106k views
0 votes
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

5 votes

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.

User Leahn Novash
by
8.5k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.