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Random CMCA Practice Test Questions
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 answersC. 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 answersC. 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 answersB. 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 answersB. 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 answersA. Negotiate contracts within the bidding process. If an owner fails to receive notice of a meeting, the association is not responsible if the owner: A. Did not notify association of their current address. B. Does not usually attend the meetings. C. Already signed the petition to call the meeting. D. Shares title with multiple owners. correct answersA. Did not notify association of their current address. It is the owner's responsibility to provide current contact information to Management.
c. ballot d. quorum correct answersb. 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 answersD. 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 answersC. 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 answersb. 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 answersd. Be the time keeper - In older condominiums, an association should have what type of contract covering mechanical equipment? a. Time and materials b. Specific repair c. Service d. Preventive maintenance correct answersd. Preventive maintenance - Preventive maintenance contracts are used for such items as pool and A/C equipment, boilers and water heaters where regular service is likely to reduce the chance of expensive emergency repairs. For which project would a board most likely want to use a consultant to help develop bid specifications? a. Landscape renovation project b. Repairing and/or replacing all roofs c. Painting the interior of lobbies and hallways d. Repairing HVAC and boilers correct answersb. Repairing and/or replacing all roofs - An outside consultant is most likely to be used in a large, complicated project, such as replacement of all roofs in a HOA. Which of the following has the greatest regulatory influence on the management of a community association? a. Federal statues b. Articles of Incorporation c. Specific state statues
d. mandatory committees correct answersd. 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 answersb. 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 answersd. 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 answersc. 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. What "duty" do the Board members and the manager have to the members?
a. Accountability b. Loyalty c. Service d. Conduct correct answersb. Loyalty - The Board Members and Manager have the Fiduciary "Duty" of Loyalty to the owners. TRUE OR FALSE: It's generally a good idea to schedule a performance evaluation meetings with an employee in a public place. correct answersFALSE Employment contracts need NOT include: a. Legal sources b. Interests c. Termination d. Notice correct answersb. Interests - Is not a relevant component of an employment contract. TRUE OR FALSE: A community association employee who supervises other staff members is automatically classified as salaried (or exempt). correct answersTRUE 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 answersb. Occupational Safety and Health Act
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 answersc. 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. d. Explain employee rights and responsibilities. correct answersd. Explain employee rights and responsibilities. Preparing a bid request includes which of the following? a. Verifying references. b. Identifying potential contractors. c. Recommending a contractor to the board. d. Verifying contractors insurance. correct answersb. Identifying potential contractors. Alternative dispute resolution includes which of the following methods? a. Mediation b. Subrogation
c. Litigation d. Indemnification correct answersa. Mediation MATCH THE COMMITTEE TYPES
- Usually include elections, nominations, and architectural standards. Required by the governing documents.
- Established by the Board to meet some on-going need of the community.
- Task forces that meet some specific need and are then dissolved. Established by the Board. a. Standing b. Mandatory c. Parent Organization d. Ad-hoc correct answers1. 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 answersc. Assigns maintenance tasks. Which of the following responsibilities relate to the governance function of a community association board of directors?
a. substance abuse on the job b. inadequate work performance c. insubordination d. sexual harassment correct answersa. substance abuse on the job Each of the following legal sources specify management authority and responsibilities for community associations EXCEPT: a. survey data b. state statues c. community association governing documents d. court decisions correct answersa. survey data Directors and officers liability insurance is designed to cover claims resulting from: a. Theft of funds by an association board member. b. Wrongful acts of employees of the association. c. Bodily injury of directors and officers. d. Damage to board owned property. correct answersb. Wrongful acts of employees of the association. They are only covered under the D&O if the definition of "insured party" includes such employees. Which of the following types of insurance coverage is one of limited value to a community association? a. Liability b. Assessment fee receivable c. Worker's compensation d. Commercial umbrella correct answersb. Assessment fee receivable
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 answersb. 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 answersc. Declaration Hierarchy:
- Recorded deed or map
- Declaration or Master Deed
- Articles of Incorporation
- Bylaws
b. Protect the financial health of the owners. c. Provide owners protection from municipal laws. d. Deal with governance and business. correct answersd. Deal with governance and business. When a dispute is mediated, an uninvolved third party facilitates discussion and: a. Makes the final judgement for both parties. b. Presents a decision which the parties are free to reject. c. Assist both parties in reaching a mutually acceptable agreement. d. Decision is binding upon both parties. correct answersc. Assist both parties in reaching a mutually acceptable agreement. Who has the ultimate responsibility for the care and maintenance of the common areas, facilities, and physical property? a. The Board of Directors b. The association manager c. The developer until turnover. d. The Executive Committee. correct answersa. The Board of Directors 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 answersd. 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 answersFALSE TRUE OR FALSE Assessment Fee Receivable insurance coverage provides coverage for the association if an owner refuses or fails to pay assessments. correct answersFALSE 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 answersd. 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 answersc. skill TRUE OR FALSE:
It is ethically acceptable for a professional community association manager to arrange for a kickback for giving a contractor an association contract. correct answersFALSE A _____________ includes reviewing the governing documents and existing policies and procedures, the current condition of the property, owner/resident satisfaction, and fiscal operations. a. management contract b. management plan c. management audit d. employment agreement correct answersc. management audit In addition to meeting agenda, board members should receive each of the following supporting materials prior to a meeting EXCEPT: a. Minutes from the last meeting b. Financial reports c. Community newsletter d. Committee reports correct answersc. Community newsletter TRUE OR FALSE: It is perfectly acceptable to hold a board meeting in the home of the association president. correct answersFALSE All board meetings must be held in a place where the homeowners/members may attend. Which of the following is not one of the basic principals of parliamentary procedure that apply to every meeting? a. Minority rule
b. Justice c. Courtesy d. Protection of Rights correct answersa. Minority rule Each of the following are benefits to using the resolution process to adopt rules EXCEPT: a. Provides an oral record of all rules made. b. Protects owners from arbitrary board actions. c. Protects the community from charges that could result in inoperable rules. d. Provides for consistency in making and wording rules. correct answersd. Provides for consistency in making and wording rules. TRUE OR FALSE It more owners are showing up at board meetings, this could be a warning sign of a weak management? correct answersTRUE MATCH
- The disciplines dealing with what is good and bad and with moral duty and obligation.
- Requires the party acting on behalf of another to exercise the skill and care that a reasonable person would exercise under similar circumstances.
- Applies to the delivery of products or services and to our relationships with customers, employers, vendors and colleagues.
- Requires the fiduciary to act in the other party's interested when administering its assets.
- A set of rules or standards that govern the conduct of members of a profession.
