NASCLA BUSINESS LAW LATEST PRACTICE TEST
QUESTIONS AND SOLUTIONS GUARANTEE A+
✔✔Unemployment insurance (NJ) - ✔✔Funded by employer payroll taxes; rate based
on employer's claims history ("experience rating").
✔✔SUTA dumping - ✔✔Illegal practice of shifting employees between entities to obtain
lower unemployment tax rates.
✔✔Surety bond - ✔✔Three-party agreement guaranteeing contract completion or
payment; includes contractor, owner, and surety.
✔✔Bid Bond - ✔✔Guarantees that the contractor, if awarded the job, will do the work at
the submitted bid price
✔✔Performance Bond - ✔✔Guarantees that the contractor will complete a contract
within its time frame and conditions.
✔✔payment bond - ✔✔guarantees subcontractors and suppliers that they will be paid
for work if they perform properly under the contract.
✔✔maintenance bond - ✔✔guarantees that for a stated period, typically for one year,
no defective workmanship or material will appear in the completed project.
✔✔completion bond - ✔✔provides assurance to the financial backers of a construction
project that it will be completed on time.
✔✔fidelity bond - ✔✔covers business owners for losses due to dishonest acts by their
employees
✔✔lien bond - ✔✔guarantees that liens cannot be placed against the owner's property
by contractors for payment of services.
✔✔Bond qualification factors - ✔✔Good credit, financial stability, experience,
equipment, and reputation.
✔✔Miller Act (1935) - ✔✔Requires performance and payment bonds on federal projects
over $100,000.
✔✔Construction Industry Payment Protection Act (1999) - ✔✔Strengthened payment
protections for subcontractors and suppliers on federal projects.
✔✔Time is Money - ✔✔Phrase emphasizing that efficient time use directly affects
profitability.
, ✔✔Six Time Management Tips - ✔✔Set goals, prioritize daily, delegate, use
checklists/calendars, avoid procrastination, embrace technology.
✔✔Delegation - ✔✔Assigning responsibility to employees to increase efficiency and
develop their skills.
✔✔Benefits of Delegation - ✔✔Builds employee confidence, motivation, and
productivity while freeing leadership time.
✔✔Key Steps to Delegate - ✔✔Explain tasks clearly, verify understanding, follow up,
give feedback.
✔✔Business Ethics - ✔✔Acting with honesty, fairness, and respect; foundation of good
reputation and professionalism.
✔✔Code of Conduct - ✔✔Written standards outlining company ethics, employee
expectations, and community commitment.
✔✔Benefits of Technology - ✔✔Enhances communication, reduces errors, improves
efficiency and competitiveness.
✔✔Software Warning - ✔✔Tools like accounting software require understanding of the
underlying business principles.
✔✔NJ Small Business Portal - ✔✔State resource for licensing, taxes, insurance, and
startup guidance (https://business.nj.gov).
✔✔NJ Small Business Development Center (NJSBDC) - ✔✔Provides training and
consulting via community colleges (www.njsbdc.com).
✔✔Small Business Administration (SBA) - ✔✔Federal agency offering counseling,
funding, and contracting resources (www.sba.gov).
✔✔SCORE - ✔✔National volunteer organization offering mentoring and business
advice (www.score.org).
✔✔Federal Certifications (via SBA) - ✔✔HUBZone, 8(a), Women-Owned, Veteran-
Owned, and Minority-Owned certifications.
✔✔NJ Treasury Certification Site - ✔✔Provides state-level small/minority/women-owned
business certification info (business.nj.gov/pages/certifications).
QUESTIONS AND SOLUTIONS GUARANTEE A+
✔✔Unemployment insurance (NJ) - ✔✔Funded by employer payroll taxes; rate based
on employer's claims history ("experience rating").
✔✔SUTA dumping - ✔✔Illegal practice of shifting employees between entities to obtain
lower unemployment tax rates.
✔✔Surety bond - ✔✔Three-party agreement guaranteeing contract completion or
payment; includes contractor, owner, and surety.
✔✔Bid Bond - ✔✔Guarantees that the contractor, if awarded the job, will do the work at
the submitted bid price
✔✔Performance Bond - ✔✔Guarantees that the contractor will complete a contract
within its time frame and conditions.
✔✔payment bond - ✔✔guarantees subcontractors and suppliers that they will be paid
for work if they perform properly under the contract.
✔✔maintenance bond - ✔✔guarantees that for a stated period, typically for one year,
no defective workmanship or material will appear in the completed project.
✔✔completion bond - ✔✔provides assurance to the financial backers of a construction
project that it will be completed on time.
✔✔fidelity bond - ✔✔covers business owners for losses due to dishonest acts by their
employees
✔✔lien bond - ✔✔guarantees that liens cannot be placed against the owner's property
by contractors for payment of services.
✔✔Bond qualification factors - ✔✔Good credit, financial stability, experience,
equipment, and reputation.
✔✔Miller Act (1935) - ✔✔Requires performance and payment bonds on federal projects
over $100,000.
✔✔Construction Industry Payment Protection Act (1999) - ✔✔Strengthened payment
protections for subcontractors and suppliers on federal projects.
✔✔Time is Money - ✔✔Phrase emphasizing that efficient time use directly affects
profitability.
, ✔✔Six Time Management Tips - ✔✔Set goals, prioritize daily, delegate, use
checklists/calendars, avoid procrastination, embrace technology.
✔✔Delegation - ✔✔Assigning responsibility to employees to increase efficiency and
develop their skills.
✔✔Benefits of Delegation - ✔✔Builds employee confidence, motivation, and
productivity while freeing leadership time.
✔✔Key Steps to Delegate - ✔✔Explain tasks clearly, verify understanding, follow up,
give feedback.
✔✔Business Ethics - ✔✔Acting with honesty, fairness, and respect; foundation of good
reputation and professionalism.
✔✔Code of Conduct - ✔✔Written standards outlining company ethics, employee
expectations, and community commitment.
✔✔Benefits of Technology - ✔✔Enhances communication, reduces errors, improves
efficiency and competitiveness.
✔✔Software Warning - ✔✔Tools like accounting software require understanding of the
underlying business principles.
✔✔NJ Small Business Portal - ✔✔State resource for licensing, taxes, insurance, and
startup guidance (https://business.nj.gov).
✔✔NJ Small Business Development Center (NJSBDC) - ✔✔Provides training and
consulting via community colleges (www.njsbdc.com).
✔✔Small Business Administration (SBA) - ✔✔Federal agency offering counseling,
funding, and contracting resources (www.sba.gov).
✔✔SCORE - ✔✔National volunteer organization offering mentoring and business
advice (www.score.org).
✔✔Federal Certifications (via SBA) - ✔✔HUBZone, 8(a), Women-Owned, Veteran-
Owned, and Minority-Owned certifications.
✔✔NJ Treasury Certification Site - ✔✔Provides state-level small/minority/women-owned
business certification info (business.nj.gov/pages/certifications).
