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M100 Community Association Management Exam &
Practice Exam||Verified Exam!!!|| Questions and
Answers Practice Questions with Solutions Newest |
Already Graded A+||Newest Exam!!!!
Complete the following sentence: The __________ bring
the community association into existence, define its basic
purposes and powers, and indicate whether stock will be
issued.
a. recorded map, plat, or plan
b. declaration, CC&Rs, or master deed
c. proprietary lease or occupancy agreement
d. articles of incorporation - Answer-d. articles of
incorporation
A community association's corporate structure is
established when a developer sets up the association. The
developer files articles of incorporation—sometimes called
a corporate charter—with the appropriate state corporation
agency.
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True or False. The public offering statement is a governing
document, as it often distributed along with the governing
documents. - Answer-False
The public offering statement is not a governing document;
instead, it is simply a disclosure statement that provides
information on the community association to prospective
buyers.
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 documents
d. court decisions - Answer-a. survey data
All three types of legal sources—state statutes, governing
documents, and court decisions—specify the authority or
power of different parties in a community association and
the responsibilities or duties of the different parties.
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True or false. The basic authority in a community
association lies with the developer. - Answer-False
The basic authority in a community association lies with
the owners. In order for the association to govern
effectively the owners elect a board of directors to act on
their behalf. The governing documents delegate most of
the association's decision-making powers to a board.
Complete the following sentence: 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 - Answer-b. fiduciary duty
The board's fiduciary duty has two components: (1) Board
members are required to avoid conflicts of interest and
acting out of self-interest. (2) They are also required to act
as reasonable people in managing the association's
affairs.
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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. - Answer-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 - Answer-d. mandatory
committees
A mandatory committee is one that is required by the
governing documents. Mandatory committees typically are
M100 Community Association Management Exam &
Practice Exam||Verified Exam!!!|| Questions and
Answers Practice Questions with Solutions Newest |
Already Graded A+||Newest Exam!!!!
Complete the following sentence: The __________ bring
the community association into existence, define its basic
purposes and powers, and indicate whether stock will be
issued.
a. recorded map, plat, or plan
b. declaration, CC&Rs, or master deed
c. proprietary lease or occupancy agreement
d. articles of incorporation - Answer-d. articles of
incorporation
A community association's corporate structure is
established when a developer sets up the association. The
developer files articles of incorporation—sometimes called
a corporate charter—with the appropriate state corporation
agency.
,2|Page
True or False. The public offering statement is a governing
document, as it often distributed along with the governing
documents. - Answer-False
The public offering statement is not a governing document;
instead, it is simply a disclosure statement that provides
information on the community association to prospective
buyers.
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 documents
d. court decisions - Answer-a. survey data
All three types of legal sources—state statutes, governing
documents, and court decisions—specify the authority or
power of different parties in a community association and
the responsibilities or duties of the different parties.
,3|Page
True or false. The basic authority in a community
association lies with the developer. - Answer-False
The basic authority in a community association lies with
the owners. In order for the association to govern
effectively the owners elect a board of directors to act on
their behalf. The governing documents delegate most of
the association's decision-making powers to a board.
Complete the following sentence: 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 - Answer-b. fiduciary duty
The board's fiduciary duty has two components: (1) Board
members are required to avoid conflicts of interest and
acting out of self-interest. (2) They are also required to act
as reasonable people in managing the association's
affairs.
, 4|Page
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. - Answer-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 - Answer-d. mandatory
committees
A mandatory committee is one that is required by the
governing documents. Mandatory committees typically are
