RES400 MIDTERM QUESTIONS AND
ANSWERS WITH VERIFIED SOLUTIONS
2024
1. Professional real estate management is defined as:
a) The ownership and operation of a property to maximize its value
b) Involving mainly maintenance, rent collection, and leasing
c) The administrative operation and maintenance of property to meet the objectives of the
owner
d) A specialty that real estate brokers become involved with when real estate sales are slow - ANSWER c)
The administrative operation and maintenance of property to meet the objectives of the owner
2. During the 1920s, property owners began to hire real estate managers because:
a) Owners accumulated great wealth from their investments and often were away from their properties
for long periods
b) Owners realized that the Depression was nearing and hired professional managers to maintain their
assets
c) An intense marketing effort by pioneering real estate managers convinced many business
mavericks that professional management could maximize the value of their properties
d) Lending institutions required independent real estate management before they would approve
loans - ANSWER *a) Owners accumulated great wealth from their investments and often were away
from their
properties for long periods
3. Why did the Great Depression mark the beginning of modern real estate management?
a) Many who lost their jobs during the Depression found career opportunities in professional real
estate management
b) For the first time, a large volume of property was gathered under one ownership, one policy,
and one common perspective
c) Training professional real estate managers was one program begun by the government during
,the recovery period in the 1930s
d) None of the above - ANSWER *b) For the first time, a large volume of property was gathered under
one ownership, one policy, and one common perspective
4. What governmental corporation was created in the late 1980s to liquidate the assets of
failed thrifts?
a) The Federal Savings and Loan Insurance Corporation
b) The Restitution for Taxpayers Corporation
c) The Recoverable Assets Corporation
d) The Resolution Trust Corporation - ANSWER *d) The Resolution Trust Corporation
5. What is the name of the association founded in 1933 that accredits property managers?
a) The Institute of Real Estate Management
b) The National Association of Real Estate Boards
c) The Real Estate Management Foundation
d) The Institute of Property Management - ANSWER *a) The Institute of Real Estate Management
6. What does the acronym "CPM" stand for?
a) CREDITED PROPERTY MANAGER®
b) CERTIFIED PROFESSIONAL MANAGER®
c) CERTIFIED PROPERTY MANAGER®
d) CORPORATION OF PROPERTY MANAGERS® - ANSWER *c) CERTIFIED PROPERTY MANAGER®
7. Which of the following is not a primary responsibility of real estate management?
a) Maintaining the property
b) Buying and selling real property for owners
c) Preparing budgets
d) Hiring and supervising property personnel - ANSWER *b) Buying and selling real property for owners
,8. Which of these is a fiduciary?
a) A property owner
b) An accountant in a real estate management firm
c) An agent of the federal government
d) A real estate manager who is an agent of a property owner - ANSWER *d) A real estate manager who
is an agent of a property owner
9. A(n) ___________ is often called upon to analyze a property's physical and financial
condition and recommend ways to maximize the owner's return on investment.
a) Site manager
b) Regional manager
c) Asset manager
d) Executive property manager - ANSWER *c) Asset manager
10. Providing good service to tenants is an indirect way to:
a) Increase operating expenses
b) Reduce occupancy rates
c) Provide good service to the property owner - ANSWER *c) Provide good service to the property owner
d) Assure prompt payment of rent
11. The amount of money required in exchange for merchandise or service is called its:
a) Cost
b) Price
c) Value
d) Sale - ANSWER *b) Price
12. The amount of goods or services available in the marketplace is called:
a) Demand
b) Volume
, *c) Supply
d) Price - ANSWER *c) Supply
13. Prices tend to be stable when supply is equal to demand - ANSWER when demand exceeds supply,
prices rise; when supply exceeds demand, prices drop. These statements are called:
a) The principles of economics
b) The rules of supply
c) The business cycle
d) The laws of supply and demand ; *d) The laws of supply and demand
14. What is the principal driving force in economics?
a) The laws of supply and demand
b) The business cycle
c) The real estate cycle
d) The U.S. government - ANSWER *a) The laws of supply and demand
15. Changes in levels of employment and unemployment are important to real estate managers
because:
a) They indicate the size of the workforce
b) They reflect people's and businesses' ability to pay rent
c) High unemployment signals a downturn in the economy
d) None of the above - ANSWER *b) They reflect people's and businesses' ability to pay rent
16. What is one of the most far-reaching causes of change in the economic marketplace?
a) Oversupply of residential real estate
b) Labor shortages
c) New technologies
d) None of the above - ANSWER *c) New technologies
ANSWERS WITH VERIFIED SOLUTIONS
2024
1. Professional real estate management is defined as:
a) The ownership and operation of a property to maximize its value
b) Involving mainly maintenance, rent collection, and leasing
c) The administrative operation and maintenance of property to meet the objectives of the
owner
d) A specialty that real estate brokers become involved with when real estate sales are slow - ANSWER c)
The administrative operation and maintenance of property to meet the objectives of the owner
2. During the 1920s, property owners began to hire real estate managers because:
a) Owners accumulated great wealth from their investments and often were away from their properties
for long periods
b) Owners realized that the Depression was nearing and hired professional managers to maintain their
assets
c) An intense marketing effort by pioneering real estate managers convinced many business
mavericks that professional management could maximize the value of their properties
d) Lending institutions required independent real estate management before they would approve
loans - ANSWER *a) Owners accumulated great wealth from their investments and often were away
from their
properties for long periods
3. Why did the Great Depression mark the beginning of modern real estate management?
a) Many who lost their jobs during the Depression found career opportunities in professional real
estate management
b) For the first time, a large volume of property was gathered under one ownership, one policy,
and one common perspective
c) Training professional real estate managers was one program begun by the government during
,the recovery period in the 1930s
d) None of the above - ANSWER *b) For the first time, a large volume of property was gathered under
one ownership, one policy, and one common perspective
4. What governmental corporation was created in the late 1980s to liquidate the assets of
failed thrifts?
a) The Federal Savings and Loan Insurance Corporation
b) The Restitution for Taxpayers Corporation
c) The Recoverable Assets Corporation
d) The Resolution Trust Corporation - ANSWER *d) The Resolution Trust Corporation
5. What is the name of the association founded in 1933 that accredits property managers?
a) The Institute of Real Estate Management
b) The National Association of Real Estate Boards
c) The Real Estate Management Foundation
d) The Institute of Property Management - ANSWER *a) The Institute of Real Estate Management
6. What does the acronym "CPM" stand for?
a) CREDITED PROPERTY MANAGER®
b) CERTIFIED PROFESSIONAL MANAGER®
c) CERTIFIED PROPERTY MANAGER®
d) CORPORATION OF PROPERTY MANAGERS® - ANSWER *c) CERTIFIED PROPERTY MANAGER®
7. Which of the following is not a primary responsibility of real estate management?
a) Maintaining the property
b) Buying and selling real property for owners
c) Preparing budgets
d) Hiring and supervising property personnel - ANSWER *b) Buying and selling real property for owners
,8. Which of these is a fiduciary?
a) A property owner
b) An accountant in a real estate management firm
c) An agent of the federal government
d) A real estate manager who is an agent of a property owner - ANSWER *d) A real estate manager who
is an agent of a property owner
9. A(n) ___________ is often called upon to analyze a property's physical and financial
condition and recommend ways to maximize the owner's return on investment.
a) Site manager
b) Regional manager
c) Asset manager
d) Executive property manager - ANSWER *c) Asset manager
10. Providing good service to tenants is an indirect way to:
a) Increase operating expenses
b) Reduce occupancy rates
c) Provide good service to the property owner - ANSWER *c) Provide good service to the property owner
d) Assure prompt payment of rent
11. The amount of money required in exchange for merchandise or service is called its:
a) Cost
b) Price
c) Value
d) Sale - ANSWER *b) Price
12. The amount of goods or services available in the marketplace is called:
a) Demand
b) Volume
, *c) Supply
d) Price - ANSWER *c) Supply
13. Prices tend to be stable when supply is equal to demand - ANSWER when demand exceeds supply,
prices rise; when supply exceeds demand, prices drop. These statements are called:
a) The principles of economics
b) The rules of supply
c) The business cycle
d) The laws of supply and demand ; *d) The laws of supply and demand
14. What is the principal driving force in economics?
a) The laws of supply and demand
b) The business cycle
c) The real estate cycle
d) The U.S. government - ANSWER *a) The laws of supply and demand
15. Changes in levels of employment and unemployment are important to real estate managers
because:
a) They indicate the size of the workforce
b) They reflect people's and businesses' ability to pay rent
c) High unemployment signals a downturn in the economy
d) None of the above - ANSWER *b) They reflect people's and businesses' ability to pay rent
16. What is one of the most far-reaching causes of change in the economic marketplace?
a) Oversupply of residential real estate
b) Labor shortages
c) New technologies
d) None of the above - ANSWER *c) New technologies
