please do this blackboard assignment #4 part II Chapters 7 & 8 docs uploaded Real estate brokerage.

BB Assignment# 4

1. Should a company go through the planning process?

a. No, planning only raises expectations, so it is better to "go with the flow."

b. Yes, if the owner can find business-savvy friends to help with the plan.

c. No, investing time and money in preparing a business plan is an unnecessary

use of resources.

d. Yes, planning can identify the methodology needed to meet the company's goals.

2. What is the purpose of a business plan?

a. Directs the organization's financial and human resources to the activities that yield the greatest return on the investment

b. Preserves resources for customary activities even if they produce marginal results

c. Ensures that salespeople are satisfied with their commission splits

d. Provides the salespeople an opportunity to influence company direction

3. What does a good long-range plan do for a company?

a. Helps the company to readily shift course when instant results do not materialize

b. Helps the company be specific and not a wondering generality

c. Should be intimidating to the workers so that they do not interfere with management duties d. Provides decisions through the end of the year.

4. The mission statement is the foundation of long range planning and provides a. specific goals for the organization.

b. the fundamental purpose for the existence of an organization.

c. strategies by which the goals will be reached.

d. inspiration to members of the organization.

5. Contingency plans may be incorporated in the business plan to

a. establishes alternative goals and strategies in the case of unforeseen events. b. allow the organization to spend resources in uncontrolled ways.

c. provide methodology for accomplishing each goal.

d. provide the priorities during the timeframe of the plan.

6. The working document for managers at all levels in the organization to monitor the organization's progress over the course throughout the year is the

a. business plan.

b. executive summary.

c. contingency plan. d. activity plan.

7. The legal form of ownership in which the broker personally reaps all of the rewards of the business but also bears the responsibility and personal liability for its losses is

a. sole proprietorship.

b. limited liability company.

c. general partnership. d. S corporation.

8. Which of the following has unlimited liability? a. A stockholder in an S corporation

b. An investor in a limited liability company

c. A general partner in a limited partnership

d. A stockholder in a corporation

9. The MOST common reason brokers join franchises is

a. to enjoy maximum freedom to conduct their own affairs.

b. to obtain the professional marketing and advertising expertise. c. to be able to follow the program laid out by the franchise.

d. because they are relatively inexpensive to join.

10. When joining forces with another real estate company, which is likely to have the MOST significant bearing on the success of the new venture?

a. Geographic location of the company's office

b. Company's affiliation with a franchise

c. Retention of the organization's sales force d. Company's presence on the Internet

11. A small centralized operation in which the broker supervises the sales associates or hires a sales manager describes a a. one-person organization.

b. one- to ten-agent organization.

c. monolithic organization.

d. decentralized organization.

12. What is a benefit, if any, to business planning?

a. No immediate tangible benefits, but sometimes can be useful

b. Only useful over a long period of time, five to ten years

c. Difficult to turn the hopes and aspirations mentioned in the plan into concrete expectations

d. Directs the financial and human resources to activities that yield the greatest return on investment

13.. What is the primary reason a business plan should be prepared? a. Management books say it is important

b. All other functions of management depend on the business plan c. Needed to obtain a bank loan

d. Useful to impress potential clients

14. A general or strategic plan should extend out for a. six months.

b. one year.

c. three years.

d. a minimum of five years.

15. When formulating strategies to reach specific goals, management should

a. preserve activities in which the company customarily engages.

b. focus on positives, obstacles will take care of themselves.

c. determine the availability of human and financial resources to overcome obstacles. d. focus on obstacles to deter any action.

16. Why are many business plans segmented into quarterly goals? a. Standard for the industry

b. Management is not required to plan much further ahead

c. Cannot forecast with any certainty beyond three to four months d. Provide readily identifiable benchmarks

17. A short-range business plan consists of the goals and strategies that will be accomplished within a. 6 months.

b. 12 months.

c. 24 months.

d. 36 months.

18. At what stage is a company MOST likely to be energetic, becoming more ambitious? a. Birth

b. Growth

c. Midlife

d. Maturity

19. One of the major disadvantages of a corporation is a. its limited liability.

b. the double taxation of profits.

c. the transferability of its corporate stock.

d. its perpetual existence.

20. A broker wants to remain an independent owner. However, she would also like national exposure and access to expert training for her agents. What option should she choose?

a. Franchise

b. Affiliated business arrangements (AfBA)

c. National corporate acquisition

d. Merge locally with other real estate offices

21. One of the advantages of purchasing an existing real estate brokerage business is a. quickly establishing a presence in the marketplace.

b. duplicate systems that decrease efficiencies.

c. redundant personnel that increase basic costs.

d. working with different business philosophies.

22. The chain of command in an organization is the

a. order of authority for decision-making.

b. autocratic structure within an organization.

c. job description for each position in an organization. d. management principle behind planning.

23.A long-range, general, or strategic plan typically spans

1. one year.
2. two years.
3. three to five years.
4. five or more years.

24. What is the brief statement that outlines the organization's fundamental purpose for existing?

1. General objectives
2. Overall goals
3. Strategies
4. Mission statement

25. In a business plan, the general objectives become the organization's

1. priorities during the timeframe of the plan.
2. plans for what to do if the economy changes.
3. outline for how to achieve profitability.
4. foundation on which the business enterprise is built.

26. Knowing profitability allows an organization to

1. recognize if the organization must borrow money to continue operations.
2. validate the way that the organization is operating in pursuit of its goals.
3. borrow more capital for expansion.
4. illustrate that real estate licensees should join the firm.

27. An organization's mission statement is, "the company is in business to be successful." This mission statement

1. says exactly what the business expects to do.
2. states where the business expects to be in the future.
3. states the purpose for the business to exist.
4. says that business hopes to survive, but says little more.

28.The broker wants to establish a relocation department. Which of the following is a strategy to accomplish this?

1. Make the necessary preparations and plan allocation of resources to that end
2. Increase the number of referrals from corporate clients
3. Establish alternatives in case the new enterprise does not make money
4. Create the best referral network in the geographical area

29. What kind of planning provides alternatives for the organization in the case of certain events?

1. Short-range planning
2. Contingency planning
3. Activity planning
4. Tactical planning

30. What is usually written last but included first in the formal planning document?

1. Mission statement
2. Executive summary
3. General strategies
4. Long-term goals

31. What is necessary if the business plan is to be successfully implemented?

1. Contingency plans
2. Tactical planning
3. Executive summary
4. General objectives

32. How often should management review the long-range plan?

1. Semiannually
2. Annually
3. Biannually
4. Every three years

33. What government agency, if any, requires that franchisors provide extensive information about their franchise in the uniform franchise offering circular (UFOC)?

1. Federal Trade Commission (FTC)
2. Department of Housing and Urban Development (HUD)
3. Department of Justice (DOJ)
4. No federal government agency mandates franchise disclosures, only state agencies

34. What type of arrangement could become an issue under the Real Estate Settlement Procedures Act (RESPA)?

1. Franchise offerings
2. Affiliating with a national corporation
3. Affiliated business arrangement
4. Cooperative listing services

35. An existing real estate company plans to expand its geographic territory. An excellent way to do this is to

1. acquire an existing company already located in the new territory.
2. open a second office, hiring new salespeople to staff it.
3. buy into a franchise organization.
4. form a new company with existing salespeople as the shareholders.

36. One of the riskiest ways to recruit experienced salespeople is to

1. affiliate with a multiple listing service.
2. join a franchise.
3. acquire another real estate company.
4. require a college degree.

37. What is one of the MOST difficult tasks when acquiring an existing business?

a. b. c. d.

38. The

a. b. c. d.

Evaluating its managers

Appraising its value

Assessing the condition of its office equipment Avoiding rumors

order in which authority travels in an organization is known as the

chain of command. line of authority. informal organization. staff of authority.

39. In a

achievement of the company's objectives?

real estate organization, what authority is typically given to the people responsible for contributing directly to the

1. Staff authority
2. Support service authority
3. Line authority
4. Supervisory authority

40. The BEST way to ensure that workers know exactly what to do in the company is to

1. give them a flow chart of the organization.
2. give them authority to make decisions.
3. allow them to be creative.
4. develop job descriptions for each position.