Arkansas Real Estate Practice Exam

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Get ready to ace your Arkansas Real Estate Exam. Use our engaging quizzes with flashcards and multiple choice questions to enhance your study experience. Prepare effectively by testing your knowledge and understanding of Arkansas real estate laws and practices!

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!

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Who is responsible for the trust funds received by a firm?

The individual licensee who received the funds
The firm’s accountant
The principal broker
The escrow agent selected by the parties

The correct answer is: The principal broker

The principal broker is responsible for the trust funds received by a firm. This is because the principal broker is the person who manages the brokerage and is responsible for all financial transactions and accounts. This includes ensuring that all trust funds are properly received and managed. Option A is incorrect because individual licensees are not responsible for managing trust funds for the entire firm. Option B is incorrect because while the firm's accountant may assist with financial matters, they are not directly responsible for trust funds. Option D is incorrect because the escrow agent is only responsible for specific transactions and not for all trust funds received by the firm. Therefore, only the principal broker has the overall responsibility for managing the firm's trust funds.