Which of the following is a potential penalty for a broker if they had prior knowledge of false representations?

When a broker has prior knowledge of false representations, it signifies a serious breach of trust and ethical conduct within the real estate and cemetery management sectors. The potential penalty of revocation of a license serves as a significant deterrent against misconduct, emphasizing the importance of maintaining integrity in all transactions.

Revocation is a severe consequence that reflects the gravity of the violation, as it removes a broker's ability to operate legally within their profession. It underscores the regulatory framework aimed at protecting consumers and ensuring that brokers uphold ethical standards. This action signals to both the broker and the wider community that engaging in deceitful practices will not be tolerated and can lead to severe professional repercussions.

In contrast, the other options either suggest lesser penalties or imply that no action will be taken, which would undermine the accountability expected from licensed professionals. Hence, the revocation of a license aligns with the need for strict enforcement of ethical behavior within the industry.