NASCLA BUSINESS LAW LATEST 2026 FINAL EXAM
QUESTIONS AND SOLUTIONS GUARANTEE A+
✔✔profit - ✔✔total revenue minus total cost
✔✔Invitation to Bid - ✔✔A documents described the proposed project.
✔✔$7,000 - ✔✔If an employer receives a citation, but fails to correct the violation, the
employer must be fined up to ___ for each day the violation continues
✔✔$5,000 - ✔✔Minimum per penalty for each violation for a willful OSHA violation
✔✔direct costs of a cost object - ✔✔Costs related to the particular cost object (labor,
materials and subcontractors)
✔✔Individual Retirement Account - ✔✔An account such as an IRA or 401(k) that helps
an individual set aside money for retirement. EXEMPT from STATE'S WITHHOLDING.
✔✔Balance Sheet - ✔✔A financial statement that reports assets, liabilities, and owner's
equity on a specific date.
✔✔general and project overhead - ✔✔overheads are not used to calculate GROSS
PROFIT of a job.
✔✔FICA (6.2%) + Medicare (1.45%) = 7.65% - ✔✔what percentage of each employee's
earning must the employer contribute to SSA and Medicare taxes?
✔✔Workers' Compensation Insurance (3 or more employees) - ✔✔type of insurance is
required by law for large contracting company
✔✔Fidelity Bond - ✔✔Insurance coverage to protect a business from losses due to
employee theft
✔✔laborers, suppliers, subcontractors, prime contractors - ✔✔when property is sold to
satisfy debs, payment are made in the following sequence:
✔✔I-9 Form - ✔✔Employment eligibility verification form, used for verifying the identity
and employment authorization of individuals hired for employment in the United States.
MUST BE FILED WITHIN 3 BUSINESS DAYS!
✔✔FLSA (Fair Labor Standards Act) - ✔✔Federal law that establishes a minimum wage
and requirements for overtime pay and child labor
, ✔✔fine up to $10k and/or up to 6 months imprisonment - ✔✔if the supervisor knowingly
changes statements in the injury log,
✔✔Acid test ratio (quick ratio) - ✔✔(Current Assets - Inventory) / Current Liabilities
✔✔Current Ratio Formula - ✔✔Current Assets / Current Liabilities
✔✔Return on Assets - ✔✔Net Income/Total Assets
✔✔Return on Total Assets (ROA) - ✔✔which ratio is used to indicate how well the
company's asset are being used?
✔✔margin of profit - ✔✔Net income / Revenue (Sales)
✔✔Accrual Accounting - ✔✔accounting method that records revenues and expenses
when they occur, not necessarily when cash actually changes hands
✔✔Cash accounting method - ✔✔Accounting method where income and expenses are
recorded at the time the money changes hands. DOES NOT RECORD BAD DEBTS!
✔✔Comprehensive General Liability - ✔✔broad coverage for personal injuries or
property damage.
✔✔Indirect costs (overheads) - ✔✔costs that are the result of a firm's general
operations and are not directly tied to any specific cost object
✔✔Balance Sheet Formula - ✔✔Assets = Liabilities + Stockholders' Equity
✔✔12 inches - ✔✔Wood plates are being laid out so that the rough openings for the
doors can be located. Anchor bolts must be placed so that there is a bolt located within
how many inches from the end of each section plate?
✔✔$0 - ✔✔A contractor puts in a claim under a comprehensive standard general
liability policy. The policy has no additional coverage, riders, or floaters, and has a
$1,000 deductible per occurrence. The claim is for a job-site accident that caused
$5,000 of injuries to employees, $1,000 of injuries to a pedestrian, $3,000 damage to
the contractor's equipment, and $3,000 loss of project materials purchased by the
contractor. The insurance company is liable for
✔✔50 degrees Fahrenheit - ✔✔What is the minimum temperature to be maintained
during gypsum board finishing procedures?
✔✔75% - ✔✔For a concrete masonry wall to be solid, all units must have at least what
percentage of its net area as solid?
QUESTIONS AND SOLUTIONS GUARANTEE A+
✔✔profit - ✔✔total revenue minus total cost
✔✔Invitation to Bid - ✔✔A documents described the proposed project.
✔✔$7,000 - ✔✔If an employer receives a citation, but fails to correct the violation, the
employer must be fined up to ___ for each day the violation continues
✔✔$5,000 - ✔✔Minimum per penalty for each violation for a willful OSHA violation
✔✔direct costs of a cost object - ✔✔Costs related to the particular cost object (labor,
materials and subcontractors)
✔✔Individual Retirement Account - ✔✔An account such as an IRA or 401(k) that helps
an individual set aside money for retirement. EXEMPT from STATE'S WITHHOLDING.
✔✔Balance Sheet - ✔✔A financial statement that reports assets, liabilities, and owner's
equity on a specific date.
✔✔general and project overhead - ✔✔overheads are not used to calculate GROSS
PROFIT of a job.
✔✔FICA (6.2%) + Medicare (1.45%) = 7.65% - ✔✔what percentage of each employee's
earning must the employer contribute to SSA and Medicare taxes?
✔✔Workers' Compensation Insurance (3 or more employees) - ✔✔type of insurance is
required by law for large contracting company
✔✔Fidelity Bond - ✔✔Insurance coverage to protect a business from losses due to
employee theft
✔✔laborers, suppliers, subcontractors, prime contractors - ✔✔when property is sold to
satisfy debs, payment are made in the following sequence:
✔✔I-9 Form - ✔✔Employment eligibility verification form, used for verifying the identity
and employment authorization of individuals hired for employment in the United States.
MUST BE FILED WITHIN 3 BUSINESS DAYS!
✔✔FLSA (Fair Labor Standards Act) - ✔✔Federal law that establishes a minimum wage
and requirements for overtime pay and child labor
, ✔✔fine up to $10k and/or up to 6 months imprisonment - ✔✔if the supervisor knowingly
changes statements in the injury log,
✔✔Acid test ratio (quick ratio) - ✔✔(Current Assets - Inventory) / Current Liabilities
✔✔Current Ratio Formula - ✔✔Current Assets / Current Liabilities
✔✔Return on Assets - ✔✔Net Income/Total Assets
✔✔Return on Total Assets (ROA) - ✔✔which ratio is used to indicate how well the
company's asset are being used?
✔✔margin of profit - ✔✔Net income / Revenue (Sales)
✔✔Accrual Accounting - ✔✔accounting method that records revenues and expenses
when they occur, not necessarily when cash actually changes hands
✔✔Cash accounting method - ✔✔Accounting method where income and expenses are
recorded at the time the money changes hands. DOES NOT RECORD BAD DEBTS!
✔✔Comprehensive General Liability - ✔✔broad coverage for personal injuries or
property damage.
✔✔Indirect costs (overheads) - ✔✔costs that are the result of a firm's general
operations and are not directly tied to any specific cost object
✔✔Balance Sheet Formula - ✔✔Assets = Liabilities + Stockholders' Equity
✔✔12 inches - ✔✔Wood plates are being laid out so that the rough openings for the
doors can be located. Anchor bolts must be placed so that there is a bolt located within
how many inches from the end of each section plate?
✔✔$0 - ✔✔A contractor puts in a claim under a comprehensive standard general
liability policy. The policy has no additional coverage, riders, or floaters, and has a
$1,000 deductible per occurrence. The claim is for a job-site accident that caused
$5,000 of injuries to employees, $1,000 of injuries to a pedestrian, $3,000 damage to
the contractor's equipment, and $3,000 loss of project materials purchased by the
contractor. The insurance company is liable for
✔✔50 degrees Fahrenheit - ✔✔What is the minimum temperature to be maintained
during gypsum board finishing procedures?
✔✔75% - ✔✔For a concrete masonry wall to be solid, all units must have at least what
percentage of its net area as solid?
