Humber/Ontario Real Estate Course 1 Exam Practice

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Humber/Ontario Real Estate Course 1 Exam with our comprehensive quiz. Test your understanding with multiple choice questions and detailed explanations. Build confidence and knowledge for a successful exam experience!

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!

Practice this question and more.

What should a salesperson avoid doing when transitioning to a commission-based career?

Factoring in seasonal income variations.
Establishing an emergency fund for startup costs.
Borrowing against future commission earnings.
Keeping personal and professional budgets.
Managing realistic financial expectations.
Investing in client acquisition strategies.

The correct answer is: Borrowing against future commission earnings.

When transitioning to a commission-based career, particularly in real estate, it is crucial for a salesperson to navigate their financial practices wisely. Borrowing against future commission earnings can lead to significant financial stress and instability. This approach creates a reliance on income that has not yet been earned, which can be risky if sales do not materialize as anticipated. Such a practice can put an individual in a precarious financial situation, especially in a fluctuating market where commissions and sales can vary dramatically. Maintaining financial stability in a commission-based role is best supported by proactive financial planning, such as understanding seasonal income variations, establishing an emergency fund, and managing realistic budgets. These strategies help ensure that individuals can weather the ups and downs of commission-based income without resorting to potentially harmful borrowing practices.