Practice Test Geeks(CBB) Certified Business Brokers Practice Test
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Legal & Regulatory Compliance Flashcards

6 cards from real CBB practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 Legal & Regulatory Compliance flashcards as text

  1. What is the purpose of a non-disclosure agreement (NDA) in business brokerage?

    Answer: To protect business confidentiality

    An NDA protects confidential business information during negotiations with potential buyers.

  2. Which regulatory body typically oversees business brokerage licensing at the state level?

    Answer: State Real Estate Commission

    Real estate commissions or similar agencies regulate brokerage licenses in many U.S. states.

  3. What is a key component of a Letter of Intent (LOI)?

    Answer: Non-binding preliminary terms

    An LOI outlines the buyer's intention to purchase a business and includes preliminary terms of the deal.

  4. Which document ensures a broker is legally authorized to represent a seller?

    Answer: Listing agreement

    A listing agreement gives the broker legal authority to market and sell the business on behalf of the owner.

  5. Why is it important for brokers to disclose all material facts?

    Answer: To protect both parties legally

    Disclosure of all material facts is required by law and promotes fair dealing in the transaction process.

  6. What role does the Uniform Commercial Code (UCC) play in business sales?

    Answer: It governs secured transactions

    The UCC ensures proper filing and disclosure of secured interests in business assets during a sale.

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  1. cabb.org — Retake policy, fees, retake fee, time limit, test delivery, score validity, score release · verified Oct 2026