WV BUSINESS LAW PRACTICE EXAM FOR CONTRACTORS – Flashcards
35 test answers
Unlock all answers in this set
Unlock answers 35question
5. Using the percentage method of withholding, what is the income tax deducted form an employees wages that earns $1,500 per pay period, is paid bi-weekly, is single and claims no deductions? a. $82.95 b. 165.90 c. $194.50 d. $214.50
answer
c. $194.50
Unlock the answer
question
6. What is the penalty for submitting an IRS payroll tax deposit in the amount of $5,000 that is 2 days late? a. $100 b. $250 c. $500 d. $750
answer
a. $100
Unlock the answer
question
The accounting method that recognizes income and expenses only when money is received or paid is called: a. the PCM Method b. the Accrual method c. the cash method d. the cost-comparison method
answer
c. the Cash method
Unlock the answer
question
Employers are required to notify employees of changes in policies affecting all the following EXCEPT: a. pay schedules b vacation allowance c. health benefits d. promotion opportunities
answer
d. promotion opportunities
Unlock the answer
question
What is the process for obtaining a contractor license if the existing license has lapsed? (Do not consider exceptions) a. Submit a renewal application with the renewal fee. b. Submit a renewal application, renewal fee and a $25 late fee. c. Submit a new license application using test scores from original license. d. Submit a new license application and retake licensing exams.
answer
d. Submit a new license application and retake licensing exams.
Unlock the answer
question
What does the term "replacement cost" mean relative to insurance coverage? a. The insurer will pay the policy holder an amount sufficient to cover the acquisition of the same tool at today's prices. b. The insurer will pay the policy holder an amount equial to the depreciated value of the tool. c. The insurer will pay the policy holder an amount sufficient to cover the acquisition of a newer model tool at today's prices. d. The insurer will pay the policy holder an amount equal to a negotiated rate for value of a generic tool.
answer
a. The insurer will pay the policy holder an amount sufficient to cover the acquisition of the same tool at today's prices.
Unlock the answer
question
All construction projects in West Virginia require a written contract when the total value of the contract EXCEEDS: a. $1,500 b. $2,500 c. $10,000 d. $25,000
answer
c. $10,000
Unlock the answer
question
When estimating the amount of time a task will take to complete, all the following elements should be considered EXCEPT: a. production time b. estimating time c. setup time d. contingency time
answer
b. estimating time
Unlock the answer
question
How long are employers required to maintain reportable accident or incident records? a. 4 years b. 5 years c. 6 years d. 7 years
answer
b. 5 years
Unlock the answer
question
Which of the following would be considered a current liability? a. Payroll b. Building lease c. Equipment loan d. Stock
answer
a. Payroll
Unlock the answer
question
A business pays its employees every two weeks. During the first week of the pay period, the employee works 30 hours. During the second week the employee works 50 hours. The employee is paid $10 per hour. What are the gross wages of the employee for the pay period? a. $800 b. $850 c. $1050 d. $1200
answer
b. $850
Unlock the answer
question
On a balance sheet, the term "current" means what? a. One week or less b. One month or less c. One year or less d. Two years or less
answer
c. One year or less
Unlock the answer
question
Which of the following contractor licenses are EXEMPT from wage bond requirements even if they have been providing services in West Virginia for less than five (5) years? a. Commercial Contractors b. Residential Contractors c. Electrical Contractors d. Plumbing Contractors
answer
b. Residential Contractors
Unlock the answer
question
When referring to contracts, what does the term "consideration" mean? a. Compensation b. Agreement c. Offer d. Pondering
answer
a. Compensation
Unlock the answer
question
All the following would be considered workplace injuries EXCEPT: a. when an employee is struck by falling debris at the jobsite before he clocks in for the day b. when an employee is struck by a car while in the company parking lot while walking to the jobsite c. when an employee cleaning the company parking lot is struck by a car d. when an employee suffers burns related to jobsite chemicals
answer
b. when an employee is struck by a car while in the company parking lot while walking to the jobsite
Unlock the answer
question
Which of the following bonds would be used to protect the owner from subcontractors, suppliers or laborers that were NOT compensated by the contractor? a. Bid bond b. Performance bond c. Payment bond d. Maintenance bond
answer
c. Payment bond
Unlock the answer
question
What is the name of the process whereby an estimate is created containing all the materials required for a project? a. Job analysis b. Takeoff c. WBS d. Cost log
answer
b. Takeoff
Unlock the answer
question
A price estimate for performing a job has been compiled and total costs of the project are $775,000. What will be the total bid of the company requires a 23% MARKUP on all costs of the project? a. $178,250 b. $630,081 c. $953,250 d. $1,006,494
answer
c. $953,250
Unlock the answer
question
Which worker is NOT entitled to receive overtime wages? a. Vice President b. Job foreman c. Laborer d. Temporary worker
answer
a. Vice President
Unlock the answer
question
A contractor is issued a contractor license on May 1. When will the contractor license expire? a. April 30 each year b. June 30 each year c. July 1 each year d. December 31 each year
answer
a. April 30 each year
Unlock the answer
question
What type of contract requires the builder to finance, initially own and operate the project, and then finally transfer the project to the customer after it has recovered its construction costs? a. Traditional b. Design Build c. Turn Key d. Concession
answer
d. Concession
Unlock the answer
question
How many hours can an employee work during a work week without being paid overtime wages? a. 32 b. 40 c. 48 d. 56
answer
b. 40
Unlock the answer
question
Which of the following statements is TRUE regarding a business general partnership? a. Partnerships are difficult to organize and complicated to maintain. b. All general partners are fully responsible for the business actions of the other general partners. c. All proceeds from the business are taxed first at the company level, then passed down to the individual partners. d. Partnerships required that all proceeds from the business be divided equally among partners.
answer
b. All general partners are fully responsible for the business actions of the other general partners.
Unlock the answer
question
Which of the following contract documents would be seen as having more priority in a contract dispute than the other documents? a. General conditions b. Technical specifications c. Addendum d. Change order
answer
d. Change order
Unlock the answer
question
If multiple liens are filed against the property owner on the same day, which lien holder has priority? a. The subcontractor that completed its work on March 31 b. The supplier that provided its building materials on April 15 c. The laborer that completed its work on April 22 d. The contractor that completed the project on May 1
answer
b. The supplier that provided its building materials on April 15
Unlock the answer
question
Which of the following statements is TRUE regarding a Limited Liability Company (LLC)? a. The owners are responsible for self-employment tax on all business proceeds earned form the business. b. The company is limited to maximum of 100 members (shareholders). c. All company members (shareholders) are required to be U.S. Citizens. d. All members are completely liable for debts and actions of the company.
answer
a. The owners are responsible for self-employment tax on all business proceeds earned form the business.
Unlock the answer
question
Where must liens be field in order to be properly recorded? a. Federal court b. State court c. County court d. City court
answer
c. County court
Unlock the answer
question
Which of the following best describes the tern "double-taxation"? a. The company pays taxes on its income, then distributes dividends to shareholders which are taxed at the personal level. b. The business owner pays federal taxes on a salary, then pays taxes on the remaining income for the business. c. A business pays Federal tax based on business income, and pays State tax based on business income. d. A corporation pays sales tax on property sold to owners, and pays income tax on business operations.
answer
a. The company pays taxes on its income, then distributes dividends to shareholders which are taxed at the personal level.
Unlock the answer
question
].......B------E-------------- ] ] ) A.--..D......G..........Closeout ] ] ------C-----F--------------- Which of the following is the critical path leading to closeout? a. A,B,E b. A,D,G c. A,C,F d. A,B,C,D,E,F,g
answer
a. A,B,E
Unlock the answer
question
].......B------E-------------- ] ] ) A.--..D......G..........Closeout ] ] ------C-----F--------------- If task D takes 2 more days to complete than originally schedule, how much will the entire project be delayed? a. 0 days b. 1 day c. 2 days d. 3 days
answer
a. 0 days
Unlock the answer
question
Task/Day 22 23 24 25 26 27 28 29 30 Task 1 x x x Task 2 x x Task 3 x x Task 4 x x x x x Task 5 x x Task 4 is dependent upon the completion of which task? a. 1 b. 2 c. 3 d. 5
answer
a. 1
Unlock the answer
