Module 4 – Community Management – Property and Association Management Study Guide, Key Concepts and Exam Review

Module 4 – Community Management – Property and Association Management Study Guide,
Key Concepts and Exam Review



Each of the following legal sources specify management authority and responsibilities for
community associations except:

a. survey data

b. state statutes

c. community association governing docs

d. court decisions - ANS ✔✔a. survey data



True/False: the basic authority in a community association lies with the developer - ANS
✔✔False



The Board of directors in a community association has a _______ to act in the best interests and
for the benefit of the community as a whole.

a. bond

b. fiduciary duty

c. ballot

d. quorum - ANS ✔✔b. fiduciary duty



True/false: The "business judgement rule:" means that if a board has exercised reasonable
business judgement in making a decision, the court will generally not consider the board
negligent in its fiduciary duty. - ANS ✔✔True



Which of the following types of community association committees typically is assigned
responsibilities related to elections, nominations, and architectural standards:

a. standing committee

b. professional committees