California Real Estate Practice Exam

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Prepare for the California Real Estate Exam. Study with flashcards and multiple-choice questions, each question includes hints and explanations. Get ready to ace your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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Two businessmen, an insurance broker and a real estate broker, wish to form a partnership. Which of the following statements is correct?

Mr. E would be required to secure a real estate broker's license
Only Mr. E could sell insurance
Their partnership would be permissible, as the law allows brokers to form partnerships
They would be required to secure a partnership license and file their name with the Secretary of State

The correct answer is: Mr. E would be required to secure a real estate broker's license

In this scenario, the correct answer is A because when two businessmen from different professions - in this case, an insurance broker and a real estate broker - form a partnership, each partner must only engage in activities related to their licensed profession. Since Mr. E is the real estate broker, he would need to secure a real estate broker's license to conduct real estate transactions within the partnership. It is crucial for each partner to comply with the licensing requirements of their respective professions to ensure legal and ethical business practices. Options B, C, and D are incorrect because only Option A accurately addresses the licensing requirement specific to Mr. E's role as a real estate broker in the partnership.