Random CMCA Practice Test Questions and Answers 2023

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Random CMCA Practice Test Questions and Answers 2023 Which of the following is a common management control for ensuring maintenance work is performed in a timely manner? A. A purchase order syst... em B. An equipment warranties C. A work order/response form D. A contractor's invoice Ans- 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 Ans- 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 Ans- 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 Ans- 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. Ans- A. 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. Ans- A. Did not notify association of their current address. It is the owner's responsibility to provide current contact information to Management. 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. Reserve Study Ans- A. Governing documents The best reasoning for recommending the modified accrual accounting method is that, compared to cash accounting, it: A. Will make future audit work more accurate. B. More accurately reflects the association's financial condition. C. Is more easily understood by board members. D. Can be accomplishment more quickly. Ans- B. More accurately reflects the association's financial condition. Under the modified accrual basis, also sometimes referred to as modified cash basis, some accounts, such as assessment income, are 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. Ans- 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 Ans- 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 Ans- 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. Ans- 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 Ans- 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 Ans- d. 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 Ans- d. 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 Ans- b. 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. General state statues Ans- c. Specific state statues - There may be specific state statues addressing regulations which effect the management of a community association. TRUE OR FALSE: Employees are finished with training after they receive their initial training for a job. Ans- 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 Ans- 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. AnsTRUE 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 Ans- 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 Ans- 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 Ans- 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. Ans- 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. What "duty" do the Board members and the manager have to the members? a. Accountability b. Loyalty c. Service d. Conduct Ans- b. 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. Ans- FALSE Employment contracts need NOT include: a. Legal sources b. Interests c. Termination d. Notice Ans- b. 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). Ans- TRUE 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 Ans- 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. Ans- 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 Ans- 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 Ans- 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 Ans- 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. Ans- 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. d. Explain employee rights and responsibilities. Ans- d. 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. Ans- b. Identifying potential contractors. Alternative dispute resolution includes which of the following methods? a. Mediation b. Subrogation c. Litigation d. Indemnification Ans- a. Mediation MATCH THE COMMITTEE TYPES 1. Usually include elections, nominations, and architectural standards. Required by the governing documents. 2. Established by the Board to meet some on-going need of the community. 3. 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 Ans- 1. b. Mandatory 2. a. Standing 3. 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. Ans- 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. Ansa. 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. Ans- 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. Ans- b. Without admitting negligence. A component of building ordinance insurance co [Show More]

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