CM 4211 Test 2 Study Guide Questions With Complete
Solutions
"LLC" stands for limited liability corporation. Correct Answers
False (limited liability company)
A base-bid material specification is when the contract
documents name products to be used in a base bid, but the
contractors can offer alternate items. Correct Answers True
A bid bond guarantees that the contractor's bid is correct.
Correct Answers False (guarantees that the contractor will enter
into contract if bid is awarded)
A book value premium equipment floater policy is more
expensive than a replacement value policy. Correct Answers
False (the book value replacement policy will only cover the the
cost of the equipment at the time of incident, not the initial value
of the equipment)
A C corporation is taxed as an entity separate from its
shareholders. Correct Answers True
A claim in Louisiana must have a legal description of the
property on which the project was done. Correct Answers True
A claimant has two years after completing its work to file a
claim to go against a payment bond. Correct Answers False
(one year)
, A claimant on a public job cannot seize the project property to
satisfy its claim. Correct Answers True
A contractor cannot correct a bid and still be awarded the
contract as a low bidder. Correct Answers False
A contractor must represent itself in the formation of a labor
agreement. Correct Answers False (service agreement?)
A corporation has a perpetual duration (until dissolved by some
action) Correct Answers True
A hiring hall provision requires the contractor to accept workers
selected by the union. Correct Answers True
A joint venture is a partnership for a single business venture.
Correct Answers True
A night shift worker will usually be paid more than swing shift
worker. Correct Answers True
A partnership has flow-through tax characteristics. Correct
Answers True
A partnership in Louisiana may have one partner. Correct
Answers False (more than one)
A private owner on a Louisiana project may be personally liable
if a payment bond is not purchased. Correct Answers True
Solutions
"LLC" stands for limited liability corporation. Correct Answers
False (limited liability company)
A base-bid material specification is when the contract
documents name products to be used in a base bid, but the
contractors can offer alternate items. Correct Answers True
A bid bond guarantees that the contractor's bid is correct.
Correct Answers False (guarantees that the contractor will enter
into contract if bid is awarded)
A book value premium equipment floater policy is more
expensive than a replacement value policy. Correct Answers
False (the book value replacement policy will only cover the the
cost of the equipment at the time of incident, not the initial value
of the equipment)
A C corporation is taxed as an entity separate from its
shareholders. Correct Answers True
A claim in Louisiana must have a legal description of the
property on which the project was done. Correct Answers True
A claimant has two years after completing its work to file a
claim to go against a payment bond. Correct Answers False
(one year)
, A claimant on a public job cannot seize the project property to
satisfy its claim. Correct Answers True
A contractor cannot correct a bid and still be awarded the
contract as a low bidder. Correct Answers False
A contractor must represent itself in the formation of a labor
agreement. Correct Answers False (service agreement?)
A corporation has a perpetual duration (until dissolved by some
action) Correct Answers True
A hiring hall provision requires the contractor to accept workers
selected by the union. Correct Answers True
A joint venture is a partnership for a single business venture.
Correct Answers True
A night shift worker will usually be paid more than swing shift
worker. Correct Answers True
A partnership has flow-through tax characteristics. Correct
Answers True
A partnership in Louisiana may have one partner. Correct
Answers False (more than one)
A private owner on a Louisiana project may be personally liable
if a payment bond is not purchased. Correct Answers True
