Property Management Exam QUESTIONS
WITH COMPLETE SOLUTIONS
/. The high-rise office buildings were made possible because of:
a. the moldboard plow.
b. structural steel.
c. the electric elevator.
d. both b and c. - Answer-✅D: Both B and C
/.Which of the following property management areas
employ the largest number of people?
a. Franchise leasing
b. Government
c. REIT management
d. Private management firms - Answer-✅B: Government
/.Characteristics of REITs include:
a. publicly traded.
b. purchasers of large properties.
c. not taxed on profits passed on as dividends.
d. all of the above. - Answer-✅D: All of the above
/.Benefits offered by professional property management include:
a. lower vacancy factors.
b. higher rents.
c. prolonging economic life.
d. all of the above. - Answer-✅D: All of the above
/.Personal attributes for success in property management include:
a. people skills.
b. goal oriented.
c. flexibility.
d. all of the above. - Answer-✅D: All of the above
/.CPM stands for:
a. Certificate in Property Management.
b. Corporate Property Manager.
c. Certified Property Manager.
d. Consumer Protection Marketing. - Answer-✅C: Certified Property mangager
,/.ARM stands for:
a. Association of Retail Managers.
b. Accredited Residential Manager.
c. American Restaurant Management.
d. Alliance of Residential Managers. - Answer-✅B: Accredited Residential Manager
/.AMO stands for:
a. Accredited Management Organization.
b. American Maintenance Organization.
c. Association of Management Officers.
d. Alliance of Management Organizations. - Answer-✅A: Accredited Management
Organization
/.BOMA stands for:
a. Benevolent Order of Managing Agents.
b. Building Owners and Managers Association.
c. Builders, Operators, and Managers Alliance.
d. Building Operators Maintenance Association. - Answer-✅B: Building Owners and
Managers Association
/.RPA stands for:
a. Real Property Administrator.
b. Residential Property Administrator.
c. Real Estate Professional Alliance.
d. Repair, Protect, and Administer. - Answer-✅A: Real Property Administrator
/.Benefits of ownership of investment property include all, except:
a. risk.
b. appreciation.
c. pride of ownership.
d. capital gains tax on sale profits. - Answer-✅A: Risk
/.A property analysis included in a management plan would cover:
a. the locational advantages and disadvantages of the property.
b. the physical structure.
c. current tenants and rents.
d. all of the above. - Answer-✅D: All of the above
/.What is a Pro-Forma Statement?
a. The current rent schedule
b. An audited operating statement
c. A statement as to anticipated rents and expenses
d. A chart showing the changes in vacancies - Answer-✅C: A statement as to
anticipated rents and expenses
, /.Zero-based budgeting is based on:
a. no expenses for maintenance.
b. 100 percent occupancy.
c. starting with zero and justifying every budgeted item.
d. anticipated revenue equaling anticipated expenses. - Answer-✅C: starting with zero
and justifying every budgeted item.
/.A property manager should consider refusal of management when:
a. the manager lacks the expertise to properly handle management.
b. the owner refuses to allow the manager to take any action without prior approval.
c. the owner wants the manager to avoid making repairs.
d. for all of the above situations. - Answer-✅D: for all of the above situations.
/.A slumlord wants:
a. maximum rents with minimum tenant services.
b. minimum rents and minimum tenant services.
c. maintenance to take precedence over revenue.
d. the manager to think in terms of long-term benefits of properly maintaining
property. - Answer-✅A: maximum rents with minimum tenant services.
/.Negative cash flow management involves:
a. tax free income.
b. continued infusion of cash by the owner.
c. unreported cash income.
d. preparing records showing cash expenses that were not actually paid. - Answer-✅B:
continued infusion of cash by the owner.
/.The length of a management contract should:
a. never be less than five years.
b. be under one year.
c. ideally be on a month-to-month basis.
d. be related to problems to be corrected and services to be provided. - Answer-✅D: be
related to problems to be corrected and services to be provided.
/.A management contract can be terminated because of:
a. bankruptcy of either party.
b. mutual agreement between owner and manager.
c. impossibility of performance.
d. any of the above. - Answer-✅D: any of the above.
/.A management contract cannot be unilaterally canceled by an owner when:
a. the manager does not wish cancellation.
b. the manager has an interest coupled with an agency.
c. the owner owes the manager an outstanding debt.
WITH COMPLETE SOLUTIONS
/. The high-rise office buildings were made possible because of:
a. the moldboard plow.
b. structural steel.
c. the electric elevator.
d. both b and c. - Answer-✅D: Both B and C
/.Which of the following property management areas
employ the largest number of people?
a. Franchise leasing
b. Government
c. REIT management
d. Private management firms - Answer-✅B: Government
/.Characteristics of REITs include:
a. publicly traded.
b. purchasers of large properties.
c. not taxed on profits passed on as dividends.
d. all of the above. - Answer-✅D: All of the above
/.Benefits offered by professional property management include:
a. lower vacancy factors.
b. higher rents.
c. prolonging economic life.
d. all of the above. - Answer-✅D: All of the above
/.Personal attributes for success in property management include:
a. people skills.
b. goal oriented.
c. flexibility.
d. all of the above. - Answer-✅D: All of the above
/.CPM stands for:
a. Certificate in Property Management.
b. Corporate Property Manager.
c. Certified Property Manager.
d. Consumer Protection Marketing. - Answer-✅C: Certified Property mangager
,/.ARM stands for:
a. Association of Retail Managers.
b. Accredited Residential Manager.
c. American Restaurant Management.
d. Alliance of Residential Managers. - Answer-✅B: Accredited Residential Manager
/.AMO stands for:
a. Accredited Management Organization.
b. American Maintenance Organization.
c. Association of Management Officers.
d. Alliance of Management Organizations. - Answer-✅A: Accredited Management
Organization
/.BOMA stands for:
a. Benevolent Order of Managing Agents.
b. Building Owners and Managers Association.
c. Builders, Operators, and Managers Alliance.
d. Building Operators Maintenance Association. - Answer-✅B: Building Owners and
Managers Association
/.RPA stands for:
a. Real Property Administrator.
b. Residential Property Administrator.
c. Real Estate Professional Alliance.
d. Repair, Protect, and Administer. - Answer-✅A: Real Property Administrator
/.Benefits of ownership of investment property include all, except:
a. risk.
b. appreciation.
c. pride of ownership.
d. capital gains tax on sale profits. - Answer-✅A: Risk
/.A property analysis included in a management plan would cover:
a. the locational advantages and disadvantages of the property.
b. the physical structure.
c. current tenants and rents.
d. all of the above. - Answer-✅D: All of the above
/.What is a Pro-Forma Statement?
a. The current rent schedule
b. An audited operating statement
c. A statement as to anticipated rents and expenses
d. A chart showing the changes in vacancies - Answer-✅C: A statement as to
anticipated rents and expenses
, /.Zero-based budgeting is based on:
a. no expenses for maintenance.
b. 100 percent occupancy.
c. starting with zero and justifying every budgeted item.
d. anticipated revenue equaling anticipated expenses. - Answer-✅C: starting with zero
and justifying every budgeted item.
/.A property manager should consider refusal of management when:
a. the manager lacks the expertise to properly handle management.
b. the owner refuses to allow the manager to take any action without prior approval.
c. the owner wants the manager to avoid making repairs.
d. for all of the above situations. - Answer-✅D: for all of the above situations.
/.A slumlord wants:
a. maximum rents with minimum tenant services.
b. minimum rents and minimum tenant services.
c. maintenance to take precedence over revenue.
d. the manager to think in terms of long-term benefits of properly maintaining
property. - Answer-✅A: maximum rents with minimum tenant services.
/.Negative cash flow management involves:
a. tax free income.
b. continued infusion of cash by the owner.
c. unreported cash income.
d. preparing records showing cash expenses that were not actually paid. - Answer-✅B:
continued infusion of cash by the owner.
/.The length of a management contract should:
a. never be less than five years.
b. be under one year.
c. ideally be on a month-to-month basis.
d. be related to problems to be corrected and services to be provided. - Answer-✅D: be
related to problems to be corrected and services to be provided.
/.A management contract can be terminated because of:
a. bankruptcy of either party.
b. mutual agreement between owner and manager.
c. impossibility of performance.
d. any of the above. - Answer-✅D: any of the above.
/.A management contract cannot be unilaterally canceled by an owner when:
a. the manager does not wish cancellation.
b. the manager has an interest coupled with an agency.
c. the owner owes the manager an outstanding debt.
