Nascla Contractors Guide (Virginia 8th
Edition) & Virginia Uniform Statewide
Building Code "USBC" (2000 Edition)
Questions and Answers
What are some of the advantages of a sole proprietor? -
Correct Answers ✅Business can be sold at will
Freedom in Decision Making Process
Sole Ownership of Profits
Low startup cost
Simple Ownership Form
Minimal Legal Restriction
What are some of the disadvantages of a Sole Proprietor? -
Correct Answers ✅Less Available capital
Unlimited Personal Liability
Possible difficulty obtaining long term financing
dissolution of the business in the event of the owner's death
This is the relationship between two or more persons who join
to carry on a trade or business. Each person contributes
money, property,labor, or skill and each partner expects to
share in the profits and losses of the business. - Correct
Answers ✅Is classified as a Partnership
What are the two different types of partnerships? - Correct
Answers ✅General Partnership & Limited Partnership
,Nascla Contractors Guide (Virginia 8th
Edition) & Virginia Uniform Statewide
Building Code "USBC" (2000 Edition)
Questions and Answers
This partnership consists of one or more general partners and
one or more limited partners. Limited partners have limited
Liability in the company. In this partnership the partners have
no personal liability for the business partnership. They are
liable only for the previously agreed-upon contribution to or
investment in the business. - Correct Answers ✅Limited
Partnership
This partnership consists of general partners that own the
assets of the company just as individual own assets in a sole
proprietorship. In this partnership all owners have personal
and unlimited liability for all actions undertaken in the name
of the business including debt. Each partner is responsible for
the acts of others partners when they act in the name of the
business. - Correct Answers ✅General Partnership
What are some of the disadvantages of a general
partnership? - Correct Answers ✅Unlimited personal
Liability of general Partners
Multiple Decision Makers
Limited lIfe of the Business
Changes of partners or partnership agreement may be
difficult
Partnership dissolves in the event of the death of a general
Partner
,Nascla Contractors Guide (Virginia 8th
Edition) & Virginia Uniform Statewide
Building Code "USBC" (2000 Edition)
Questions and Answers
The Virginia State statute requires that prior to a joint venture
engaging in or offering to engage in contracting work in
Virginia - Correct Answers ✅Each contracting party of the
joint venture shall be properly licensed under the Virginia
licensing law or a proper contractor's license shall be
obtained in the name of the joint venture.
What is a joint venture? - Correct Answers ✅This is a
special business arrangement that exists when two or more
companies joint undertake a specific project.
What is the purpose of Licensing & why is it required? -
Correct Answers ✅A major purpose of licensing is to
protect the health, safety, and welfare of the public. Licensing
establishes entrance requirements standards of practice and
disciplinary authority to protect the public from unqualified
incompetent and unethical contractors.
It was established to regulate businesses that construct or
improve facilities on property owned by others. - Correct
Answers ✅Virginia Board for Contractors
, Nascla Contractors Guide (Virginia 8th
Edition) & Virginia Uniform Statewide
Building Code "USBC" (2000 Edition)
Questions and Answers
The Board is composed of 15 governor-appointed members
who serve 4 years and includes what? - Correct Answers
✅- Seven Licensed Contractor members
- 3 representatives from the tradesman Licensure Program
-one local building official member
What is one of the exemptions that exists in the virginia
Licensing law? - Correct Answers ✅Any material supplier
who renders advice concerning use of products sold and who
does not provide construction or installation services.
What is the total value of a single contract or project for a
License Class A? - Correct Answers ✅$120,000 or More for
a single contract or project
What is the total value of all projects in 12 month period for a
class A license class? - Correct Answers ✅$750,000 or
More
How are license classes determined? - Correct Answers
✅License classes are determined by Net Worth.
The specific minimum net worth requirements for class A is -
Correct Answers ✅$45,000 or more
Edition) & Virginia Uniform Statewide
Building Code "USBC" (2000 Edition)
Questions and Answers
What are some of the advantages of a sole proprietor? -
Correct Answers ✅Business can be sold at will
Freedom in Decision Making Process
Sole Ownership of Profits
Low startup cost
Simple Ownership Form
Minimal Legal Restriction
What are some of the disadvantages of a Sole Proprietor? -
Correct Answers ✅Less Available capital
Unlimited Personal Liability
Possible difficulty obtaining long term financing
dissolution of the business in the event of the owner's death
This is the relationship between two or more persons who join
to carry on a trade or business. Each person contributes
money, property,labor, or skill and each partner expects to
share in the profits and losses of the business. - Correct
Answers ✅Is classified as a Partnership
What are the two different types of partnerships? - Correct
Answers ✅General Partnership & Limited Partnership
,Nascla Contractors Guide (Virginia 8th
Edition) & Virginia Uniform Statewide
Building Code "USBC" (2000 Edition)
Questions and Answers
This partnership consists of one or more general partners and
one or more limited partners. Limited partners have limited
Liability in the company. In this partnership the partners have
no personal liability for the business partnership. They are
liable only for the previously agreed-upon contribution to or
investment in the business. - Correct Answers ✅Limited
Partnership
This partnership consists of general partners that own the
assets of the company just as individual own assets in a sole
proprietorship. In this partnership all owners have personal
and unlimited liability for all actions undertaken in the name
of the business including debt. Each partner is responsible for
the acts of others partners when they act in the name of the
business. - Correct Answers ✅General Partnership
What are some of the disadvantages of a general
partnership? - Correct Answers ✅Unlimited personal
Liability of general Partners
Multiple Decision Makers
Limited lIfe of the Business
Changes of partners or partnership agreement may be
difficult
Partnership dissolves in the event of the death of a general
Partner
,Nascla Contractors Guide (Virginia 8th
Edition) & Virginia Uniform Statewide
Building Code "USBC" (2000 Edition)
Questions and Answers
The Virginia State statute requires that prior to a joint venture
engaging in or offering to engage in contracting work in
Virginia - Correct Answers ✅Each contracting party of the
joint venture shall be properly licensed under the Virginia
licensing law or a proper contractor's license shall be
obtained in the name of the joint venture.
What is a joint venture? - Correct Answers ✅This is a
special business arrangement that exists when two or more
companies joint undertake a specific project.
What is the purpose of Licensing & why is it required? -
Correct Answers ✅A major purpose of licensing is to
protect the health, safety, and welfare of the public. Licensing
establishes entrance requirements standards of practice and
disciplinary authority to protect the public from unqualified
incompetent and unethical contractors.
It was established to regulate businesses that construct or
improve facilities on property owned by others. - Correct
Answers ✅Virginia Board for Contractors
, Nascla Contractors Guide (Virginia 8th
Edition) & Virginia Uniform Statewide
Building Code "USBC" (2000 Edition)
Questions and Answers
The Board is composed of 15 governor-appointed members
who serve 4 years and includes what? - Correct Answers
✅- Seven Licensed Contractor members
- 3 representatives from the tradesman Licensure Program
-one local building official member
What is one of the exemptions that exists in the virginia
Licensing law? - Correct Answers ✅Any material supplier
who renders advice concerning use of products sold and who
does not provide construction or installation services.
What is the total value of a single contract or project for a
License Class A? - Correct Answers ✅$120,000 or More for
a single contract or project
What is the total value of all projects in 12 month period for a
class A license class? - Correct Answers ✅$750,000 or
More
How are license classes determined? - Correct Answers
✅License classes are determined by Net Worth.
The specific minimum net worth requirements for class A is -
Correct Answers ✅$45,000 or more
