M100 COMMUNITY ASSOCIATION
MANAGEMENT EXAM NEWEST 2026
ACTUAL EXAM TEST BANK|
COMPLETE 200 REAL EXAM
QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS)
ALREADY GRADED A+
1. What is the primary governing document of a community association?
A) Articles of Incorporation
B) Bylaws
C) Declaration of Covenants, Conditions, and Restrictions (CC&Rs)
D) Rules and Regulations
Answer: C
Rationale: The Declaration (CC&Rs) is the foundational document that runs with the land
and establishes the covenants, restrictions, and obligations for all owners. Bylaws govern
the association's internal operations, and the Articles of Incorporation establish the
association as a legal entity.
2. Which document typically establishes the association as a legal entity?
A) CC&Rs
B) Bylaws
C) Articles of Incorporation
D) Rules and Regulations
,Answer: C
Rationale: The Articles of Incorporation are filed with the state to create the association as
a nonprofit corporation. Without them, the association cannot enter contracts or sue/be
sued.
3. Under most state laws, how many days' notice is typically required for an annual
membership meeting?
A) 7 days
B) 10 days
C) 14 to 30 days
D) 45 days
Answer: C
Rationale: Most state statutes and governing documents require between 10 and 30 days'
written notice for annual meetings, with 14 to 30 being most common.
4. What is a quorum?
A) The number of board members needed to pass a motion
B) The minimum number of members that must be present to conduct official business
C) The percentage of votes needed to amend the CC&Rs
D) The number of owners who must approve the budget
Answer: B
Rationale: A quorum is the minimum number of members (or board members) required to
be present to legally conduct business. For membership meetings, it is typically defined in
the bylaws.
5. Which of the following is NOT a fiduciary duty of board members?
A) Duty of care
B) Duty of loyalty
C) Duty of obedience
D) Duty of enforcement
,Answer: D
Rationale: Fiduciary duties include duty of care (acting reasonably), duty of loyalty (acting
in the association's best interest), and duty of obedience (following governing documents
and laws). Enforcement is a responsibility but not a fiduciary duty.
6. When must reserves be used?
A) For any unexpected expense
B) Only for major repairs and replacements as outlined in the reserve study
C) To cover operating budget deficits
D) For any capital improvement
Answer: B
Rationale: Reserve funds are designated for specific major repairs and replacements
identified in the reserve study. Using reserves for operating expenses is generally
prohibited.
7. What is the primary purpose of a reserve study?
A) To determine annual operating expenses
B) To forecast future major repairs and replacements and ensure adequate funding
C) To set the monthly assessment amount
D) To calculate insurance deductibles
Answer: B
Rationale: A reserve study evaluates the association's common area components, their
useful life, and replacement costs to ensure sufficient funds are set aside.
8. Which of the following is typically NOT a common area maintenance
responsibility of the association?
A) Roof replacement on a condominium building
B) Interior drywall repair within a unit
C) Exterior painting of all buildings
D) Landscaping in common areas
, Answer: B
Rationale: In most condominiums, interior drywall within a unit is the owner's
responsibility. The association maintains common elements.
9. Who can serve on the board of directors unless restricted by governing
documents?
A) Any owner in good standing
B) Only owners who have lived in the community for one year
C) Any renter with board approval
D) Only former board members
Answer: A
Rationale: Typically, any owner in good standing (current on assessments, not in violation)
may serve on the board unless specific restrictions exist in the bylaws.
10. What is the purpose of an audit?
A) To prepare the annual budget
B) To verify the accuracy of financial statements and ensure compliance with accounting
standards
C) To collect delinquent assessments
D) To approve reserve expenditures
Answer: B
Rationale: An independent audit provides assurance that financial statements are accurate
and the association is following proper accounting practices.
11. If an owner is delinquent on assessments, what is the association's first step?
A) File a lawsuit
B) Place a lien on the property
C) Send a delinquency notice
D) Foreclose immediately
MANAGEMENT EXAM NEWEST 2026
ACTUAL EXAM TEST BANK|
COMPLETE 200 REAL EXAM
QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS)
ALREADY GRADED A+
1. What is the primary governing document of a community association?
A) Articles of Incorporation
B) Bylaws
C) Declaration of Covenants, Conditions, and Restrictions (CC&Rs)
D) Rules and Regulations
Answer: C
Rationale: The Declaration (CC&Rs) is the foundational document that runs with the land
and establishes the covenants, restrictions, and obligations for all owners. Bylaws govern
the association's internal operations, and the Articles of Incorporation establish the
association as a legal entity.
2. Which document typically establishes the association as a legal entity?
A) CC&Rs
B) Bylaws
C) Articles of Incorporation
D) Rules and Regulations
,Answer: C
Rationale: The Articles of Incorporation are filed with the state to create the association as
a nonprofit corporation. Without them, the association cannot enter contracts or sue/be
sued.
3. Under most state laws, how many days' notice is typically required for an annual
membership meeting?
A) 7 days
B) 10 days
C) 14 to 30 days
D) 45 days
Answer: C
Rationale: Most state statutes and governing documents require between 10 and 30 days'
written notice for annual meetings, with 14 to 30 being most common.
4. What is a quorum?
A) The number of board members needed to pass a motion
B) The minimum number of members that must be present to conduct official business
C) The percentage of votes needed to amend the CC&Rs
D) The number of owners who must approve the budget
Answer: B
Rationale: A quorum is the minimum number of members (or board members) required to
be present to legally conduct business. For membership meetings, it is typically defined in
the bylaws.
5. Which of the following is NOT a fiduciary duty of board members?
A) Duty of care
B) Duty of loyalty
C) Duty of obedience
D) Duty of enforcement
,Answer: D
Rationale: Fiduciary duties include duty of care (acting reasonably), duty of loyalty (acting
in the association's best interest), and duty of obedience (following governing documents
and laws). Enforcement is a responsibility but not a fiduciary duty.
6. When must reserves be used?
A) For any unexpected expense
B) Only for major repairs and replacements as outlined in the reserve study
C) To cover operating budget deficits
D) For any capital improvement
Answer: B
Rationale: Reserve funds are designated for specific major repairs and replacements
identified in the reserve study. Using reserves for operating expenses is generally
prohibited.
7. What is the primary purpose of a reserve study?
A) To determine annual operating expenses
B) To forecast future major repairs and replacements and ensure adequate funding
C) To set the monthly assessment amount
D) To calculate insurance deductibles
Answer: B
Rationale: A reserve study evaluates the association's common area components, their
useful life, and replacement costs to ensure sufficient funds are set aside.
8. Which of the following is typically NOT a common area maintenance
responsibility of the association?
A) Roof replacement on a condominium building
B) Interior drywall repair within a unit
C) Exterior painting of all buildings
D) Landscaping in common areas
, Answer: B
Rationale: In most condominiums, interior drywall within a unit is the owner's
responsibility. The association maintains common elements.
9. Who can serve on the board of directors unless restricted by governing
documents?
A) Any owner in good standing
B) Only owners who have lived in the community for one year
C) Any renter with board approval
D) Only former board members
Answer: A
Rationale: Typically, any owner in good standing (current on assessments, not in violation)
may serve on the board unless specific restrictions exist in the bylaws.
10. What is the purpose of an audit?
A) To prepare the annual budget
B) To verify the accuracy of financial statements and ensure compliance with accounting
standards
C) To collect delinquent assessments
D) To approve reserve expenditures
Answer: B
Rationale: An independent audit provides assurance that financial statements are accurate
and the association is following proper accounting practices.
11. If an owner is delinquent on assessments, what is the association's first step?
A) File a lawsuit
B) Place a lien on the property
C) Send a delinquency notice
D) Foreclose immediately
