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PREX-1060A Exam Dumps : Exam 4: Invigilated Theory Exam

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Exam 4: Invigilated Theory Exam Questions and Answers

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Question 1

Which of the following statements about economic development offices is NOT correct?

Options:

A.

Economic development offices can provide you with real property information regarding tax assessments and how to appeal your real estate taxes.

B.

Economic development offices provide background information on local, provincial, and federal research and development incentives.

C.

Economic development offices have important resources for those seeking suitable commercial sites for business operations.

D.

Economic development offices can help guide development applications through municipal processes and streamline the approvals process for companies unfamiliar with regulatory requirements.

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Question 2

A buyer wants to purchase an industrial property for its international logistics and distribution center. Currently, the building is used by a local courier company with small delivery trucks and vans. When drafting an offer to purchase this property, which of the following should be added regarding this change of use?

Options:

A.

A clause to obtain the necessary mortgage amount

B.

A clause to test the quality of the underground water source

C.

A clause to check the condition of the trucks and vans

D.

A clause to ensure the truck parking spaces and turning radius are sufficient

Question 3

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

Options:

A.

A company’s adjusted book value should be equal to the actual market value of the business.

B.

The adjusted book value method should not be used when the sale of a business is being implemented or is under consideration.

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.

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