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A salesperson is drafting an offer for a vacant industrial site prime for development on behalf of their buyer client. The salesperson has included all proper conditions to protect the buyer, along with sufficient time periods to undertake the due diligence. Which of the following would be an appropriate conditional time period based on the corresponding condition?

• A. A conditional time period for verifying the soil condition or type that is five days in length.
• B. A conditional time period for verifying the existence of services such as sewage, water, and electricity that is 30 days in length.
• C. A conditional time period for a property inspection that is 30 business days in length.
• D. A conditional time period for obtaining an approval for a zoning change that is seven business days in length.

In regard to cash flow into and out of a business, which of the following is correct?

• A. Sales proceeds cash flow is used when determining yield on an investment property, while operating cash flow is not used for this purpose.
• B. Operating cash flow is used when determining yield on an investment property, while sales proceeds cash flow is not used for this purpose.
• C. Sales proceeds cash flow does not affect investor decisions.
• D. Operating cash flow can be positive or negative.

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

A buyer is interested in constructing a retail building and wants to use the most efficient method to save time and money. Which statement is true with regard to tilt-up wall panels and pre-cast panels?

• A. Both tilt-up panels and pre-cast panels can lower construction costs.
• B. Both tilt-up panels and pre-cast panels are formed off-site.
• C. Pre-cast panels are more durable than tilt-up panels.
• D. Pre-cast panels cost much more than tilt-up panels.

A salesperson is preparing to list an industrial building and wants to assess the availability and size of utilities, as these factors may prohibit a change in use for the potential buyer. Which of the following is correct?

• A. If the information on the subject building's utilities is available, then a potential buyer will not put a condition in the offer.
• B. The salesperson should conduct a visual inspection of the building to determine the specifications of the utilities.
• C. The seller may have up-to-date documentation about the utilities but, in some situations, a third-party professional assessment is still needed.
• D. If the information on the building's utilities is not available, the salesperson can determine it by finding out the specifications of the utilities of the neighbors.