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The designated broker for an incorporated real estate firm must own at least 10% of the corporate stock.

a) True
b) False
c) Only if the firm has more than 50 agents
d) Depends on the state regulations

1 Answer

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Final answer:

The requirement for a designated broker to own a specific percentage of corporate stock in a real estate firm varies by state regulations; it is not a universal mandate in corporate ownership principles.

Step-by-step explanation:

The statement that the designated broker for an incorporated real estate firm must own at least 10% of the corporate stock can be true or false depending on state regulations. Ownership in a corporation is represented by shares of stock, and while distribution of ownership across shareholders varies, a single individual rarely holds a majority.

State laws and corporate bylaws would dictate the specific requirements for roles within a real estate brokerage firm, including any ownership percentage for a designated broker. It is not universally mandated by corporate ownership principles, but could be a stipulation decided by the state in which the firm operates.

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