Minnesota State Real Estate Practice Test

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Study for the Minnesota Real Estate Exam. Use flashcards and multiple-choice questions with hints and explanations. Get exam-ready efficiently!

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What must a broker do before applying for a business entity license in Minnesota?

Join an active real estate company
Obtain a salesperson's license
Complete continuing education requirements
Pass the broker exam

The correct answer is: Join an active real estate company

A broker must pass the broker exam before applying for a business entity license in Minnesota. This step is essential because obtaining a broker's license demonstrates that the individual has achieved the necessary knowledge and competency in real estate principles, practices, and laws relevant to brokering real estate transactions. The requirement to pass the broker exam ensures that only qualified individuals can operate as brokers and manage real estate businesses. By demonstrating a comprehensive understanding of the real estate industry, including ethical responsibilities and applicable state laws, a broker is better equipped to lead a business entity in this sector effectively. The other options do not reflect the prerequisites for applying for a business entity license. Joining an active real estate company or obtaining a salesperson's license may be steps in a career pathway, but they do not meet the direct requirement of becoming a broker. Similarly, while completing continuing education requirements is important for license renewal and staying current in the field, it is not a prerequisite for applying for a business entity license.