Question

Ace Realty has branch offices in several metro area locations. Which of these statements accurately describes the way those branch offices must be managed?

A. A branch manager is solely responsible for supervision of licensees affiliated with that particular branch office.
B. Each branch office must have a licensee designated as the branch manager, but the firm's broker has ultimate responsibility for supervision of affiliated licensees.
C. The firm's broker may choose to either retain full responsibility for managing branch offices or to appoint a managing broker.
D. The firm's broker may designate another broker who has at least three years of experience as a branch manager.

Answer 1

The correct statement is that each branch office of Ace Realty requires a designated branch manager, but the firm's broker retains ultimate responsibility for the supervision of licensees affiliated with the branches.

Step-by-step explanation:

The question is about the management structure of branch offices within a real estate firm. Specifically, it's about the responsibilities and the supervision requirements for licensees affiliated with those offices. The accurate statement regarding this management would be:

B. Each branch office must have a licensee designated as the branch manager, but the firm's broker has ultimate responsibility for supervision of affiliated licensees. This is because, while a branch may have its own manager to handle day-to-day operations, the broker of the firm retains the oversight role, ensuring compliance with laws, regulations, and firm policies.

Therefore, the firm's broker may appoint a managing broker or choose to manage the branch offices directly.