CBB Client Relations & Ethics

Question 1

What is a key principle in maintaining ethical client relations as a business broker?

Accepted Answer

Being honest and transparent with clients

Answer

Aggressively closing the sale

Answer

Promising unrealistic returns

Answer

Using vague language

Question 2

Which action is essential for building a long-term relationship with clients?

Accepted Answer

Maintaining consistent communication

Answer

Waiting for clients to follow up

Answer

Avoiding difficult conversations

Answer

Focusing only on closing the deal

Question 3

What is the broker’s duty when a potential conflict of interest arises?

Accepted Answer

Disclose the conflict to all parties

Answer

Ignore the issue

Answer

Inform only the buyer

Answer

Delay the transaction

Question 4

What is the ethical approach to representing both buyer and seller in a transaction?

Accepted Answer

Disclose dual agency and obtain consent

Answer

Keep intentions confidential from both parties

Answer

Favor the party offering the higher commission

Answer

Switch representation halfway through

Question 5

Which behavior best reflects a broker's fiduciary responsibility?

Accepted Answer

Putting the client’s interest first

Answer

Maximizing personal commission

Answer

Sharing client details with competitors

Answer

Delegating without disclosure

Question 6

What should a broker do if a client asks them to hide negative financials?

Accepted Answer

Comply with full disclosure laws

Answer

Agree to secure the deal

Answer

Ignore the request and do nothing

Answer

Transfer responsibility to the accountant