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 PREX-1060A Dumps with Practice Exam Questions Answers

Questions: 120 questions

Last Update: Sep 30, 2024

PREX-1060A Question Includes: Single Choice Questions: 120,

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PREX-1060A Questions and Answers

Question # 1

Salespersons are required to verify, wherever they can, information provided by landlords, such as zoning details and permitted uses. A salesperson is helping a major landlord to lease out a big retail mall that involves complex matters. Which of the following does NOT need third-party professional advice?

A.

The total area measurements

B.

The maximum floor load of every unit

C.

The number of sprinklers required in every unit

D.

The total remuneration payable for a 20-year lease

Question # 2

Asset sale and share sale are two different ways to sell a business. Which statement describes an asset sale?

A.

The buyer replaces the seller as the owner of the corporation.

B.

The buyer assumes all assets and accepts all liabilities of the business.

C.

The buyer is eligible for tax deductions and benefits by claiming capital cost allowance on depreciable property.

D.

The seller benefits from a tax standpoint since any gain to the seller on the sale will be considered under the capital gains tax exemption.

Question # 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.

A key consideration a salesperson must keep in mind when handling the sale of a business is operating licenses.

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.

There are various municipal bylaws that could impact the sale of a business, depending on the business activity.

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.

Question # 4

When a property assessment of a new commercial property has not been completed prior to its resale, what should a salesperson do to protect the buyer?

A.

Include the current tax assessment as a schedule of the agreement.

B.

Ensure the offer contains a clause requiring the seller and the buyer to share the property taxes to be assessed for the next three years.

C.

Ensure the offer contains a clause allowing for compensation for adjustments to the property taxes.

D.

Get a letter from the seller to guarantee a maximum amount of realty tax payment in the coming year.

Question # 5

When calculating the total purchase price of farmland with improvements on it, which of the following items is NOT included?

A.

Goodwill

B.

Fixed equipment

C.

Residence

D.

Barns and sheds