CMI CMI Business Operations & Marketing

Question 1

Which business structure provides the greatest personal liability protection for a solo home inspector?

Accepted Answer

Limited Liability Company (LLC)

Answer

Sole proprietorship

Answer

General partnership

Answer

DBA registration

Question 2

What is the primary purpose of Errors & Omissions (E&O) insurance for a home inspector?

Accepted Answer

Covers claims of negligent inspection work or missed defects

Answer

Covers injuries on the job site

Answer

Replaces general liability insurance

Answer

Covers vehicle damage during inspections

Question 3

A CMI wants to expand their market by targeting real estate agents. Which approach is most effective for building referral relationships?

Accepted Answer

Attending agent meetings and providing continuing education presentations

Answer

Sending mass email campaigns

Answer

Offering the lowest price in the market

Answer

Advertising only on social media

Question 4

What should a CMI's service agreement (pre-inspection contract) always include?

Accepted Answer

Scope of inspection, limitations, and liability cap

Answer

A guaranteed list of all defects

Answer

A promise to re-inspect for free

Answer

The agent's commission details

Question 5

Which metric is most useful for tracking the long-term health of a home inspection business?

Accepted Answer

Client referral rate and repeat booking percentage

Answer

Number of inspections completed last week

Answer

Total number of defects reported

Answer

Average inspection duration

Question 6

When setting inspection fees, which factor is LEAST relevant to pricing strategy?

Accepted Answer

The color of the home's exterior

Answer

Local market rates

Answer

Inspector's years of experience

Answer

Square footage and age of the property