FTT 240 EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026
When purchased for someone else whether they are a prohibited person or not - Answers A straw
purchase for firearms or ammo occurs when someone purchases a firearm or ammo under which of
the following conditions:
c. Prohibited Person - Answers Someone who cannot lawfully receive, possess, ship, or transport a
firearm is called which of the following:
b. Residents of their state who are not prohibited persons. - Answers A Federal Firearms License
entitles a person to buy and sell, at wholesale or retail, firearms and ammunition to which of the
following:
True - Answers T/F: A person may sell a firearm to an unlicensed resident of his state, if he does not
know or have reasonable cause to believe the person is prohibited from receiving or possessing
firearms under federal law.
False - Answers T/F: There is sometimes a fine line between gunsmithing and manufacturing. If you
are modifying a firearm to prepare it for sale, generally speaking, you are gunsmithing.
a. Taking possession of someone else's firearm to make repairs for profit
**b. All of these choices.**
c. Reloading ammunition and selling it to the local range
d. Buying and selling guns for retail or wholesale - Answers A person is considered to be "engaging in
business" and must obtain a Federal Firearms License if they are doing which of the following:
False - Answers T/F: A Federal Firearms License covers operations only at the location shown on the
license, and not certain activities, such as gun shows and similar activities.
b. Start-Up Costs - Answers The one time costs a new business owner can expect to incur are called
which of the following:
a. Worker's Compensation Insurance - Answers The typical business insurance coverage needed
includes Comprehensive Liability Coverage, Fire and Interruption-of-Service Insurance, Burglary
Insurance, and which of the following:
c. Cash Flow - Answers Cash that comes in and out of a business is called which of the following:
b. Zoning Permit - Answers When starting a business you need to check for Business Licenses, State
Licensing, Seller's Permit, and which of the following:
Partnership - Answers An association of two or more people who run a business for profit is called
which of the following:
Sole Proprietorship - Answers The simplest business entity is which of the following:
a. Limited Liability Company - Answers A unique business structure that combines features from both
the corporation and partnership models, while providing businesses with several taxation and
management options is called which of the following:
a. County Clerk's Office - Answers Once you decide on a name, register it with which of the following:
Corporation - Answers A commonly misunderstood business structure, which may be complicated and
expensive to set up, and has many reporting requirements, is which of the following:
Duty Weapons - Answers With sales to law enforcement officers, the most important thing to
remember is that this exemption only applies to which of the following:
True - Answers T/F: The minimum age to obtain a firearm is 18.
c. Self-Financing - Answers The course text lists the following options for financing a new business
include: Borrowing From a Bank, Borrowing From Family and Friends, Using Credit Cards, and
_______:
Fair - Answers A gun that is described as follows: "In safe working condition, but well worn, perhaps
requiring replacement of minor parts or adjustments that should be indicated in advertisement" - is
which of the following condition standards:
True - Answers T/F: Centerfire rifles are evaluated like any other firearm— usually by the percentage
of bluing remaining on the gun.
a. Appraisals are Based on Photos - Answers Online appraisers are available for a fraction of the cost
but are not as accurate primarily because of which of the following:
Blue Book of Gun Values - Answers Anyone who buys, sells, trades, appraises, or repairs guns should
have Gun Trader's Guide, Antique Firearms: The Collector's Guide, and which of the following:
Excellent - Answers A gun that is described as follows: "New condition, used very little, no noticeable
marring of wood or metal, bluing perfect (except at muzzle or sharp edges)" - is which of the following
condition standards:
When purchased for someone else whether they are a prohibited person or not - Answers A straw
purchase for firearms or ammo occurs when someone purchases a firearm or ammo under which of
the following conditions:
c. Prohibited Person - Answers Someone who cannot lawfully receive, possess, ship, or transport a
firearm is called which of the following:
b. Residents of their state who are not prohibited persons. - Answers A Federal Firearms License
entitles a person to buy and sell, at wholesale or retail, firearms and ammunition to which of the
following:
True - Answers T/F: A person may sell a firearm to an unlicensed resident of his state, if he does not
know or have reasonable cause to believe the person is prohibited from receiving or possessing
firearms under federal law.
False - Answers T/F: There is sometimes a fine line between gunsmithing and manufacturing. If you
are modifying a firearm to prepare it for sale, generally speaking, you are gunsmithing.
a. Taking possession of someone else's firearm to make repairs for profit
**b. All of these choices.**
c. Reloading ammunition and selling it to the local range
d. Buying and selling guns for retail or wholesale - Answers A person is considered to be "engaging in
business" and must obtain a Federal Firearms License if they are doing which of the following:
False - Answers T/F: A Federal Firearms License covers operations only at the location shown on the
license, and not certain activities, such as gun shows and similar activities.
b. Start-Up Costs - Answers The one time costs a new business owner can expect to incur are called
which of the following:
a. Worker's Compensation Insurance - Answers The typical business insurance coverage needed
includes Comprehensive Liability Coverage, Fire and Interruption-of-Service Insurance, Burglary
Insurance, and which of the following:
c. Cash Flow - Answers Cash that comes in and out of a business is called which of the following:
b. Zoning Permit - Answers When starting a business you need to check for Business Licenses, State
Licensing, Seller's Permit, and which of the following:
Partnership - Answers An association of two or more people who run a business for profit is called
which of the following:
Sole Proprietorship - Answers The simplest business entity is which of the following:
a. Limited Liability Company - Answers A unique business structure that combines features from both
the corporation and partnership models, while providing businesses with several taxation and
management options is called which of the following:
a. County Clerk's Office - Answers Once you decide on a name, register it with which of the following:
Corporation - Answers A commonly misunderstood business structure, which may be complicated and
expensive to set up, and has many reporting requirements, is which of the following:
Duty Weapons - Answers With sales to law enforcement officers, the most important thing to
remember is that this exemption only applies to which of the following:
True - Answers T/F: The minimum age to obtain a firearm is 18.
c. Self-Financing - Answers The course text lists the following options for financing a new business
include: Borrowing From a Bank, Borrowing From Family and Friends, Using Credit Cards, and
_______:
Fair - Answers A gun that is described as follows: "In safe working condition, but well worn, perhaps
requiring replacement of minor parts or adjustments that should be indicated in advertisement" - is
which of the following condition standards:
True - Answers T/F: Centerfire rifles are evaluated like any other firearm— usually by the percentage
of bluing remaining on the gun.
a. Appraisals are Based on Photos - Answers Online appraisers are available for a fraction of the cost
but are not as accurate primarily because of which of the following:
Blue Book of Gun Values - Answers Anyone who buys, sells, trades, appraises, or repairs guns should
have Gun Trader's Guide, Antique Firearms: The Collector's Guide, and which of the following:
Excellent - Answers A gun that is described as follows: "New condition, used very little, no noticeable
marring of wood or metal, bluing perfect (except at muzzle or sharp edges)" - is which of the following
condition standards:
