Consider why a brokerage experiences financial difficulty even in prosperous times. One of the main reasons financial difficulty for a brokerage occurs is that the broker fails to stay abreast of the economic climate and direction of the real estate market. With regard to financial planning for a real estate brokerage, which of the following statements is (are) TRUE?Statement #1: Even in prosperous times, the economic climate changes daily. Brokerages need to plan expenditures based on factual assessment of the economic climate.Statement #2: The competitors may reduce commission levels, and thus to compete, a brokerage may need to reduce commission levels within the firm.Statement #3: Advertising is vital to the success of a brokerage. A broker should take advantage of all products designed to promote real estate sales.

All states in the United States require real estate brokers to take an exam to get licensed.  Such subjects as operation of a brokerage, contract law and agency concepts and others.