Florida Business and Finance Exam:
Contractors Manual With Questions
And Correct Answers| Graded A+
What does RFP stand for? (Page 1-7) -ANSWER Request for Proposal
What are the advantages of a sole proprietorship? (Page 1-8) -ANSWER - It is easy to
create
- There is total control by the owner
- Ownership is freely transferable
- The owner can sell, alter or exchange all or part of the business.
What are the disadvantages of a sole proprietorship? (Page 1-9) -ANSWER - The owner
has unlimited personal liability
- The business is terminated upon the death of the owner.
- Personal credits, funds, property must be used as security for loans
- Business profits are taxed as ordinary income to the owner
- Finge benefits are not generally tax deductible
What is a general partnership? (1-10 -ANSWER Each of the partners are fully and
personally liable as co-owners of the business.
What are the advantages of a partnership? (1-10) -ANSWER - An increased ability to
raise capital
- Pooling of financial resources
- Pooling of individual talents
- The sharing of ideas and management responsibility
- Minimal administrative costs
What are the disadvantages of a partnership? (1-10) -ANSWER - General partners have
unlimited personal liability
- A partnership is terminated upon the death of a partner, by bankruptcy, or withdrawal
of a partner
- Transferability of a partnership interest is usually restricted by partnership agreement
- Fringe benefits are not generally tax deductible
What rules govern a joint venture? (1-11) -ANSWER - The same rules that govern
partnerships.
- A joint venture is usually limited to a single transaction.
Corporation (1-11) -ANSWER The corporate form of business is usually the costliest to
organize
, S Corporation (S Corp) (Page 1-11) -ANSWER The S corporation is not affected by
corporate income taxes, thereby eliminating the double taxation feature
Control of the Business (1-12) -ANSWER 51% stock ownership or control means that you
are able to make policy decisions
Fictitious Name Registration (1-14) -ANSWER - A person may engage in business under
a fictitious name by registering the name with the Division of Corporations by filling an
"Application for Registration of Fictitious Name."
- Any person who fails to comply with this act commits a misdemeanor of the second
degree
- If a change of ownership occurs, the owner(s) of record must file a cancellation and
registration within 30 days of the change.
- Fictitious names are valid for 5 years and expire on December 31 of the fifth year.
What is the name of the state form for the Application for Certificate of Registration
(Sales Tax Number)? (1-15) -ANSWER DR-1
What is the name of the federal form for the Application for Employer Identification
Number? (1-15) -ANSWER SS-4
A partnership is dissolved by: (1-21) -ANSWER - Any event that makes it unlawful for the
business of the partnership to be carried on or for the members to carry it on in the
partnership
- The death of any partner
- Bankruptcy of any partner or the partnership
- A court decree under the Partnership Act
Corporate dissolution and liquidation (1-22) -ANSWER Voluntary dissolution:
Incorporators of own interest determine to terminate the corporate existence
Involuntary dissolution: dissolved by the act of the Department of State or by decree of
a circuit court for the county in which the registered office of the corporation is located.
Permits For Construction: Construction of any structure in or across any navigable
waters of the U.S., or any road, pipeline, convey or system, or any other structure over
the, on, or adjacent to a levee or similar federally-maintained structure. (1-24) -ANSWER
U.S. Army Corps of Engineers - Jacksonville District
Form 940 -ANSWER Employer's Annual Unemployment Tax Return
Form 941 -ANSWER Employer's Quarterly Federal Tax Return
(State) UCS-1 -ANSWER Report to Determine Status
(State) USC-6S (1-26) -ANSWER Unemployment Compensation Tax Return
Contractors Manual With Questions
And Correct Answers| Graded A+
What does RFP stand for? (Page 1-7) -ANSWER Request for Proposal
What are the advantages of a sole proprietorship? (Page 1-8) -ANSWER - It is easy to
create
- There is total control by the owner
- Ownership is freely transferable
- The owner can sell, alter or exchange all or part of the business.
What are the disadvantages of a sole proprietorship? (Page 1-9) -ANSWER - The owner
has unlimited personal liability
- The business is terminated upon the death of the owner.
- Personal credits, funds, property must be used as security for loans
- Business profits are taxed as ordinary income to the owner
- Finge benefits are not generally tax deductible
What is a general partnership? (1-10 -ANSWER Each of the partners are fully and
personally liable as co-owners of the business.
What are the advantages of a partnership? (1-10) -ANSWER - An increased ability to
raise capital
- Pooling of financial resources
- Pooling of individual talents
- The sharing of ideas and management responsibility
- Minimal administrative costs
What are the disadvantages of a partnership? (1-10) -ANSWER - General partners have
unlimited personal liability
- A partnership is terminated upon the death of a partner, by bankruptcy, or withdrawal
of a partner
- Transferability of a partnership interest is usually restricted by partnership agreement
- Fringe benefits are not generally tax deductible
What rules govern a joint venture? (1-11) -ANSWER - The same rules that govern
partnerships.
- A joint venture is usually limited to a single transaction.
Corporation (1-11) -ANSWER The corporate form of business is usually the costliest to
organize
, S Corporation (S Corp) (Page 1-11) -ANSWER The S corporation is not affected by
corporate income taxes, thereby eliminating the double taxation feature
Control of the Business (1-12) -ANSWER 51% stock ownership or control means that you
are able to make policy decisions
Fictitious Name Registration (1-14) -ANSWER - A person may engage in business under
a fictitious name by registering the name with the Division of Corporations by filling an
"Application for Registration of Fictitious Name."
- Any person who fails to comply with this act commits a misdemeanor of the second
degree
- If a change of ownership occurs, the owner(s) of record must file a cancellation and
registration within 30 days of the change.
- Fictitious names are valid for 5 years and expire on December 31 of the fifth year.
What is the name of the state form for the Application for Certificate of Registration
(Sales Tax Number)? (1-15) -ANSWER DR-1
What is the name of the federal form for the Application for Employer Identification
Number? (1-15) -ANSWER SS-4
A partnership is dissolved by: (1-21) -ANSWER - Any event that makes it unlawful for the
business of the partnership to be carried on or for the members to carry it on in the
partnership
- The death of any partner
- Bankruptcy of any partner or the partnership
- A court decree under the Partnership Act
Corporate dissolution and liquidation (1-22) -ANSWER Voluntary dissolution:
Incorporators of own interest determine to terminate the corporate existence
Involuntary dissolution: dissolved by the act of the Department of State or by decree of
a circuit court for the county in which the registered office of the corporation is located.
Permits For Construction: Construction of any structure in or across any navigable
waters of the U.S., or any road, pipeline, convey or system, or any other structure over
the, on, or adjacent to a levee or similar federally-maintained structure. (1-24) -ANSWER
U.S. Army Corps of Engineers - Jacksonville District
Form 940 -ANSWER Employer's Annual Unemployment Tax Return
Form 941 -ANSWER Employer's Quarterly Federal Tax Return
(State) UCS-1 -ANSWER Report to Determine Status
(State) USC-6S (1-26) -ANSWER Unemployment Compensation Tax Return
