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Humber College Exam 4: Invigilated Theory Sample Questions:

1. Finish the sentence: When a commercial tenant enters an agreement to lease, the covenant to pay rent specifies that the tenant:

A) Agrees to pay any percentage rent a landlord demands, regardless of sales revenue.
B) Cannot pay rent to the property manager and must pay directly to the property owner.
C) Agrees to pay additional rent for a gross lease.
D) Cannot withhold rental payments even if the landlord does not comply with their obligations under the lease.

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

3. A salesperson is negotiating a lease for a new retail tenant and reviewing the requirements and restrictions regarding the delivery of stock items. Which of the following is NOT a correct statement regarding stock delivery requirements and restrictions in a commercial lease?

A) The salesperson is responsible for addressing site access and exit in the tenant's agreement to lease.
B) Should a delivery truck arrive during an emergency, the property manager must be available.
C) The salesperson is responsible for negotiating the tenant's stock delivery window.
D) Stock delivery cannot be restricted in a commercial agreement to lease.

4. In regard to Environmental Site Assessments (ESAs), which of the following is NOT accurate?

A) Every new commercial property must undergo an ESA prior to construction.
B) Local building departments use ESAs as the basis for changes to municipal zoning bylaws.
C) ESAs are regulated under the Canadian Environmental Protection Act.
D) An ESA is intended to determine if a property has been contaminated or is facing any environmental threats.

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

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