question

1. Which of the following bonds guarantees that the contractor has paid the subcontractor? A. Bid bond B. Performance bond C. Payment bond D. James bond

answer

Payment Bond

question

2. The _____________ method recognizes income when the employer has done the work, yet has not received the income. A. Accrual B. Appreciation C. Deprecation D. Cash

answer

Cash

question

3. A ___________________ bundles all cost factors for entire task. A. Lump sum B. Cost plus C. Percent completion method D. Unit price method

answer

Unit Price Method

question

4. _______________ requires paying prevailing wages in federally-financed projects. A. Service Contract Act B. Walsh-Healey Act C. Wage Garnishment Law D. Davis-Bacon Act

answer

Service Contract Act

question

5. ________________ absolves the indemnified party from any payment for losses and damages incurred by a third party. A. Indemnification B. Delays and extensions of time C. Schedule acceleration D. Force majeure

answer

Schedule acceleration

question

6. The EAP should include ______________. A. Student's name B. Employer's name C. Administrator's name D. Next of kin

answer

Employer's Name

question

7. The MSDS provides for two main purposes: one purpose is product information, the other purpose is _______________ information. A. Substance B. Chemical C. Sequence of activities D. Emergency contact

answer

Emergency Contract

question

8. Having adequate technology strengths can help an organization with all except the following? A. Estimating B. Purchasing C. Scheduling D. Vacationing

answer

Estimating

question

9. Which of the following is an exclusion to an advantage of a sole proprietor? A. Limited personal responsibility B. Low start up costs C. Ownership of profits D. Decision making freedom

answer

Ownership of profits

question

10. _________________ determine the type of materials or methods used. A. Specifications B. Building codes C. References D. UL

answer

Specifications

question

11. Which of the following pays a worker when he, she, is laid off? A. Worker's compensation B. Unemployment C. COBRA D. HIPAA

answer

Unemployment

question

12. Of the following, which is unimportant when naming a business? A. Impression of firm B. Trademark C. Service D. Location

answer

Location

question

13. Technical specifications generally meet the classifications set aside by? A. AIA B. EIE C. EEE D. CSI

answer

CSI

question

14. Which of the following establishes an employee's identity to legally work in the United States? A. U.S. Passport B. Social Security card C. Certificate of Naturalization D. Driver's License

answer

U.S. Passport

question

15. If you are honest with a customer, _______________ becomes realistic. A. Disappointment B. Expectations C. Unrealistic goals D. Frustration

answer

Expectations

question

16. Who pays into workers' compensation? A. Property owner B. Building contractor C. Employer D. Employee

answer

Employer

question

17. Within how many days must a notice of commencement be filed? A. 15 days B. 14 days C. 21 days D. 30 days

answer

15 days

question

18. A contractor puts in a claim under a comprehensive standard general liability policy. The policy has no additional coverage, riders, or floaters, and has a $600 deductible per occurrence. The claim is for a job-site accident that caused $3,000 of injuries to employees, $2,800 of injuries to a pedestrian, $3,300 damage to the contractor's equipment, and $2,750 loss of project materials purchased by the contractor. The insurance company is liable for? A. $2,200 B. $0 C. $1,000 D. $3,200

answer

$2,200

question

19. Worker's compensation is paid for by the_____________. A. Homeowner B. Employee C. Employer D. Government

answer

Employer

question

20. To determine how much to withhold in taxes from an employee, the employer is to use the employee's _______________. A. W-2 B. W-3 C. W-4 D. W-5

answer

W-4

question

21. If an employee earns $10.00 per hour for a 50-hour week, how much is the over-time premium? A. $50 B. $150 C. $500 D. $550

answer

E

question

22. An entrepreneur is a _________________. A. Person B. Place C. Thing D. Tax base

answer

Person

question

23. All businesses must file an annual income tax return except______________? A. Corporation B. Partnership C. Sole proprietor D. LLC

answer

Partnership

question

24. An individual's Social security is taxed at ______________. A. 6.2% B. 1.45% C. 7.65% D. 15.3%

answer

6.2%

question

25. A __________________ is based on a calculation based of footage multiplied by a unit cost. A. Square-foot method B. Cost plus method C. Unit price method D. Unit price method

answer

Square-foot method

question

26. Generally, which of the following is not a business tax? A. Income tax B. Self-employment tax C. Employment tax D. Property tax

answer

Property Tax

question

27. All but which of the following is a guideline for a job description? A. SKAs B. Certificates C. Responsibility D. Insurances

answer

Insurances

question

28. The management team for a Limited Partnership consists of______________? A. General partners B. Board of Directors C. Owner D. Manager

answer

General Partners

question

29. The penalty for late tax deposits between 1-5 days is__________? A. 2% B. 100% C. 5% D. 10%

answer

2%

question

30. __________________ is the type of insurance one would purchase for tools. A. GLC B. Builders risk C. D and O D. Equipment theft

answer

Equipment theft

question

32. A(n) _________________ is issued prior to the execution of a contract. A. Addendum B. Change order C. Modification D. Insurance policy

answer

Addendum

question

33. ________________ is anything of value. A. A signature B. Consideration C. A date D. A counter offer

answer

Consideration

question

34. The maximum amount of shareholders permitted within a C corporation is____________? A. 25 B. 55 C. 75 D. Unlimited

answer

Unlimited

question

35. Employees are not motivated from _____________. A. Achievement B. Feedback C. Recognition D. Yelling

answer

Yelling

question

36. A surety bond is typically a _____________ party bond. A. One B. Two C. Three D. Four

answer

Three

question

37. When conflict exists between plans and specifications, one must follow _____________. A. Specifications B. Building codes C. UL D. The stricter of the specs or codes

answer

The stricter of the specs or codes

question

38. _______________ is a provision written into a contract that is used to limit risk in case of labor strikes. A. Indemnification B. Delays and extensions of time C. Schedule acceleration D. Force majeure

answer

Force Majeure

question

39. For federal taxes, a sole proprietor is to use self-employment tax form ____________. A. 1040 & schedule SE B. 1040 & schedule C C. 1040-ES D. 940 - EZ

answer

1040 & Schedule SE

question

40. An independent contractor is usually paid by ________________. A. Hourly B. Weekly C. Biweekly D. Flat fee

answer

Flat Fee

question

41. What is the return on total assets if there is a net profit (after taxes) or $16,000 and total assets of $48,000? A. 1/3 B. 3/1 C. 1/1 D. 3/3

answer

1/3

question

42. Which of the following programs applies to high injury sites? A. Programmed inspections B. Unprogrammed inspections C. Automatic inspections D. Involuntary inspections

answer

Programmed Inspections

question

43. A sole proprietor is taxed on________________. A. Ordinary income B. Pass through wages C. Cost plus fee D. Gross revenues

answer

Ordinary Income

question

44. What is the quick ratio (or acid test ratio) for a company that has current assets of $28,000, inventory of $4,000, and current liabilities of $6,000? A. 4/1 B. 1/4 C. 7/1 D. 1/7

answer

4/1

question

45. Units of measure include all but which of the following? A. Linear B. Square C. Cube D. Round

answer

Round

question

46. A major purpose of tracking costs is because _______________ can indicate a possible problem. A. Overruns B. Under runs C. Profit D. Cutting corners

answer

Overruns

question

47. Which of the following is not a purpose of marketing? A. Bring in new customers B. Retain existing customers C. Cash flow D. Open a checking account

answer

Open a checking account

question

48. A job commences on Wednesday, January 3rd. It is scheduled to be completed on January 19th of the same year. Including weekends, the job was completed on January 15th. How many days of float are there? A. 4 B. 5 C. 6 D. 7

answer

4

question

49. To help with cash flow, one should use ________________. A. A contract B. Progress payment C. Lawyer D. Accountant

answer

Progress Payment

question

50. Depreciation is considered a _____________ expense. A. Non cash B. Cash C. Value D. Unnecessary

answer

Non cash

1 Exam Prep NASCLA Contractor’s Guide to Business, Law, and Project Management, Florida 1st Edition Practice Test 2 – Flashcards

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