PREX-1060A Practice Exam Questions and Answers

A.  

Clay production is an example of light industrial use.

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.  

Heavy industrial use usually results in less traffic in and out of the heavy industrial zone.

A.  

An owner who rehabilitates a brownfield property can receive tax incentives.

B.  

The contaminants in brownfields contain precious metals that can be sold to earn additional income.

C.  

Brownfield properties typically have the advantage of existing infrastructure such as roads, utilities, water/sewer servicing, schools, and transit facilities.

D.  

Brownfield properties can often be purchased at well below their potential market value.

A.  

Agrees to pay additional rent for a gross lease.

B.  

Cannot withhold rental payments even if the landlord does not comply with their obligations under the lease.

C.  

Agrees to pay any percentage rent a landlord demands, regardless of sales revenue.

D.  

Cannot pay rent to the property manager and must pay directly to the property owner.

A.  

Replacing old tenants with new tenants that pay much higher rent

B.  

Increasing the base rent and additional rent in a slow economy

C.  

Keeping good tenants

D.  

Delaying improvements to the property to save costs

A.  

The date of the agreement of purchase and sale

B.  

The balance due clause

C.  

The irrevocability clause

D.  

The purchase price

A.  

The municipality will take the number of available parking spaces and divide it by the property’s gross leasable area.

B.  

The municipality will take the number of available parking spaces and divide it by the projected number of monthly visitors.

C.  

The municipality will take the number of available parking spaces and divide it by the property’s net leasable area.

D.  

The municipality will take the property’s gross leasable area and divide it by the number of available parking spaces.

A.  

The developer will be responsible for calling a general meeting within 21 days to appoint a new board of directors.

B.  

The developer will be responsible for registering the declaration and description and creating the plan and vision for the property.

C.  

The developer will be responsible for much of the day-to-day management of the condominium corporation's affairs after the turnover meeting.

D.  

The developer will be responsible for overseeing the business affairs of the condominium corporation after the turnover meeting.

A.  

Conduct an analysis of why the transaction will not be carried out.

B.  

Pass the transaction to the broker of record so that the broker will take care of it.

C.  

Obtain the remuneration owed.

D.  

Terminate the transaction and disengage from it.

A.  

Operating cash flow can be positive or negative.

B.  

Operating cash flow is used when determining yield on an investment property, while sales proceeds cash flow is not used for this purpose.

C.  

Sales proceeds cash flow does not affect investor decisions.

D.  

Sales proceeds cash flow is used when determining yield on an investment property, while operating cash flow is not used for this purpose.

A.  

A list of customers who have purchased products in the last 60 months or since the business was acquired.

B.  

A statement of the expenses for the business for the past year or since the business was acquired.

C.  

A list of equipment, chattels, and fixtures that are included with the business.

D.  

An income statement for the past 12 months or since the business was acquired.