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Humber College Exam 4: Invigilated Theory Sample Questions:

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

2. What is the best indicator of a strong office market?

A) When tenants have lots of options because of the amount of available space at favorable rates
B) Low rental rates and many concessions
C) The absorption rate, net absorption rate, and rising rental rates
D) The number of free months given to new and renewing tenants by landlords in the office marketplace

3. A seller provides you with architectural drawings of their building. Which statement is NOT correct?

A) Architectural drawings are source documents.
B) A photocopy of a source document can be used to verify information.
C) Other types of source documents include surveys and tax records.
D) If changes are made to source documents, they are still valid if you have the original document.

4. Which of the following is a characteristic of main street retail?

A) Comprises a blend of old and new stores
B) Must be located in a small, older community
C) Structure size typically ranges from 100,000 to 130,000 square feet
D) Consists of newer, free-standing buildings only

5. In a commercial transaction, which of the following is NOT a responsibility of the lawyer?

A) Review of financial statements
B) Remedy of title issues
C) Review of the Agreement of Purchase and Sale
D) Exchange of legal documents

Solutions: