Which of the Following Is a Prohibited Practice as Defined

question 8

Multiple Choice

Which of the following is a prohibited practice as defined by RESPA requirements?

• A) A listing broker splits the real estate commission with a selling broker
• B) A lender refuses to accept an insurance company for coverage even though requested by the borrower
• C) A seller requires the use of a specific title company as a condition of the sale
• D) A selling broker provides the buyer/borrower with assistance in obtaining a loan in return for a fee

---

Definitions:

Common Equity

The amount of ownership in a corporation that is held by common shareholders, represented by common stock and retained earnings.

Stock Outstanding

The total shares of a corporation that are currently owned by all shareholders, including share blocks held by institutional investors and restricted shares.

Investor-provided Operating Capital

Funds provided by investors used for daily business operations and long-term growth initiatives.

Net Fixed Assets

Refers to the value of a company's property, plant, and equipment minus depreciation, indicating the tangible assets' net book value used in operations.