CAIB 4 STUDY GUIDE 2026 QUESTIONS WITH
ANSWERS GRADED A+
◉ Apparent Authority. Answer: The power of an agent to act on behalf
of a principal, even though not expressly or impliedly granted.
◉ Brokerage Affiliations. Answer: A formal group of brokerages formed
with the intent of expanding their knowledge bases and/or to gain access
to more resources.
◉ Corporation. Answer: A legally established business that can own
assets and incur debt.
◉ Express Authority. Answer: An agent's power to act on behalf of a
principal, explicitly granted by an agreement between the agent and the
principal.
◉ Fiduciary. Answer: A person or organization that acts on behalf of
another person or persons, putting their client's interests ahead of their
own, with a duty to preserve good faith and trust.
ANSWERS GRADED A+
◉ Apparent Authority. Answer: The power of an agent to act on behalf
of a principal, even though not expressly or impliedly granted.
◉ Brokerage Affiliations. Answer: A formal group of brokerages formed
with the intent of expanding their knowledge bases and/or to gain access
to more resources.
◉ Corporation. Answer: A legally established business that can own
assets and incur debt.
◉ Express Authority. Answer: An agent's power to act on behalf of a
principal, explicitly granted by an agreement between the agent and the
principal.
◉ Fiduciary. Answer: A person or organization that acts on behalf of
another person or persons, putting their client's interests ahead of their
own, with a duty to preserve good faith and trust.
