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Humber College Exam 4: Invigilated Theory Exam Sample Questions (Q14-Q19):
NEW QUESTION # 14
A lender completes a financial statement analysis and calculation on various ratios that would indicate the financial performance of the commercial building. Which of the following is NOT correct?
- A. The success of ventures often rests in the availability and suitability of financing.
- B. Lenders will apply various financial ratios to get a solid understanding of the business's performance and the ability of the borrower to service debt.
- C. It does not matter; mortgaging does not affect cash flow and yields.
- D. The investor is afforded the opportunity to enhance yield.
Answer: C
NEW QUESTION # 15
A landlord and a tenant have signed an agreement to lease an office space. Prior to the transaction closing, an unforeseeable event occurs that is not the fault of either party. Which statement about the return of the tenant's deposit is NOT correct?
- A. The tenant can have the deposit back without signing a mutual release as it is not their fault.
- B. The landlord and tenant may agree to split the deposit.
- C. The agreement may contain a clause forfeiting all of the deposit if the landlord has started work on the premises.
- D. The parties may need to obtain a court order that clarifies how the deposit will be returned and distributed.
Answer: A
NEW QUESTION # 16
When a farm is sold, there are exemptions to the payment of harmonized sales tax (HST). In which of the following circumstances is a farmer responsible to pay HST to the Canada Revenue Agency (CRA)?
- A. The farm is sold to a corporation and the HST is included in the selling price.
- B. The farmer sells the farm to a relative.
- C. The farmer uses a smaller portion of the farm for a residence.
- D. The farm has been used for personal use.
Answer: D
NEW QUESTION # 17
A salesperson should know how to gather key information about a new commercial condominium, including the size of a unit. Which of the following sources of information should a salesperson rely on?
- A. A surveyor's certificate for the unit
- B. An opinion from the property manager
- C. An opinion from the seller's lawyer
- D. A sketch of the seller's floor layout
Answer: A
NEW QUESTION # 18
Land developers purchase land for commercial, industrial, and residential projects. Tracts of land larger than five acres but smaller than 10 acres may appeal to land developers for various reasons. Which of the following is one of the reasons?
- A. They are a good size for modern 18-hole golf courses.
- B. They are normally less expensive than pieces of land smaller than two acres in the same neighborhood.
- C. The developer cannot find a building lot to build a detached home.
- D. They can be used for newly planned subdivisions.
Answer: D
NEW QUESTION # 19
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