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Humber College Exam 4: Invigilated Theory Sample Questions:

1. A tenant is renting 4,000 square feet of space in a commercial shopping center under a net lease. The base rent is $20 per square foot per annum, and there is a percentage rent of 5% of gross sales over the base rent. The tenant has annual gross sales of $1,000,000. The annual expenses are $10 per square foot. How much annual base rent does the tenant have to pay?

A) $80,000
B) $130,000
C) $60,000
D) $120,000

2. There are different requirements under REBBA and other legislation that affect the sale of a business. Which of the following is NOT correct?

A) There are various municipal bylaws that could impact the sale of a business, depending on the business activity.
B) Depending on the business location, there are various municipal bylaws, zoning, permits, and other rules and regulations that could impact the sale of a business.
C) A key consideration a salesperson must keep in mind when handling the sale of a business is operating licenses.
D) If a municipal license is associated with the business and it may be transferrable to the buyer, then it is of no concern to the sales representative.

3. There are three primary items that require attention when countering an offer from a seller. Which of the following items does NOT need to be checked?

A) The balance due clause
B) The purchase price
C) The date of the agreement of purchase and sale
D) The irrevocability clause

4. 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) Jib crane
B) Bridge crane
C) Gantry crane
D) Overhead crane

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: