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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

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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Question 2

A buyer client is discussing zoning bylaws of the municipality in relation to an industrial development site with their salesperson. Which of the following is NOT a correct statement with respect to zoning bylaws?

Options:

A.

Zoning bylaws specify the permitted land uses throughout a municipality.

B.

Municipal zoning bylaws overrule all other laws with respect to land uses and issuance ofbuilding permits in Ontario.

C.

New commercial construction and redevelopment must comply with zoning bylaws.

D.

Municipalities have zoning bylaws that divide the city into different land uses or zones.

Question 3

A salesperson is drafting an agreement to lease a retail property for a tenant client who is looking to open a women's apparel store. Which of the following would NOT be included in the agreement to lease?

Options:

A.

A description of the premises

B.

The names of all the tenant's suppliers

C.

The commencement date of the lease

D.

The names of all parties to the lease

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