Which statement about the Appraisal Practices Board (APB) is true?

The Appraisal Practices Board (APB) being classified as a private entity is accurate due to its structure and operation. The APB was established by the Appraisal Foundation, which itself is a nonprofit organization. Although it develops guidance for the appraisal profession, the APB does not have the authority to enforce compliance with the Uniform Standards of Professional Appraisal Practice (USPAP). Its role is to issue recommendations and best practices, not to act as a regulatory body. Thus, understanding the nature of the APB as a private entity helps clarify its functions and limitations within the broader framework of appraisal standards.