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Humber College Exam 4: Invigilated Theory Sample Questions:

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

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

2. 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 the tenant's assets and income due to business interruption as the result of a fire or flood.
B) 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.
C) 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.
D) 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.

3. There are different requirements under REBBA and other legislation that affect the sale of a business. Which of the following is NOT correct?

A) There are various municipal bylaws that could impact the sale of a business, depending on the business activity.
B) If a municipal license is associated with the business and it may be transferrable to the buyer, then it is of no concern to the sales representative.
C) A key consideration a salesperson must keep in mind when handling the sale of a business is operating licenses.
D) Depending on the business location, there are various municipal bylaws, zoning, permits, and other rules and regulations that could impact the sale of a business.

4. A brokerage negotiates the sale of a business on behalf of a seller. Which of the following documents must the brokerage provide to the buyer?

A) A list of chattels excluded in the sale
B) A profit and loss statement for the real estate brokerage for the preceding 12 months
C) A statement of the assets and liabilities of the brokerage
D) A list of fixtures included in the sale

5. Utility requirements are different for retail, office, and industrial properties, and a salesperson should understand the utility needs of each client. Which of the following items is NOT required bya typical occupant of a retail space?

A) A stable internet connection
B) Sufficient lighting
C) A proper ventilation system
D) A high voltage and ampere supply

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