Which factor is NOT relevant in determining the worthiness of an AfBA entity?

Prepare for the Alabama Title Insurance Test. Practice with flashcards and multiple-choice questions, each question has hints and explanations. Get ready for your exam!

In the context of assessing the worthiness of an Affiliated Business Arrangement (AfBA) entity, ownership by a single entity is not a relevant factor. The evaluation of an AfBA's worthiness typically focuses on operational aspects such as the ongoing revenue streams, which indicate financial stability and performance. Substantial services provided refer to the quality and extent of the services that the AfBA can offer, which can demonstrate the entity's capability and reliability in serving its clients.

The volume of services contracted out is also tied to the AfBA's operational efficiency and market engagement, revealing how well the entity can meet demand while managing its resources.

Ownership by a single entity, while it might have implications for governance and control, does not inherently reflect the financial strength, service quality, or operational capability of the AfBA. Therefore, it lacks relevance when determining an AfBA's worthiness.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy