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Humber College PREX-1060A Test Fee & Latest PREX-1060A Exam Notes

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Humber College Exam 4: Invigilated Theory Exam Sample Questions (Q45-Q50):

NEW QUESTION # 45
Established under the Farming and Food Production Protection Act, the Normal Farm PracticesBoard is composed of members appointed by the Minister of Agriculture, Food and Rural Affairs. Which statement is NOT accurate with regard to the Normal Farm Practices Board?

A. The Board can order farmers to modify practices for consistency with normal farm practices.
B. The Board can conduct hearings that are heard by a minimum of five board members.
C. The Board can dismiss complaints if the disturbances are the result of normal farm practices.
D. The Board can order farmers to cease practices that cause disturbances if they are not considered to be normal farm practices.

Answer: B

NEW QUESTION # 46
In regard to the adjusted book value/asset valuation method of valuing a business, which of the following is correct?

A. A company's adjusted book value should be equal to the actual market value of the business.
B. A company's adjusted book value is entirely unrelated to its net worth.
C. The adjusted book value method should not be used when the sale of a business is being implemented or is under consideration.
D. The adjusted book value method takes goodwill into account when establishing the value of a business.

Answer: D

NEW QUESTION # 47
A buyer should consider the record of site condition (RSC) document when purchasing a commercial property. Which of the following statements regarding an RSC is correct?

A. Requesting an RSC is mandatory in all real estate transactions.
B. It contains records pertaining to a property's financial condition.
C. It is not a material fact; thus, it is a formality for the buyer to get it.
D. With other documents, it will inform the buyer of any legal issues attached to the title.

Answer: D

NEW QUESTION # 48
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. 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.
C. A key consideration a salesperson must keep in mind when handling the sale of a business is operating licenses.
D. 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.

Answer: D

NEW QUESTION # 49
The balance sheet of a business helps investors understand its stability and assess financial risk. A balance sheet includes details about all of the following, EXCEPT:

A. Liabilities
B. Net operating income
C. Shareholder's equity
D. Assets

Answer: B

NEW QUESTION # 50
......

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