) The adjusted book value method should not be used when the sale of a business is being implemented or is under consideration.
B) A company's adjusted book value should be equal to the actual market value of the business.
C) A company's adjusted book value is entirely unrelated to its net worth.
D) The adjusted book value method takes goodwill into account when establishing the value of a business.

2. Which of the following statements regarding heavy industrial use and light industrial use is correct?

A) Heavy industrial use usually results in less traffic in and out of the heavy industrial zone.
B) Light industrial use usually results in more noise and heavier traffic.
C) Heavy industrial use can produce more pollution than other commercial activities.
D) Clay production is an example of light industrial use.

3. Which of the following is a correct statement regarding a design-build arrangement in commercial real estate?

A) A design-build arrangement is commonly associated with a seller's market.
B) A design-build arrangement requires the buyer to acquire suitable land and construct a building themselves.
C) A design-build arrangement is a sale/leaseback arrangement.
D) A design-build arrangement means the buyer will only buy the property if the landowner builds a building to the buyer's specifications.

4. A buyer client is discussing zoning bylaws of the municipality in relation to an industrial development site with their salesperson. Which of the following is NOT a correct statement with respect to zoning bylaws?

A) Zoning bylaws specify the permitted land uses throughout a municipality.
B) New commercial construction and redevelopment must comply with zoning bylaws.
C) Municipal zoning bylaws overrule all other laws with respect to land uses and issuance ofbuilding permits in Ontario.
D) Municipalities have zoning bylaws that divide the city into different land uses or zones.

5. A salesperson is helping a buyer identify their needs and property requirements to select an appropriate office property and they are discussing the office layout. Which of the following is NOTa layout consideration?

A) Storage
B) Kitchens/lunchrooms
C) Fitting rooms
D) Boardrooms, private offices, and workstations

Solutions: