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Random CMCA Practice Test Questions
With Correct Answers
Which /of /the /following /is /a /common /management /control /for /ensuring /maintenance /work /is /performed /in /a /timely /manner? A. /A /purchase /order /system B. /An /equipment /warranties C. /A /work /order/response /form D. /A /contractor's /invoice /- /correct /answer(s) /✔✔ /C. /A /work /order/response /form /- /A, /B, /and /D /speak /to /elements /OTHER /than /a /control /to /ensure /maintenance /work /is /completed. The /primary /management /control /tool /for /identifying /whether /the /association /needs /to /maintain /a /particular /property /element /is: A. /Physical /inspections B. /Association /bylaws C. /Maintenance /responsibility /chart D. /Community /asset /inventory /- /correct /answer(s) /✔✔ /C. /Maintenance /responsibility /chart /along, /with /the /governing /documents, /defines /parameters /of /association /maintenance /responsibility. The /other /answers /have /no /bearing /on /necessity /of /maintenance /or /maintenance /responsibility. In /what /type /of /a /contract /would /a /waiver /of /lien /by /recommended?
A. /Repair /of /the /HVAC /system B. /Re-roofing /the /buildings C. /Repair /of /the /pool /pump D. /Annual /tree /pruning /- /correct /answer(s) /✔✔ /B. /Re-roofing /the /buildings /- /Large /contracts /involving /significant /material /purchase /and/or /use /of /sub-contractors /commonly /include /lien /waivers /and /should /be /recommended /to /the /board. A, /C, /and /D /typically /do /not /include /significant /material /purchases /or /the /use /of /sub- contractors /so /a /waiver /of /lien /is /not /necessary. What /does /"Co-Insurance" /obligate /the /Association /to /do? A. /Pay /the /deductible B. /Maintain /certain /limits /of /insurance C. /Cover /the /depreciated /value /of /all /association /buildings D. /Provide /insurance /for /homeowners /- /correct /answer(s) /✔✔ /B. /Maintain /certain /limits /of /insurance /- /Co-insurance /seeks /to /the /limits /of /insurance /in /place /at /the /time /of /a /loss /and /speaks /to /insurance /obligation /for /the /parties /involved /in /the /claim. When /an /association /contracts /out /all /of /its /services /and /has /no /employees, /it /is /a /best /business /practice /to: A. /Negotiate /contracts /within /the /bidding /process. B. /Purchase /employment /practices /liability /insurance. C. /Assume /the /contractors /carry /their /own /insurance /coverage. D. /Increase /the /coverage /under /the /D&O /insurance /policy. /- /correct /answer(s) /✔✔ /A. /Negotiate /contracts /within /the /bidding /process.
/maintained /on /the /accrual /basis /and /other /accounts, /such /as /interest /or /other /miscellaneous /income /accounts, /and /some /expenses, /such /as /miscellaneous /repairs, /are /maintained /on /a /cash /basis. /The /accrual /of /major /expenses /in /particular, /such /as /a /contract /for /landscaping, /trash /removal, /etc., /regardless /of /non-receipt /invoices, /gives /the /read /a /much /more /accurate /depiction /of /the /association's /financial /standing, /as /the /accruals /serve /to /alert /the /reader /to /recognition /of /obligations /that /the /association /must /meet. TRUE /OR /FALSE: The /basic /authority /in /a /community /association /lies /with /the /developer. /- /correct /answer(s) /✔✔ /FALSE The /board /of /directors /in /a /community /association /has /a /_____________ /to /act /in /the /best /interests /and /for /the /benefit /of /the /community /as /a /whole. a. /bond b. /fiduciary /duty c. /ballot d. /quorum /- /correct /answer(s) /✔✔ /b. /fiduciary /duty When /developing /a /rule, /it /must /be /consistent /with: A. /Fine /schedules /as /approved /by /the /courts B. /Board /recommendations /and /resolutions C. /Guidelines /established /within /the /governing /documents D. /Applicable /statues /and /governing /documents /- /correct /answer(s) /✔✔ /D. /Applicable /statues /and /governing /documents. /Rules /cannot /conflict /with /statues /and /governing /documents.
In /an /initial /letter /you /send /to /an /owner /who /has /violated /one /of /the /association's /adopted /rules, /which /of /the /following /is /included? A. /The /amount /of /fine /assessed. B. /Steps /to /amend /the /rules. C. /The /offer /to /meet /to /hear /the /owner's /viewpoint. D. /What /the /outcome /of /similar /cases /has /been. /- /correct /answer(s) /✔✔ /C. /The /offer /to /meet /to /hear /the /owner's /viewpoint. /Best /way /to /get /compliance /is /to /let /owner /be /heard /and /explain /rule /to /the /owner. /Knowledge /Tested: /Successful /rule /enforcement /Procedures. If /the /governing /documents /and /laws /present /conflicting /notice /periods, /follow: a. /The /bylaws b. /State /laws c. /Your /attorney's /advice d. /Declarations /- /correct /answer(s) /✔✔ /b. /State /laws /- Which /of /the /following /is /a /duty /of /a /manager /attending /a /board /meeting? a. /Call /the /meeting /to /order. b. /Establish /the /agenda. c. /Take /the /minutes /of /the /meeting. d. /Be /the /time /keeper /- /correct /answer(s) /✔✔ /d. /Be /the /time /keeper /- In /older /condominiums, /an /association /should /have /what /type /of /contract /covering /mechanical /equipment?
Employees /are /finished /with /training /after /they /receive /their /initial /training /for /a /job. /- /correct /answer(s) /✔✔ /FALSE Which /of /the /following /is /an /example /of /an /association /control /system? a. /Frequent /neighborhood /inspections b. /Owner /garage /door /locks c. /Telephone /entry /system d. /Posting /police /department /information /on /building /bulletin /boards /- /correct /answer(s) /✔✔ /a. /Frequent /neighborhood /inspections /- /The /key /for /the /correct /answer /is /"control" /and /the /only /response /that /speaks /to /an /overall /system /of /control /is /frequent /neighborhood /inspections. /. TRUE /OR /FALSE: The /"business /judgement /rule" /means /that /if /a /board /has /exercised /reasonable /business /judgement /in /making /a /decision, /the /court /will /generally /not /consider /the /board /negligent /in /its /fiduciary /duty. /- /correct /answer(s) /✔✔ /TRUE Which /of /the /following /community /association /committees /typically /are /assigned /responsibilities /related /to /elections, /nominations, /and /architectural /standards? a. /standing /committees b. /professional /committees c. /ad /hoc /committees
d. /mandatory /committees /- /correct /answer(s) /✔✔ /d. /mandatory /committees Performance /_____________ /are /those /regular /and /special /tasks /management /expects /an /employee /to /perform /during /a /certain /time /period. a. /evaluation b. /goals c. /planning d. /standards /- /correct /answer(s) /✔✔ /b. /goals Where /would /a /manager /find /guidelines /regarding /the /association's /responsibility /for /maintaining /the /physical /assets? a. /equipment /warranties b. /Real /estate /sales /contract c. /Governing /documents d. /Board /resolutions /- /correct /answer(s) /✔✔ /d. /Board /resolutions /- /Maintenance /guidelines /are /established /by /Board /action. A /work /order: a. /Documents /current /maintenance /standards. b. /Identifies /what /needs /to /be /done /during /the /year. c. /Assigns /maintenance /tasks. d. /Is /a /punch-list /of /maintenance /needs. /- /correct /answer(s) /✔✔ /c. /Assigns /maintenance /tasks. /- /The /purpose /of /the /work /order /is /to /capture /needed /work /to /be /done /and /assign /the /work /to /the /appropriate /party/parties.
Which /of /the /following /federal /laws /regulate /working /conditions, /specialized /training, /safety /equipment, /the /posting /of /warnings /related /to /products /and /work /site /conditions, /and /the /reporting /of /accidents? a. /Fair /Labor /Standards /Act b. /Occupational /Safety /and /Health /Act c. /Federal /Insurance /Contributions /Act d. /Child /labor /laws /- /correct /answer(s) /✔✔ /b. /Occupational /Safety /and /Health /Act TRUE /OR /FALSE: An /agenda /is /more /than /an /announcement /of /the /order /of /business /for /a /meeting; /it /is /a /meeting /management /tool. /- /correct /answer(s) /✔✔ /TRUE Discipline /as /a /part /of /the /HR /management /can /include: a. /Counseling /the /employee b. /Selecting /using /a /progressive /system c. /Terminating /an /under-performing /employee d. /Gathering /performance /information /from /other /employees /- /correct /answer(s) /✔✔ /a. /Counseling /the /employee /- /Counseling /an /employee /and /providing /benchmarks /to /achieve /(and /penalties /for /short-falls) /is /part /of /the /discipline /process. What /is /the /primary /source /of /requirements /when /developing /the /association's /annual /maintenance /budget? a. /Governing /documents b. /State /law
c. /Annual /audit d. /Reserv /Study /- /correct /answer(s) /✔✔ /a. /Governing /documents /- /will /give /notice /requirements /and /budget /cap /information. A /notice /of /meeting /should /be /sent /in /writing /to /board /members /at /least /______ /before /meeting. a. /a /year b. / 2 /days c. / 3 /months d. /a /week /- /correct /answer(s) /✔✔ /d. /a /week A /significant /decline /in /the /amount /of /investments /is /most /likely /the /result /of: a. /Failure /to /invest /association /funds /properly. b. /Seasonal /timing /of /expenses. c. /Expenditures /out /of /reserve /funds. d. /Failure /to /collect /delinquent /assessments. /- /correct /answer(s) /✔✔ /c. /Expenditures /out /of /reserve /funds /- /The /reserve /funds /are /set /aside, /usually /in /investments /such /as /money /market /accounts /and /certificates /of /deposits, /for /the /purpose /of /funding /the /repair /or /replacement /of /major, /capital /components. /Therefore /the /appropriate /use /of /these /funds /will /result /in /a /decline /in /the /amount /of /investments. The /purpose /of /a /personnel /manual /or /employee /handbook /is: a. /Provide /a /format /for /job /evaluations. b. /Define /individual /job /descriptions. c. /Detail /the /programs /the /company /offers.
a. /Standing b. /Mandatory c. /Parent /Organization d. /Ad-hoc /- /correct /answer(s) /✔✔ /1. /b. /Mandatory
- /a. /Standing
- /d. /Ad-hoc A /work /order: a. /Documents /current /maintenance /standards. b. /Identifies /what /needs /to /be /done /during /the /year. c. /Assigns /maintenance /tasks. d. /Is /a /punch-list /of /maintenance /needs. /- /correct /answer(s) /✔✔ /c. /Assigns /maintenance /tasks. Which /of /the /following /responsibilities /relate /to /the /governance /function /of /a /community /association /board /of /directors? a. /Decide /issues /of /policy /for /the /owners /in /the /community. b. /Promote /harmony /through /service /programs /and /regular /communication /with /owners. c. /Monitor /financial /matters /for /the /purpose /of /preserving /and /enhancing /the /community. d. /Hear /appeals /of /committee /and /management /decisions /that /are /protested /by /groups /of /owners. /- /correct /answer(s) /✔✔ /a. /Decide /issues /of /policy /for /the /owners /in /the /community. Which /type /of /maintenance /should /be /managed /with /a /routine /maintenance /contract?
a. /Replacing /dead /shrubs b. /Painting /building /hallways c. /Cutting /the /grass d. /Cleaning /sewer /lines. /- /correct /answer(s) /✔✔ /c. /Cutting /the /grass Liability /claims /should /be /sent /to /the /insurer: a. /Requesting /a /public /adjuster /be /assigned. b. /Without /admitting /negligence. c. /By /the /Insurance /Trustee. d. /Within / 72 /hours /of /the /incident. /- /correct /answer(s) /✔✔ /b. /Without /admitting /negligence. A /component /of /building /ordinance /insurance /coverage /includes: a. /Glass /damage b. /Extra /demolition c. /Water /damage d. /Power /failure /- /correct /answer(s) /✔✔ /b. /Extra /demolition A /community /association /is /within /its /legal /rights /to /dismiss /an /employee /without /cause /or /progressive /discipline /for /which /of /the /following /reasons? a. /substance /abuse /on /the /job b. /inadequate /work /performance c. /insubordination d. /sexual /harassment /- /correct /answer(s) /✔✔ /a. /substance /abuse /on /the /job
Assessment /fee /receivable /insurance /has /a /certain /limited /value /to /an /association. /Such /insurance /will /assist /in /situations /such /as /a /fire /destroying /a /home /or /unit /and /the /association /is /unable /to /collect /assessments /from /the /owner. /It /does /not /provide /coverage /for /the /association /if /an /owner /refuses /or /fails /to /pay /assessments. The /board /exercises /its /fiduciary /responsibility /by: a. /Authorizing /the /manager /to /enforce /rules. b. /Establishing /internal /controls. c. /Authorizing /of /a /committee /to /adopt /due /process /procedures. d. /Voting /to /eliminate /parking /rules. /- /correct /answer(s) /✔✔ /b. /Establishing /internal /controls. Helps /avoid /theft. /Learning /Tested: /Ability /to /define /understanding /of /fiduciary. /. In /the /hierarchy /of /a /community /association's /governing /documents, /which /of /the /following /is /the /highest /authority? a. /Bylaws b. /Articles /of /Incorporation c. /Declaration d. /Mortgage /lender /requirements /- /correct /answer(s) /✔✔ /c. /Declaration Hierarchy:
- /Recorded /deed /or /map
- /Declaration /or /Master /Deed
- /Articles /of /Incorporation
- /Bylaws
- /Rules /and /Regulations TRUE /OR /FALSE: A /board /of /directors /can /legally /conduct /the /business /of /the /association /without /a /quorum. /- /correct /answer(s) /✔✔ /FALSE Management /conducts /its /tasks /for /the /day /to /day /operation /of /the /association /in /accordance /with /the: a. /Minutes b. /Contract c. /Board /President's /instructions d. /Resolutions /- /correct /answer(s) /✔✔ /b. /Contract
- /The /general /process /by /which /the /control /and /responsibilities /of /the /governing /board /of /an /association /are /transferred /from /the /developer /to /the /persons /who /bought /unit/lots /in /the /association /is /called.
- /The /date /upon /which /owners /gain /control /of /their /association. a. /audit b. /turnover c. /restoration
You /have /a /proprietary /lease /in /XYZ /development. /Which /of /the /following /best /describes /your /interest /in /the /property? a. /A /time-share /interest. b. /A /divided /interest. c. /An /undivided /interest. d. /Stock /membership /- /correct /answer(s) /✔✔ /d. /Stock /membership A /proprietary /lease /is /given /to /the /shareholder /only /in /a /Cooperative /Cooperation. /The /shareholder /receives /stock /membership. TRUE /OR /FALSE: The /role /of /a /professional /community /association /manager /is /to /make /all /decisions /for /the /association /and /to /delegate /information-gathering /and /fact-finding /support /to /the /board /of /directors. /- /correct /answer(s) /✔✔ /FALSE TRUE /OR /FALSE Assessment /Fee /Receivable /insurance /coverage /provides /coverage /for /the /association /if /an /owner /refuses /or /fails /to /pay /assessments. /- /correct /answer(s) /✔✔ /FALSE Community /association /employees /are /obligated /to /do /each /of /the /following /EXCEPT: a. /possess /the /skills /needed /to /perform /assigned /tasks. b. /use /reasonable /care /in /performing /assigned /tasks /in /order /to /protect /the /community's /assets /and /interest.
c. /complete /assignments /in /conformity /to /performance /standards /within /a /reasonable /time /frame. d. /participate /in /the /association's /health /program. /- /correct /answer(s) /✔✔ /d. /participate /in /the /association's /health /program. The /federal /government /prohibits /discrimination /against /otherwise /qualified /people /for /each /of /the /characteristics /EXCEPT: a. /religion b. /gender c. /skill d. /race /and /ethnicity /- /correct /answer(s) /✔✔ /c. /skill TRUE /OR /FALSE: If /a /community /association /has /just /one /part-time /employee, /it /doesn't /need /a /written /personnel /manual /or /employee /handbook. /- /correct /answer(s) /✔✔ /FALSE In /which /of /the /following /forms /of /community /association /management /is /the /association /management /by /the /board /itself /or /by /committees /under /the /direction /of /the /board? a. /management /company b. /volunteer /or /self-management c. /association-employed /manager d. /municipal /management /- /correct /answer(s) /✔✔ /b. /volunteer /or /self-management
