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Humber College PREX-1060A Exam Syllabus Topics:

Humber College Exam 4: Invigilated Theory Sample Questions:

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

2. Many industrial users install one or more cranes on their properties to move heavy items. Which type of industrial crane has an arm attached at an angle to a rotating mast that permits 360-degree swiveling around that mast?

A) Overhead crane
B) Jib crane
C) Bridge crane
D) Gantry crane

3. Which of the following statements about industrial building components is correct?

A) Flat roofs are designed to be flat to hold water.
B) Floor load refers to the weight of the building during construction.
C) Loading docks are only used to off-load products or raw materials.
D) Bay depth is an important consideration when determining the layout of an industrial process.

4. A lender completes a financial statement analysis and calculation on various ratios that would indicate the financial performance of the commercial building. Which of the following is NOT correct?

A) Lenders will apply various financial ratios to get a solid understanding of the business's performance and the ability of the borrower to service debt.
B) It does not matter; mortgaging does not affect cash flow and yields.
C) The investor is afforded the opportunity to enhance yield.
D) The success of ventures often rests in the availability and suitability of financing.

5. A new commercial condominium project is completed, and the buyers are given an occupancy date. On the occupancy date, a few of the buyers move into their units and begin setting up their operations. That evening, there is a severe thunderstorm. In the morning, several of the buyers start to notice roof leaks. Some of the buyers call the builder's office while others call their salespersons.Which of the following is an accurate statement regarding the building's warranty coverage?

A) The buyers should draft a list of all their concerns and submit them to the municipality for appropriate coverage.
B) There is no provincial warranty coverage for commercial condominiums, but the buyers can inquire with the builder about any warranties that they may offer.
C) The buyers should submit their concerns to the provincial warranty authority, as they are entitled to one- year warranty coverage from the occupancy date.
D) If the builder does not address this issue, the buyers can file a complaint with the provincial warranty authority for any outstanding work the builder did not complete.

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