Free ACoM Practice Questions

Question 1

A shopping center's café has an exclusive right to operate a business primarily selling coffee. Its lease expressly exempts full-service restaurants serving coffee with meals. A qualified prospect proposes a sit-down restaurant with table service and coffee only with meals. No other use restrictions apply. How should the manager address the café's objection to the proposed lease?

Accepted Answer

Proceed under the restaurant exception, retaining the stated use limits in the new lease.

Answer

Require the café's written consent before negotiating with the restaurant.

Answer

Treat the proposed coffee service as a competing use prohibited by the café's exclusive right.

Answer

Allow unrestricted coffee sales now and later because the tenant's business is identified as a restaurant.

Question 2

An owner supplies these annual figures for a stabilized office building:
Effective gross income: $960,000
Operating expenses, including property taxes and insurance: $360,000
Mortgage principal and interest: $240,000
Roof replacement: $60,000
The four amounts are reported separately. What indicated value results from direct capitalization at 7.5%?

Accepted Answer

$8,000,000

Answer

$4,800,000

Answer

$7,200,000

Answer

$4,000,000

Question 3

A burst pipe is sending water across an electrical-room floor around energized switchgear. The water shutoff can be reached from a separate dry corridor. Which immediate response best controls both hazards?

Accepted Answer

Restrict access, arrange safe water shutoff, and summon qualified responders to isolate the electrical hazard.

Answer

Keep the room closed while obtaining written owner approval to bring in an emergency electrician.

Answer

Send a plumber to stop the leak, then have cleaners remove the water around the energized equipment.

Answer

Have maintenance enter in rubber boots and use the nearest electrical disconnect to shut off power.

Question 4

Painting is included in the owner's approved annual budget at $24,000. A $19,500 fixed-price bid meets the approved scope. The management agreement lets the manager sign nonemergency contracts up to $15,000; larger contracts require the owner's written authorization. The work is not urgent. Can the manager sign this contract without further approval?

Accepted Answer

No; the separate contract-approval limit applies even though the expense was included in the budget.

Answer

Yes; the approved budget line provides sufficient authority to contract for this painting work.

Answer

No; the owner must first approve a revised annual operating budget before considering the individual contract.

Answer

Yes; a deposit under $15,000 keeps the initial commitment within the manager's signing limit.

Question 5

'Our response times prove tenant service has improved,' says an office property's service supervisor. Acknowledgments now take a median of 8 minutes instead of 45 minutes. However, verified repair completion takes four days instead of one, and repeat complaints are increasing. What should the manager conclude?

Accepted Answer

Faster acknowledgment has not translated into timely, durable resolution of tenants' problems.

Answer

Staffing levels, rather than work quality, explain the increase in repeat complaints.

Answer

Faster initial contact establishes better service despite the longer time needed for repairs.

Answer

The rising complaints indicate higher tenant expectations rather than deterioration in maintenance performance.

Question 6

A shop occupies 10,000 rentable square feet in a 100,000-rentable-square-foot center that is 80% occupied. Its lease allocates common area maintenance (CAM) costs using total center rentable area, including vacant space. Management fees are recoverable; roof replacement is excluded, and gross-up is prohibited. The CAM ledger totals $360,000, including $60,000 for roof replacement and $40,000 in management fees. The tenant paid $34,000 in estimates. What belongs on its year-end reconciliation?

Accepted Answer

Credit of $4,000

Answer

Charge of $2,000

Answer

Credit of $8,000

Answer

Charge of $3,500

Question 7

Leasing tells a maintenance coordinator, 'Have the crew prepare the vacant suite today.' Engineering tells another coordinator, 'That crew is already committed to scheduled maintenance.' Both requests are legitimate, neither is an emergency, and these conflicts recur despite reminders to communicate. Which supervisory change would address the cause?

Accepted Answer

Use a shared priority schedule and designate who has authority to resolve conflicting requests.

Answer

Require the coordinators to obtain the property owner's approval whenever their assignments conflict.

Answer

Give leasing requests automatic priority because vacancy has the most immediate effect on revenue.

Answer

Rate each coordinator on completed work orders so the more productive approach eventually prevails.

Question 8

An industrial prospect fits a bay's space and loading requirements but proposes storage commodities and rack heights beyond the fire-protection system's documented design. Additional tenant liability insurance is offered as a workaround. Which leasing condition is necessary?

Accepted Answer

Require verified fire-protection compatibility before occupancy, including any necessary upgrades and approvals.

Answer

Proceed if the tenant obtains the proposed higher liability limits.

Answer

Shift compliance to the tenant through a standard triple-net expense clause.

Answer

Treat the existing occupancy approval as sufficient authorization for the proposed storage.

Question 9

Landscaping service was completed in December but invoiced in January and omitted from the year-end books. For an accrual-basis December operating statement, the manager should:

Accepted Answer

Accrue the cost of the completed December service as an expense and recognize the related payable.

Answer

Keep the December variance and expense the invoice when January's payment is issued to the contractor.

Answer

Recognize a prepaid landscaping asset in December and release it to expense when the invoice arrives.

Answer

Move the unspent December allowance into January and leave December's recorded expense unchanged in the report.

Question 10

An office building receives a valid ENERGY STAR score of 82. The owner's draft leasing brochure describes the property as 'ENERGY STAR certified, using 82% less energy than comparable buildings.' No certification has been awarded. Which replacement statement accurately describes the result?

Accepted Answer

Performance exceeds the national median for similar buildings and meets the score criterion for certification, which still requires approval.

Answer

The property uses 18% of the energy consumed by a typical comparable building, although certification still requires an application and review.

Answer

The qualifying score establishes that certification has been achieved; the remaining step is obtaining the certificate for use in leasing materials.

Answer

Performance exceeds the national median for similar buildings, but the score falls below the minimum required to apply for certification.

Free ACoM Practice Questions

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