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Humber College Exam 4: Invigilated Theory Sample Questions:

1. A land developer is interested in purchasing a piece of vacant land. Which of the following statements about evaluating the highest and best use of the real property is correct?

A) The land developer can identify the use of the property that is anticipated to produce the highest overall return so the appraiser can complete the appraisal.
B) A designated appraiser will use all factual sales data to determine the value of the current highest and best use of the property.
C) The estimate of value is related to how a typical buyer, with a reasonable knowledge of the market and property, wants to use the property.
D) A property's highest and best use is the use that, at the time the building was built, was most likely to produce the greatest net return.

2. What should a salesperson do if they are unable to secure documentation to verify the usable and rentable areas of a property?

A) Use a laser measuring tool to take the measurements and use the R/U factor to calculate the figures
B) Use the R/U factor to calculate the figures
C) Use a laser measuring tool to take the measurements
D) Recommend that the landlord obtain the professional services of a measuring company to obtain the figures

3. Which of the following is NOT relevant information a salesperson must verify when representing a landlord who is planning to lease their industrial property?

A) The salesperson must verify whether the tenant's intended use for the industrial property is permitted under the zoning bylaw.
B) The salesperson must verify the zoning information for the industrial property.
C) The salesperson must verify the rates and terms of lease for the property.
D) The salesperson must verify the previous tenant's lease rates and terms.

4. Finish the sentence: The Employment Standards Act:

A) Regulates trade names.
B) Specifies the terms of a business partnership agreement.
C) Regulates matters involving ownership of a business.
D) Protects the rights of workers of a business that is being sold.

5. Asset sale and share sale are two different ways to sell a business. Which statement describes an asset sale?

A) The buyer is eligible for tax deductions and benefits by claiming capital cost allowance on depreciable property.
B) The seller benefits from a tax standpoint since any gain to the seller on the sale will be considered under the capital gains tax exemption.
C) The buyer replaces the seller as the owner of the corporation.
D) The buyer assumes all assets and accepts all liabilities of the business.

Solutions: