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Humber College Exam 4: Invigilated Theory Sample Questions:

1. Which of the following statements about economic development offices is NOT correct?

A) Economic development offices can help guide development applications through municipal processes and streamline the approvals process for companies unfamiliar with regulatory requirements.
B) Economic development offices can provide you with real property information regarding tax assessments and how to appeal your real estate taxes.
C) Economic development offices have important resources for those seeking suitable commercial sites for business operations.
D) Economic development offices provide background information on local, provincial, and federal research and development incentives.

2. Asset sale and share sale are two different ways to sell a business. Which statement describes an asset sale?

A) The seller benefits from a tax standpoint since any gain to the seller on the sale will be considered under the capital gains tax exemption.
B) The buyer assumes all assets and accepts all liabilities of the business.
C) The buyer is eligible for tax deductions and benefits by claiming capital cost allowance on depreciable property.
D) The buyer replaces the seller as the owner of the corporation.

3. Established under the Farming and Food Production Protection Act, the Normal Farm PracticesBoard is composed of members appointed by the Minister of Agriculture, Food and Rural Affairs. Which statement is NOT accurate with regard to the Normal Farm Practices Board?

A) The Board can conduct hearings that are heard by a minimum of five board members.
B) The Board can order farmers to modify practices for consistency with normal farm practices.
C) The Board can dismiss complaints if the disturbances are the result of normal farm practices.
D) The Board can order farmers to cease practices that cause disturbances if they are not considered to be normal farm practices.

4. A retail property buyer must consider the parking requirements associated with the site. All of the statements below are considerations for parking, EXCEPT:

A) Parking may be impacted by the municipality's parking bylaw.
B) There may be minimum width and depth requirements for parking spaces.
C) Required parking for persons with disabilities is usually fixed as a ratio based on the number of disabled persons in the community.
D) Parking may be impacted by zoning requirements.

5. A salesperson and their commercial seller client are discussing and preparing to list the seller's office building. The topic of defects comes up and the seller wants to know what the salesperson will have to disclose. Which of the following is an accurate statement regarding the disclosure of defects?

A) The salesperson should not disclose material latent defects that are known to the seller that could reduce the price or the marketability of the property.
B) The salesperson should discuss patent defects known to the seller of the office building with the seller and disclose them to a buyer.
C) The salesperson should not disclose latent defects that are known to the seller as they could affect the seller's ability to obtain a high price for the property.
D) The salesperson should discuss latent defects known to the seller of the office building with the seller and disclose them to a buyer.

Solutions: