NASCLA BUSINESS LAW AND MANAGEMENT
PRACTICE PAPER 2026 COMPLETE SOLUTIONS
◉ C. Director's and Officer's Liability. Answer: ______ insurance will
protect an organization's officer.
A. Key Man Life
B. Commercial General Liability
C. Director's and Officer's Liability
D. Professional Liability Insurance
◉ A. 10. Answer: _______ percent of an Underground Storage Tank
must be underground.
A. 10
B. 15
C. 20
D. 5
◉ C. Performance. Answer: A _____ bond guarantees that the
contractor will complete the project within its time frame.
A. Bid
B. Payment
C. Performance
,D. Completion
◉ A. Emergency contact. Answer: The SDS provides two main
purposes; one purpose is product information; the other purpose is
_____ information.
A. Emergency contact
B. Sequence of activities
C. Chemical
D. Substance
◉ A. Laid off. Answer: Unemployment insurance is for employees
who have been _____.
A. Laid off
B. Fired
C. On a paid vacation
D. Injured at the construction site
◉ B. 30. Answer: Within ____ days of the building permit issuance,
the general contractor can file a notice of contract with the office of
the clerk of superior court.
A. 15
B. 30
C. 60
,D. 90
◉ C. A counter-offer. Answer: ______ is NOT one of the key elements of
a contract.
A. An offer
B. The acceptance
C. A counter-offer
D. Consideration
◉ C. All owners have personal liability. Answer: ______ is NOT an
advantage of a partnership
A. Ease of formation
B. Direct profit rewards
C. All owners have personal liability
D. Larger management base than that of a sole proprietorship
◉ A. General journal. Answer: Depreciation of equipment would be
entered in the _____ first.
A. General journal
B. General ledger
C. Disbursements journal
D. Job cost record
, ◉ D. Direct costs. Answer: Fixed assets include all of the following
except for _____.
A. Land
B. Buildings
C. Equipment
D. Direct costs
◉ A. Accrual. Answer: The _____ method recognizes income when the
employer has done the work but not received the money.
A. Accrual
B. Appreciation
C. Depreciation
D. Cash
◉ D. Unit price method. Answer: A ______ bundles all cost factors for
the entire task.
A. Lump sum
B. Cost plus
C. Percent completion method
D. Unit price method
PRACTICE PAPER 2026 COMPLETE SOLUTIONS
◉ C. Director's and Officer's Liability. Answer: ______ insurance will
protect an organization's officer.
A. Key Man Life
B. Commercial General Liability
C. Director's and Officer's Liability
D. Professional Liability Insurance
◉ A. 10. Answer: _______ percent of an Underground Storage Tank
must be underground.
A. 10
B. 15
C. 20
D. 5
◉ C. Performance. Answer: A _____ bond guarantees that the
contractor will complete the project within its time frame.
A. Bid
B. Payment
C. Performance
,D. Completion
◉ A. Emergency contact. Answer: The SDS provides two main
purposes; one purpose is product information; the other purpose is
_____ information.
A. Emergency contact
B. Sequence of activities
C. Chemical
D. Substance
◉ A. Laid off. Answer: Unemployment insurance is for employees
who have been _____.
A. Laid off
B. Fired
C. On a paid vacation
D. Injured at the construction site
◉ B. 30. Answer: Within ____ days of the building permit issuance,
the general contractor can file a notice of contract with the office of
the clerk of superior court.
A. 15
B. 30
C. 60
,D. 90
◉ C. A counter-offer. Answer: ______ is NOT one of the key elements of
a contract.
A. An offer
B. The acceptance
C. A counter-offer
D. Consideration
◉ C. All owners have personal liability. Answer: ______ is NOT an
advantage of a partnership
A. Ease of formation
B. Direct profit rewards
C. All owners have personal liability
D. Larger management base than that of a sole proprietorship
◉ A. General journal. Answer: Depreciation of equipment would be
entered in the _____ first.
A. General journal
B. General ledger
C. Disbursements journal
D. Job cost record
, ◉ D. Direct costs. Answer: Fixed assets include all of the following
except for _____.
A. Land
B. Buildings
C. Equipment
D. Direct costs
◉ A. Accrual. Answer: The _____ method recognizes income when the
employer has done the work but not received the money.
A. Accrual
B. Appreciation
C. Depreciation
D. Cash
◉ D. Unit price method. Answer: A ______ bundles all cost factors for
the entire task.
A. Lump sum
B. Cost plus
C. Percent completion method
D. Unit price method
