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

Acting with honesty and transparency builds trust and maintains professional integrity.

Question 2

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

Accepted Answer

Maintaining consistent communication

Answer

Regular and clear communication fosters trust and professionalism throughout the process.

Question 3

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

Accepted Answer

Disclose the conflict to all parties

Answer

Brokers must disclose any conflicts of interest to ensure transparency and fairness in 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

Dual agency must be disclosed and agreed to by both parties to avoid a breach of fiduciary duty.

Question 5

Which behavior best reflects a broker's fiduciary responsibility?

Accepted Answer

Putting the client’s interest first

Answer

Acting in the best interest of the client is the core of fiduciary duty.

(CBB) Certified Business Brokers Practice Test