M100 COMMUNITY ASSOCIATION MANAGEMENT EXAM
(ACTUAL 2025/2026) COMPLETE 326 QUESTIONS AND
VERIFIED CORRECT ANSWERS | GRADED A+ | | LATEST
EXAM
Each of the following are key characteristics of community associations
EXCEPT:
a. Mandatory lien-based economic charges or assessments are levied on each
owner in order to operate and maintain the community association.
b. Membership in the community association is mandatory and automatic for all
owners.
c. A requirement of community association ownership is serving on the board of
directors.
d. Certain documents bind all owners to be governed by the community
association.
c. A requirement of community association ownership is serving on the board of
directors.
This is one of the three key characteristics common to all community
associations. Members of an association are not legally required to serve on the
board of directors; however, the overall success on the community is dependent
upon the members' involvement its affairs.
True or False. The primary purpose of a community association is to provide for
the governance, business, and communal aspects of the association.
True
Providing for the governance, business, and communal aspects of the
association is achieved by administering, maintaining, and enhancing a
,residential real estate development, and through the establishment of a system
of property rights, binding covenants and restrictions, and rules and regulations.
True or false. The "business judgment rule" means that if a board has exercised
reasonable business judgment in making a decision, the court will generally not
consider the board negligent in its fiduciary duty.
True
Through judicial decision, a substantial body of law has developed concerning
the standards to which directors must conform while conducting a community
association's affairs. Many courts apply the "business judgment rule" to a
board's actions.
Which of the following community association committees typically are
assigned responsibilities related to elections, nominations, and architectural
standards?
a. standing committees
b. professional committees
c. ad hoc committees
d. mandatory committees
d. mandatory committees
A mandatory committee is one that is required by the governing documents.
Mandatory committees typically are assigned responsibilities related to
elections, nominations, and architectural standards.
,True or false. The role of the professional community association manager is to
make all decisions for the association and to delegate information-gathering and
fact-finding support to the board of directors.
False
The professional community association manager is charged with assisting the
board of directors' decision making process by means of providing information-
gathering and fact-finding support, implementing the decisions of the board;
and administering the services, programs, and operations of the community
association within the policies and guidelines set by the board.
In which of the following forms of community association management is the
association managed by the board itself or by committees under the direction of
the board?
a. management company
b. volunteer or self-management
c. association-employed manager
d. municipal management
b. volunteer or self-management
Self-managed community associations make up a majority of all associations in
the United States; approximately 150,000 self-managed community associations
currently exist in the U.S. In self managed associations, the board itself is
responsible for all community association functions, including maintaining
accounting records, preparing budgets, collecting dues, and staying informed
about association resources and best practices.
True or false. An increase in assessment delinquencies that is not due to a poor
economy may be an example of a warning sign of a weak management
situation.
, True
When assessment delinquencies increase, the manager should investigate the
reasons for the increase as soon as possible and as objectively as he or she can.
In addition, if the demands of the community association and the board of
directors are unreasonable or exceed the manager's ability to perform the
required services, it is the manager's responsibility to communicate this to the
board before it creates a weak management situation.
Investments
The purchase of anything with money value for the purpose of generating
additional money over time, such as savings accounts. A community manager
may be responsible for overseeing the association's investments. A well-run
community association should have a written investment policy and a set of
procedures for ensuring that the policy is implemented. Every community
association also should establish a system of internal checks and balances to
protect its investments.
Job description
A job description is a specific description of the— 1.Required duties of a
position 2.Skills and knowledge necessary to perform required duties
3.Reporting relationships of the position A written job description should exist
before you hire an individual for a position: 4.It tells you and the potential
employee what is expected of the person in the position 5.It is an aid for
planning and budgeting for the use of personnel 6.It is an aid for evaluating job
performance For the above reasons, it is important to take the time to
periodically review and update job descriptions. An outdated job description
leads to misunderstanding at best and legal problems at worst. Job descriptions
should be created for each staff position.
(ACTUAL 2025/2026) COMPLETE 326 QUESTIONS AND
VERIFIED CORRECT ANSWERS | GRADED A+ | | LATEST
EXAM
Each of the following are key characteristics of community associations
EXCEPT:
a. Mandatory lien-based economic charges or assessments are levied on each
owner in order to operate and maintain the community association.
b. Membership in the community association is mandatory and automatic for all
owners.
c. A requirement of community association ownership is serving on the board of
directors.
d. Certain documents bind all owners to be governed by the community
association.
c. A requirement of community association ownership is serving on the board of
directors.
This is one of the three key characteristics common to all community
associations. Members of an association are not legally required to serve on the
board of directors; however, the overall success on the community is dependent
upon the members' involvement its affairs.
True or False. The primary purpose of a community association is to provide for
the governance, business, and communal aspects of the association.
True
Providing for the governance, business, and communal aspects of the
association is achieved by administering, maintaining, and enhancing a
,residential real estate development, and through the establishment of a system
of property rights, binding covenants and restrictions, and rules and regulations.
True or false. The "business judgment rule" means that if a board has exercised
reasonable business judgment in making a decision, the court will generally not
consider the board negligent in its fiduciary duty.
True
Through judicial decision, a substantial body of law has developed concerning
the standards to which directors must conform while conducting a community
association's affairs. Many courts apply the "business judgment rule" to a
board's actions.
Which of the following community association committees typically are
assigned responsibilities related to elections, nominations, and architectural
standards?
a. standing committees
b. professional committees
c. ad hoc committees
d. mandatory committees
d. mandatory committees
A mandatory committee is one that is required by the governing documents.
Mandatory committees typically are assigned responsibilities related to
elections, nominations, and architectural standards.
,True or false. The role of the professional community association manager is to
make all decisions for the association and to delegate information-gathering and
fact-finding support to the board of directors.
False
The professional community association manager is charged with assisting the
board of directors' decision making process by means of providing information-
gathering and fact-finding support, implementing the decisions of the board;
and administering the services, programs, and operations of the community
association within the policies and guidelines set by the board.
In which of the following forms of community association management is the
association managed by the board itself or by committees under the direction of
the board?
a. management company
b. volunteer or self-management
c. association-employed manager
d. municipal management
b. volunteer or self-management
Self-managed community associations make up a majority of all associations in
the United States; approximately 150,000 self-managed community associations
currently exist in the U.S. In self managed associations, the board itself is
responsible for all community association functions, including maintaining
accounting records, preparing budgets, collecting dues, and staying informed
about association resources and best practices.
True or false. An increase in assessment delinquencies that is not due to a poor
economy may be an example of a warning sign of a weak management
situation.
, True
When assessment delinquencies increase, the manager should investigate the
reasons for the increase as soon as possible and as objectively as he or she can.
In addition, if the demands of the community association and the board of
directors are unreasonable or exceed the manager's ability to perform the
required services, it is the manager's responsibility to communicate this to the
board before it creates a weak management situation.
Investments
The purchase of anything with money value for the purpose of generating
additional money over time, such as savings accounts. A community manager
may be responsible for overseeing the association's investments. A well-run
community association should have a written investment policy and a set of
procedures for ensuring that the policy is implemented. Every community
association also should establish a system of internal checks and balances to
protect its investments.
Job description
A job description is a specific description of the— 1.Required duties of a
position 2.Skills and knowledge necessary to perform required duties
3.Reporting relationships of the position A written job description should exist
before you hire an individual for a position: 4.It tells you and the potential
employee what is expected of the person in the position 5.It is an aid for
planning and budgeting for the use of personnel 6.It is an aid for evaluating job
performance For the above reasons, it is important to take the time to
periodically review and update job descriptions. An outdated job description
leads to misunderstanding at best and legal problems at worst. Job descriptions
should be created for each staff position.
