Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

BROKER EXAM > LESSON 1 > Flashcards

LESSON 1 Flashcards

1
Q

Gross Domestic Product (GDP) represents . . . .

A

ANSWER

The Gross Domestic Product (GDP) represents the money value of all final goods and services that our economy produces during a specific period (usually one year) and includes returns on foreign capital invested in Canada.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

TRUE OR FALSE?
GDP can be expressed either in current dollars or in real terms using a given base year (e.g., in millions of 2002 dollars, seasonally adjusted at annual rates).

A

ANSWER: TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

List 4 of the “Goods Producing Industries?”

A

ANSWER:

agriculture, forestry, fishing and hunting

mining and oil and gas extraction

utilities

construction

manufacturing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

TRUE OR FALSE?

The trend in GDP for the goods producers has been in decline

A

ANSWER: TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

List 3 Service Producing Industries

A

ANSWER:

wholesale trade

retail trade

transportation and warehousing

finance, insurance, and real estate (FIRE)

leasing and management of companies and enterprises

educational services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

The trend in Canada, as in all industrialized nations, has been towards an _______ (INCREASE OR DECREASE?) in the importance of the service sector’s contribution to GDP

A

ANSWER

The trend in Canada, as in all industrialized nations, has been towards an INCREASE in the importance of the service sector’s contribution to GDP

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

TWO CATEGORIES OF ORGAINIZATIONS THAT PROVIDE OVERSIGHT TO THE REAL ESTATE BROKERAGE INDUSTRY IN BRITISH COLUMBIA

A

ANSWER:

1. the organizational structure created by the statutory regulation of the industry; and

2. the voluntary structure created by professional organizations that exist to fulfil objectives not addressed by government regulation.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

NOTE ONLY
The provinces have sole jurisdiction to make laws concerning property and civil rights, education, municipal organization, professions and licensing, and all matters of a purely local nature.

A

NOTE ONLY
The provinces have sole jurisdiction to make laws concerning property and civil rights, education, municipal organization, professions and licensing, and all matters of a purely local nature.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

The purpose of RESA is to protect the public by:

A

ANSWER:

The purpose of RESA is to protect the public by:

minimum competency requirements in order to obtain a licence;

setting standards to ensure that licensees conduct themselves appropriately while licensed; and

establishing a body called the Real Estate Council of British Columbia to administer RESA, subject to the oversight and direction of the Superintendent of Real Estate.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Under the Real Estate Services Act (RESA), the role of the Superintendent is to. . . . .

A

ANSWER:

The role of the Superintendent is to:

Oversee and direct the operations of the Real Estate Council,

including

- investigate a particular matter;

- issue a notice of discipline hearing to a licensee believed to have committed professional misconduct or conduct unbecoming a licensee; establish committees for certain purposes;

make a new bylaw or amend or repeal an existing bylaw;

require certain information be included in discipline orders and other communications by the Real Estate Council;

provide reports to the Superintendent of Real Estate to provide assessments of the operations and activities of the Real Estate Council; and

engage independent third parties on the operations and activities of the Real Estate Council.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Real Estate Council of British Columbia (“RECBC”). mandate ?

A

RECBC’s mandate is to protect the public interest by enforcing the licensing and licensee conduct requirements of RESA under the direction and oversight of the Superintendent.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Real Estate Council consists of . . . .

A

The Real Estate Council consists of 16 individuals, who are to be appointed by the Lieutenant Governor in Council.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Real Estate Council Responsibilities?

List 3?

A

The Council is responsible for

- the licensing education programs,

- issuing real estate licences, and

- supervising real estate practices in order to protect the interests of the public, under the direction and oversight of the Superintendent of Real Estate.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

How does the Real Estate Errors and Omissions Insurance Corporation protect the public?

A

Protects the public from losses resulting from errors, omissions, or negligent acts committed by licensees.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

The _ _ _ _ _ _ _ is intended to provide compensation to persons in relation to a real estate transaction for funds that were misappropriated, or intentionally not paid or accounted for by a licensee

A

The SPECIAL COMPENSATION FUND is intended to provide compensation to persons in relation to a real estate transaction for funds that were misappropriated, or intentionally not paid or accounted for by a licensee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

LIST 4 VOLUNTARY ORGANIZATIONS?

A

VOLUNTARY ORGANIZATIONS

  • Canadian Real Estate Association.
  • British Columbia Real Estate Association
  • Real Estate Boards
  • Real Estate Institute of British Columbia
  • Real Estate Institute of Canada
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

TRUE OR FALSE?

All statutory laws relating directly to land and the licensing of real estate brokerage personnel are passed by the provincial government.

A

ANSWER: TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

THREE PRIMARY OBLIGATIONS OF BCREA

A

BCREA has three primary obligations:

public relations,

government consultation and

the ongoing education of licensed REALTORS

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

TRUE OR FALSE?

A brokerage may only be run through a corporation?

A

ANSWER: FALSE​

The brokerage may be either a corporation, individual, or partnership.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Several brokerages within a geographic area will form a _ _ _ _ _ _

A

Several brokerages within a geographic area will form a REAL ESTATE BOARD

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Objectives of Real Estate Boards?

A

OBJECTIVES OF R/E BOARDS

- continuing professional education;

- enhancement of the reputation

- adoption and maintenance of the Code of Ethics and Standards of Business Practice;

-active participation in legislative changes affecting the real estate industry.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

_ _ _ _ _ _ also carry out the important function of maintaining the multiple listing service for members.

A

REAL ESTATE BOARDS carry out the important function of maintaining the multiple listing service for members.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

TRUE OR FALSE?

It is a condition that any user of the multiple listing service be a member of that particular real estate board.

A

ANSWER: TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

There are many different business organizations (EG: sole propiertorship, paternership, or corporation) through which a real estate broker may operate a real estate brokerage. The method chosen DEPENDS ON . . .

A

There are many different business organizations (EG: sole propiertorship, paternership, or corporation) through which a real estate broker may operate a real estate brokerage. The method chosen depends on the needs and experiences of each broker

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

A broker carrying on business alone without incorporating, the business takes the form of a _ _ _ _ _ _ _

A

A broker carrying on business alone without incorporating, the business takes the form of a SOLE PROPRIETORSHIP

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

When would setting up a brokerage as a sole proprietorship make sense?

A

ANSWER:
Person first setting up business, where it is unlikely that there will be a business partner, and where profits are uncertain

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

TRUE OR FALSE?
A proprietorship does not pay income taxes. Instead, the profits of the proprietorship accrue to the owner.

A

ANNSWER: TRUE

28
Q

Most important disadvantage of a sole proprietorship?

A

ANSWER: Owner has unlimited liability

29
Q

Key to determine if a business is a partnership?

A

ANSWER:

The key to determining whether or not there is a partnership is whether or not the parties are acting as agents for and on behalf of each other and whether there is any sharing of profits of the business.

30
Q

NOTE ONLY

If two or more people form a partnership, they are required under the Partnership Act to file a declaration of partnership with the Registrar of Companies, giving a brief description of the partnership, though the failure to do so does not mean that you have not created a partnership. This declaration must be filed within three months of the formation of the partnership.

A

NOTE ONLY

If two or more people form a partnership, they are required under the Partnership Act to file a declaration of partnership with the Registrar of Companies, giving a brief description of the partnership, though the failure to do so does not mean that you have not created a partnership. This declaration must be filed within three months of the formation of the partnership.

31
Q

**TRUE OR FALSE?

The partnership itself does not pay income taxes​**

A

**ANSWER

TRUE**

32
Q

HOW IS INCOME EARNED FROM A PARTNERSHIP TAXED?

A

**ANSWER:

Income of a partnership is determined at the partnership level and is allocated to the partners in proportion to their partnership interest. The tax payable in the case of individual partners is then determined by referring to their individual marginal tax rates.**

33
Q

Major disadvantage of a partnerhsip?

A

ANSWER:

Except for corporate partners, all partners have unlimited personal liability.

Each partner is personally responsible for the losses of the business and may be responsible for the wrongful acts of fellow partners if they are committed in connection with the business of the partnership. ​

34
Q

___________ are the most common form of business organization used by small, medium, and large businesses in Canada.

A

CORPORATIONS are the most common form of business organization used by small, medium, and large businesses in Canada.

35
Q

Shareholders in a corporation have _ _ _ _ _ _ with respect to the debts of the company.

A

ANSWER:

Shareholders in a corporation have LIMITED LIABILITY with respect to the debts of the company.

36
Q

Advantages of a corporation for raising money / capital?

A

The use of shares allows a larger number of people to pool their money

The company can sell its shares privately or through a stock market.

By selling shares rather than borrowing money, the company reduces the cost of its capital and thereby reduces its operating costs.

37
Q

**TRUE OR FALSE?

If two or more people form a partnership, they are required under the Partnership Act to file a declaration of partnership with the Registrar of Companies, giving a brief description of the partnership, though the failure to do so does not mean that you have not created a partnership.**

A

ANSWER: TRUE

38
Q

It is very important that partners establish their rights, duties, and obligations, and it is preferable that this be set out in a _ _ _ _ _ _ _

A

It is very important that partners establish their rights, duties, and obligations, and it is preferable that this be set out in a WRITTEN PARTNERSHIP AGREEMENT.

39
Q

LIST 3 TOPICS WHICH SHOULD BE FOUND IN A WRITTEN PARTNERSHIP AGREEMENT

A

PARTNERSHIP AGREEMENT

- purpose of the partnership;

- amount of capital contributed by each of the partners;

-method of financing

-manner in which profits will be distributed;

- method partners can sell their interest

- restrictions on the transfer interests

40
Q

TRUE OF FALSE?
The Partnership will pay income taxes on income earned

A

ANSWER: FALSE

Canada Revenue Agency treats a partnership in much the same way it treats a sole proprietorship.

The partnership itself does not pay income taxes. Income of a partnership (excluding certain deductions) is determined at the partnership level and is allocated to the partners in proportion to their partnership interest.

41
Q

If two or more people form a partnership, they are required under the Partnership Act to file a _ _ _ _ _ _ _ _ _ with the Registrar of Companies

A

ANSWER: If two or more people form a partnership, they are required under the Partnership Act to file a DECLARATION OF PARTNERSHIP with the Registrar of Companies

42
Q

NOTE ONLY

There is no legal way of restricting the authority of the various partners of the partnership; therefore the acts of one partner in conducting the business may bring liability upon all the partners even if the actions were not authorized by the other partners. Thus, partnerships are only suitable if a small number of people are involved and those people possess substantial trust and confidence in each other. Because a partnership, by definition, requires more than one party to be involved, it usually means that power within the partnership must be shared and that requires cooperation and goodwill among the partners.

A

NOTE ONLY

There is no legal way of restricting the authority of the various partners of the partnership; therefore the acts of one partner in conducting the business may bring liability upon all the partners even if the actions were not authorized by the other partners. Thus, partnerships are only suitable if a small number of people are involved and those people possess substantial trust and confidence in each other. Because a partnership, by definition, requires more than one party to be involved, it usually means that power within the partnership must be shared and that requires cooperation and goodwill among the partners.

43
Q

WHAT IS THE KEY ELEMENT TO DETERMINE IF A PARNERSHIP EXISTS?

A

ANSWER: The key to determining whether or not there is a partnership is whether or not the parties are acting as agents for and on behalf of each other and whether there is any sharing of profits of the business.

44
Q

TRUE OR FALSE?
Real estate boards oversee the conduct of their licensed members and arbitrate disputes between members.

A

ANSWER: TRUE

45
Q

What is the principal areas of dispute between licensees that real estate boards investigate?

A

ANSWER: The principal areas of dispute between licensees relate to the allocation of, and entitlement to, real estate commissions and may also involve complaints by licensees regarding the professional practices of other licensees.

46
Q

If a person is carrying on business and uses a business name other than their own name, they must file a ________ to that effect with the _________.

A

If a person is carrying on business and uses a business name other than their own name, they must file a DECLARATION to that effect with the REGISTRAR OF COMPANIES.

47
Q

Most small, privately held corporations do not raise the capital necessary for their operations by the sale of shares because _ _ _ _ _

A

ANSWER: Most small, privately held corporations do not raise the capital necessary for their operations by the sale of shares because the principals behind the company usually want to retain control.

48
Q

The rights and responsibilities of shareholders are determined by the _ _ _ _ _

A

ANSWER: The rights and responsibilities of shareholders are determined by the ARTICLES and NOTICE OF ARTICLES of the company

49
Q

TRUE OR FALSE?

Both the franchisor (the owner of the trade mark or concept) and the franchisee (the local operator) can be sole proprietorships, partnerships, or corporations, though they are almost always corporations.

A

ANSWER: TRUE

50
Q

A _ _ _ _ _ _ _ will often contain a number of restrictions on the franchisee, known as restrictive covenants.

A

A FRANCHISE AGREEMENT will often contain a number of restrictions on the franchisee, known as restrictive covenants.

51
Q

ADVANTAGES OF A FRANCHISE?

A

ANSWER:

Franchisee is able to take advantage of the established brand and reputation of the franchisor.

Franchisee is purchasing the experience of the franchisor in such areas as employee training and methods for operating the business, and also financial planning assistance.

In addition, the franchisee gains the benefit of being part of a larger regional, national, or international organization which offers a higher profile, economies of scale, and certain financial advantages.

52
Q

TRUE OR FALSE?

Manufacturing industries in Canada show a steep drop due to lower demand for Canadian manufactured goods, both domestically and internationally.

A

ANSWER: TRUE

53
Q

The ____________ is vested with the authority to investigate to determine whether a person is engaging in unlicensed activity and whether a licensee has, in a way that is seriously detrimental to the public interest, contravened RESA, or, breached a restriction.

A

The SUPERINTENDENT OF REAL ESTATE is vested with the authority to investigate to determine whether a person is engaging in unlicensed activity and whether a licensee has, in a way that is seriously detrimental to the public interest, contravened RESA, or, breached a restriction.

54
Q

TRUE OR FALSE?

Both the franchisor (the owner of the trade mark or concept) and the franchisee (the local operator) can be sole proprietorships, partnerships, or corporations, though they are almost always corporations

A

ANSWER: TRUE

55
Q

TRUE OR FALSE?

If two or more people form a partnership, they are required under the Partnership Act to file a declaration of partnership with the Registrar of Companies. Failure to register the partnership means the law will not recognize the entity as a partnership?

A

ANSWER: FALSE

If two or more people form a partnership, they are required under the Partnership Act to file a declaration of partnership with the Registrar of Companies, giving a brief description of the partnership. The failure to register a partnership DOES NOT mean that you have not created a partnership.

56
Q

What are the key factors in determining whether or not a partnership exists?

A

The key to determining whether or not there is a partnership is whether or not the parties are acting as agents for and on behalf of each other and whether there is any sharing of profits of the business.

57
Q

TRUE OR FALSE?

Real Estate Boards are “voluntary organizations”

A

ANSWER: TRUE

58
Q

TRUE OR FALSE?

The Real Estate Compensation Fund Corporation is an example of a Voluntary Organization?

A

ANSWER: FALSE

The Real Estate Compensation Fund Corporation is an example of a “STATUTORY ORGANZIATION”

59
Q

What is the role of the Superintendent of Real Estate?

A

The role of the Superintendent is to oversee and direct the operations of the Real Estate Council.

60
Q

TRUE OR FALSE?

A franchise agreement will often contain a number of restrictions on the franchisee, known as restrictive covenants.

A

ANSWER: TRUE

61
Q

What is The Real Estate Foundation? What are their duties?

A

The Real Estate Foundation of BC (REFBC), created through the Real Estate Services Act, is a philanthropic organization that works to advance sustainable land use in BC.

62
Q

TRUE OR FALSE?
Ownership of a corporation is more difficult to transfer than in the case of a sole proprietorship.

A

ANSWER: FALSE

63
Q

List 4 activities the Superintendent of Real Estate can direct the Real Estate Council to undertake?

A

The Superintendent of Real Estate can direct the Real Estate Council to:

  • investigate a particular matter;
  • issue a notice of discipline hearing to a licensee believed to have committed professional misconduct or conduct unbecoming a licensee;
  • establish committees for certain purposes;
  • make a new bylaw or amend or repeal an existing bylaw;
  • require certain information be included in discipline orders and other communications by the Real Estate Council;
  • provide reports to the Superintendent of Real Estate to provide assessments of the operations and activities of the Real Estate Council;
  • engage independent third parties on the operations and activities of the Real Estate Council.
64
Q

TRUE OR FALSE?

A brokerage may be either a corporation, individual, or partnership.

A

ANSWER: TRUE

65
Q

TRUE OR FALSE?

Real estate boards oversee the conduct of their licensed members and arbitrate disputes between members.

A

ANSWER: TRUE

66
Q

What are the principal areas of dispute between licensees that real estate boards arbitrate?

A

The principal areas of dispute between licensees relate to the allocation of, and entitlement to, real estate commissions and may also involve complaints by licensees regarding the professional practices of other licensees.

BROKER EXAM (9 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions