Humber College Exam 4: Invigilated Theory - PREX-1060A

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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

1. A landlord and a tenant have signed an agreement to lease an office space. Prior to the transaction closing, an unforeseeable event occurs that is not the fault of either party. Which statement about the return of the tenant's deposit is NOT correct?

A) The tenant can have the deposit back without signing a mutual release as it is not their fault.
B) The agreement may contain a clause forfeiting all of the deposit if the landlord has started work on the premises.
C) The landlord and tenant may agree to split the deposit.
D) The parties may need to obtain a court order that clarifies how the deposit will be returned and distributed.

2. Examples of properties which would warrant a Phase 2 environmental assessment may include heavy industrial sites. Which of the following is NOT an example of a heavy industrial use?

A) Power stations
B) Petroleum storage and distribution sites
C) Chemical manufacturers
D) Computer training institute

3. Audited and unaudited statements provide the financial status of a business to potential buyers. What is the main difference between audited and unaudited financial statements?

A) Audited financial statements comply with Generally Accepted Accounting Principles (GAAP); unaudited financial statements do not comply with GAAP.
B) Unaudited financial statements are prepared by Chartered Professional Accountants; audited financial statements are prepared by senior Chartered Professional Accountants.
C) Audited financial statements provide an accurate picture of the financial status of a business; unaudited financial statements may only contain partially reviewed information.
D) Unaudited financial statements are prepared by accounting students; audited financial statements are completed by accountants who have received their professional designation.

4. Location preferences and accessibility are important when matching a potential buyer client with an appropriate commercial property. Which of the following is NOT a location preference consideration?

A) Demographics
B) Traffic counts
C) Surrounding uses
D) Financial health of the company

5. Finish the sentence: The Employment Standards Act:

A) Regulates matters involving ownership of a business.
B) Regulates trade names.
C) Specifies the terms of a business partnership agreement.
D) Protects the rights of workers of a business that is being sold.

Solutions: