MHIC NASCLA CONTRACTORS
PREPARATION TEST 2026 QUESTIONS AND
CORRECT ANSWERS GRADED A+
● advantages of sole proprietorship. Answer: -minimal legal restrictions
-simple ownership form
-low start up costs
-sole ownership of profits
-freedom in decision making process
● disadvantages of sole proprietorship. Answer: -unlimited personal
liability
-less available capital
-possible difficulty obtaining long-term financing
-dissolution of the business on the even of the owner's death
● who has limited liability in the company?. Answer: limited partners
● advantages of a general partnership. Answer: -ease of formation
-direct profit rewards
-larger management base than that of a sole proprietorship
, ● disadvantages of a general partnership. Answer: -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
● bid documents. Answer: -invitation to bid
-bid instructions
-bid forms
-supplements
● what is an invitation to bid. Answer: gives a brief overview of the
project, deadlines, and general requirements
● bid instructions. Answer: contain specifics of how the bis should be
completed and submitted
● bid forms. Answer: bid sheet
bid schedule
bidder's questionnaire on the experience
financial responsibility and capability
copy of the contract
PREPARATION TEST 2026 QUESTIONS AND
CORRECT ANSWERS GRADED A+
● advantages of sole proprietorship. Answer: -minimal legal restrictions
-simple ownership form
-low start up costs
-sole ownership of profits
-freedom in decision making process
● disadvantages of sole proprietorship. Answer: -unlimited personal
liability
-less available capital
-possible difficulty obtaining long-term financing
-dissolution of the business on the even of the owner's death
● who has limited liability in the company?. Answer: limited partners
● advantages of a general partnership. Answer: -ease of formation
-direct profit rewards
-larger management base than that of a sole proprietorship
, ● disadvantages of a general partnership. Answer: -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
● bid documents. Answer: -invitation to bid
-bid instructions
-bid forms
-supplements
● what is an invitation to bid. Answer: gives a brief overview of the
project, deadlines, and general requirements
● bid instructions. Answer: contain specifics of how the bis should be
completed and submitted
● bid forms. Answer: bid sheet
bid schedule
bidder's questionnaire on the experience
financial responsibility and capability
copy of the contract
