Contractors Business Law Exam Questions and Answers, Latest Updated 2024/2025 (GRADED A+)

If an employer's Federal Payroll Tax liability is $1000 how may they pay taxes? (Ans- quarterly How many employees does it take for the Fair Labor Act to be applied? (Ans- 1 What accounting method records income when the service occurs and expense when they are incurred? (Ans- Accrual Method What do the General Conditions of a contract do? (Ans- Outline roles of the owner, architect, and engineer. You are purchasing an insurance policy with a monthly premium of $300. If you implement a safety program you can save 10% on the cost of the policy. The safety program costs $400 to start and $15 a month to maintain it. What would be the net difference in cost over three year period with a safety program? (Ans- Net saving of $140 Written construction contract change order should include a description of the modification to be made, any change in contract time and (Ans- The change in the contract dollar amount Which of the following is a written agreement between the owner and contractor to change the contract? (Ans- change order Contractors Business Law Exam Questions and Answers, Updated 2024/2025 (GRADED A+) What term identifies money withheld from progress payments to the contractor and paid after the completion of the project? (Ans- Retainage When is final payment due? (Ans- Final inspection, acceptance by owner and submittal of proper documentation must occur After hiring a disabled person, which of the following can't you do, according to the American with Disabilities Act? (Ans- Require a medical examination of just the person you suspect is disabled. The percentage of completion method of accounting does what (Ans- recognizes profit as it is earned Workers are on a job site where noise is very loud. Who is supposed to supply the workers with ear protection? (Ans- contractor (employer) Where can you get accurate information about tax deposit schedules? (Ans- IRS Publication Circular E Which of the following statements correctly describes the cash method of accounting? (Ans- Income / expenses are recorded at the time they are received / paid What type of workplace insurance provides all the benefits required by law for employees' who are killed or injured as a result of their employment (Ans- Workers Compensation If an employee is covered by Workers Compensation in the state of Utah and is doing a job in Colorado and gets injured, are they covered by Utah Workers Compensation? (Ans- Yes, the Utah fund would cover the employee but the employer should look into getting coverage in state of Colorado also. After the division receives an application for licensure, how many days does the division have to decide whether to issue a license to that applicant? (Ans- 5 days# NASLCA 2nd edition pg E- With a Residential Small Commercial license (R100) how many units can build for multi family units? (Ans- a four plex What will happen to the contractor if he fails to notify the Division of Professional and Occupational Licensing of a disassociation. (Ans- The license will be suspended. The company's work site exposes the employees working there to hazardous materials. Who is responsible for making sure each person coming to the site wears the correct protective equipment? (Ans- Employer Which of the following SHOULD be included for the schedule of progress payments (Ans- date or stage when each payment is due An employer must submit a completed I-9 form for all employees within how may days of hire date? (Ans- 3 days Of the following who has the responsibility for material delivery and storage of materials (Ans- expediter The total time given for the construction of a job is 6 months. The framing is given 2 months to complete. The framing will only take 1 month to complete. What is the amount of float time that is available for the framing? (Ans- 1 month In which of the contracts does the contractor agree to complete the project for a predetermined, specific price? (Ans- Lump sum Which of the following is a disadvantage of owning a sole proprietorship? (Ans- unlimited liability What is the purpose of a mechanics lien? (Ans- To make claim on someone's property as security against the payment of debt Indoor and outdoor air quality should be monitored: (Ans- throughout the construction project What is a survey or quantity take off? (Ans- Complete listing of all materials and items of work needed in the project Which of the following is a snapshot of a business at any given time? (Ans- Balance Sheet The responsibilities of the special inspector include all of the following EXCEPT: (Ans- P.O. Box number Which defines what a current liability is? (Ans- liabilities that will mature and must be paid within one year A qualifier must prove DOPL that? (Ans- that they have a management position What are liquidated damages? (Ans- Monetary compensation for loss suffered due to a breach of contract According to the OSHA which is the most hazardous? (Ans- Lead Which of the following is not regulated by FLSA? (Ans- Vacation and holiday pay What type of insurance covers contractors for losses due to vandalism and malicious mischief? (Ans- All-Risk builders risk The MAXIMUM allowable time to notify the department of Occupational and Professional Licensing that your qualifier has left the company is: (Ans- 10 days An employer must determine how much income tax to withhold from each employees wages. What is the document used to determine the amount to be withheld? (Ans- Form W-4