Question

16) Real estate licensees and firms can create entities. Which of the following is INCORRECT regarding real estate entities in North Carolina?

A) Every entity, other than a sole proprietorship must have a firm license
B) Firm licenses must be renewed annually no later than June 30th
C) A licensed broker working for a firm cannot create their own legal entity
D) Partnerships create the most liability for the general partners involved

Answer 1

In North Carolina, licensed brokers working for a firm are allowed to create their own legal entity.

Step-by-step explanation:

The correct answer is C) A licensed broker working for a firm cannot create their own legal entity.

In North Carolina, every entity other than a sole proprietorship must have a firm license, so Option A is correct. Firm licenses must be renewed annually no later than June 30th, so Option B is correct. However, licensed brokers working for a firm are allowed to create their own legal entity, so Option C is incorrect. Partnerships do create the most liability for the general partners involved, so Option D is correct.