NASCLA BUSINESS LAW AND MANAGEMENT
EXAM SCRIPT 2026 QUESTIONS WITH
ANSWERS
◉ D. Subcontractor. Answer: FOB freight prepaid requires _____ to
pay for shipping charges.
A. Contractor
B. Buyer
C. Seller
D. Subcontractor
◉ A. Foreman. Answer: _____ is NOT a member of the supervisory
team.
A. Foreman
B. Materials expediter
C. Owner's representative
D. Project manager
◉ A. Calendar. Answer: With _____ scheduling, you can link project
tasks to specific dates such as delivery dates, payment schedule and
employee vacations and holidays.
A. Calendar
,B. Bar chart
C. Gantt
D. Critical Path Method
◉ D. Pamphlets are not required. Answer: When working in a
dwelling that was built prior to 1978, the employer is to provide
each occupant with a pamphlet titled ______.
A. Protect your family from lead in your home
B. Protect your loved ones from lead in your home
C. Protect your family and your friends from lead in your home
D. Pamphlets are not required
◉ A. $2,500. Answer: Employers who violate child labor laws are
subject to a civil penalty of up to ____ per worker for each violation.
A. $2,500
B. $5,000
C. $10,000
D. $11,000
◉ B. Less than $50,000. Answer: A lump sum contract on a project
has a total contact price of $260,000. Retainage has been held back
at 10%. The contractor has received progress payments for 75% of
the project. The contractor submits a request for final payment for
an amount _____.
,A. More than $80,000
B. Less than $50,000
C. Between $50,001 and $60,000
D. Between $60,001 and $70,000
◉ A. The termination at death of the owner. Answer: ______ is not a
key characteristic of a sole proprietorship.
A. The termination at death of the owner
B. Business expenses and personal income are not separated
C. The net income is taxed as ordinary income
D. The owner/owners must bear all responsibility
◉ D. 1/7. Answer: _____ 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
◉ C. 10. Answer: An Emergency Action Plan is required to be in
writing for ____ employees or more.
A. 2
, B. 8
C. 10
D. 11
◉ D. Employee. Answer: The _____ is responsible for and pays into
FUTA.
A. Property owner
B. Building contractor
C. Employer
D. Employee
◉ D. Profit high and vandalism low. Answer: The purpose of just-in-
time deliveries is to keep _____.
A. Profit low and vandalism high
B. Profit low and vandalism low
C. Profit high and vandalism high
D. Profit high and vandalism low
◉ D. Make your company more money. Answer: Business ethics will
(is) NOT _____.
A. Safeguard your reputation
B. Help avoid litigation
EXAM SCRIPT 2026 QUESTIONS WITH
ANSWERS
◉ D. Subcontractor. Answer: FOB freight prepaid requires _____ to
pay for shipping charges.
A. Contractor
B. Buyer
C. Seller
D. Subcontractor
◉ A. Foreman. Answer: _____ is NOT a member of the supervisory
team.
A. Foreman
B. Materials expediter
C. Owner's representative
D. Project manager
◉ A. Calendar. Answer: With _____ scheduling, you can link project
tasks to specific dates such as delivery dates, payment schedule and
employee vacations and holidays.
A. Calendar
,B. Bar chart
C. Gantt
D. Critical Path Method
◉ D. Pamphlets are not required. Answer: When working in a
dwelling that was built prior to 1978, the employer is to provide
each occupant with a pamphlet titled ______.
A. Protect your family from lead in your home
B. Protect your loved ones from lead in your home
C. Protect your family and your friends from lead in your home
D. Pamphlets are not required
◉ A. $2,500. Answer: Employers who violate child labor laws are
subject to a civil penalty of up to ____ per worker for each violation.
A. $2,500
B. $5,000
C. $10,000
D. $11,000
◉ B. Less than $50,000. Answer: A lump sum contract on a project
has a total contact price of $260,000. Retainage has been held back
at 10%. The contractor has received progress payments for 75% of
the project. The contractor submits a request for final payment for
an amount _____.
,A. More than $80,000
B. Less than $50,000
C. Between $50,001 and $60,000
D. Between $60,001 and $70,000
◉ A. The termination at death of the owner. Answer: ______ is not a
key characteristic of a sole proprietorship.
A. The termination at death of the owner
B. Business expenses and personal income are not separated
C. The net income is taxed as ordinary income
D. The owner/owners must bear all responsibility
◉ D. 1/7. Answer: _____ 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
◉ C. 10. Answer: An Emergency Action Plan is required to be in
writing for ____ employees or more.
A. 2
, B. 8
C. 10
D. 11
◉ D. Employee. Answer: The _____ is responsible for and pays into
FUTA.
A. Property owner
B. Building contractor
C. Employer
D. Employee
◉ D. Profit high and vandalism low. Answer: The purpose of just-in-
time deliveries is to keep _____.
A. Profit low and vandalism high
B. Profit low and vandalism low
C. Profit high and vandalism high
D. Profit high and vandalism low
◉ D. Make your company more money. Answer: Business ethics will
(is) NOT _____.
A. Safeguard your reputation
B. Help avoid litigation
