NASCLA Business Law and Management Exam Questions With 100% Correct Answers | Latest Update 2024/2025 | Rated A+

Sole Proprietorship - Correct Answer-a business owned and managed by a single individual Simplest form to set up unlimited Liability Partnerships - Correct Answer-Business organizations in which two or more persons share responsibilities, costs, profits, and losses. C Corporations - Correct Answer-Corporations that have no restrictions on who owns their shares or the number of shareholders; they cannot qualify for subchapter S tax treatment and are subject to direct taxation S corporation - Correct Answer-A unique government creation that looks like a corporation but is taxed like sole proprietorships and partnerships No more than 100 shareholders FILING IRS FORM 2553 NASCLA Business Law and Management Exam Questions With 100% Correct Answers | Latest Update 2024/2025 | Rated A+ pg. 2 professoraxe l Limited liability company - Correct Answer-A business organization in which the business (not the owner) is liable for the company's debts joint venture - Correct Answer-an agreement between two or more companies to share a business project Reserving business Name - Correct Answer-Register with secretary of state Purpose of licensing - Correct Answer-Protect Health, Safety, and welfare of the public When is a Contractors license Needed? - Correct AnswerExcess of $5000 cease and desist order - Correct Answer-ruling requiring a company to stop an unfair business practice from performing work without a license pg. 3 professoraxe l Monetary limitations for general and mechanical contractors - Correct Answer-determined by the financial net worth of the entity seeking licensure Group Limitations - Correct Answer-Divided into groups according to net worth. Reciprocity - Correct Answer-South Carolina has a reciprocal agreement with certain states but licensee must still pass the business and law exam. Property insurance - Correct Answer-A type of insurance that covers damage to property, such as a home. liability insurance - Correct Answer-insurance that provides protection from claims arising from injuries or damage to other people or property Business Owners Policy (BOP) - Correct Answer-Property and liability Coverage are bundles under business owners policies Automobile Insurance - Correct Answer-Provides payments for both liability and physical damage to vehicles pg. 4 professoraxe l Burglary and Theft Insurance - Correct Answer-Loss or damage by burglary, theft, Larceny, Robbery, Forgery, Fraud, and vandalism. Key Man Life Insurance - Correct Answer-This type of insurance is available as life insurance or disability insurance to protect continuing sucess of your business. Coverage Gaps and Overlaps - Correct Answer-It is important to evaluate all your insurance coverage. Using one insurer may minimize gaps and overlaps in coverage. Bid Documents include - Correct Answer-An invitation to Bid Bid instructions Bid forms Supplements Ethics in bidding - Correct Answer-Bid Shopping Bid Peddling Bid Rigging pg. 5 professoraxe l Bid Shopping - Correct Answer-The practice of revealing the sub-bid of one subcontractor to obtain a lower price from another subcontractor. Bid Peddling - Correct Answer-approaching the general contractor once you won the job and try to get the price lower bid rigging - Correct Answer-Contractors Coordinate their bids to fix the award outcome of a project Total Material Unit Cost - Correct Answer-Price Per unit x Number of units Needed Required Contract Elements - Correct Answer-Acceptance, Consideration, competent parties, and legal purpose Contract Provisions - Correct Answer-Contract price and payment terms obligation of the parties breach of contract pg. 6 professoraxe l breach of contract - Correct Answer-one party fails to fulfill contract boiler plate provisions - Correct Answer-Contain standard Language designed to protect you in the event of a lawsuit Provisions to limit Risk - Correct Answer-Limit the liability of the contracting parties by addressing allocation of risk recitals - Correct Answer-Appears at the beginning of the contract and is intended to give background information Types of Contsruction Contracts - Correct Answer-adress who is responsible for cost savings and overuns for estimated work Sources of Contracts - Correct Answer-American institute of Architechs (AIA) Associated General Contractors (AGC) Change Order - Correct Answer-Written order to make a change in a contract pg. 7 professoraxe l Contract Documents and project manual - Correct AnswerCentral Location for bid documents, Contract Provisions, Technical specifications and agenda Scheduling Process - Correct Answer-the sequence of tasks activity Duration Contingency time Task time ranges Float time Scheduling Methods - Correct Answer-- Calendar scheduling - Bar Chart Scheduling - Critical path method Project Management - Correct Answer-- Budgets - Quality Control - Project Plans and specifications - resource Management pg. 8 professoraxe l Elements of a Business plan - Correct Answer-Cover Page, Executive summary, Company summary, Products and services, Market analysis, Marketing Stragety, Financle plan Renewal of License - Correct Answer-Must be renewed July 1st of each odd year at a cost of $160 Bond - Correct Answer-Risk Transfer mechanism Between a surety, the contractor, and the project owner. Bond Language - Correct Answer-Total Dollar amount required for the bond, Length of the bond, Requirments for notice of defect or lack of maintance, Bond enforcement Performance Bond - Correct Answer-Guarantees that the contractor will complete a contract within its time frame an conditions Payment Bond - Correct Answer-Guarantees Subcontractos and suppliers that they will be paid for work if they perform properly under the contract pg. 9 professoraxe l Maintenance Bond - Correct Answer-Guarantees that for a stated period, typically for one year, no defective workmanship or material will appear in the completed project. Completion Bond - Correct Answer-Provides assurance to the financle backers of a construction project that it will be completed on time Fidelity Bond - Correct Answer-Covers business Owners for losses due to dishonest Acts by there employees Lien Bond - Correct Answer-Guarantees that liens cannot be placed against the owners property by contrators for payments of service Miller Act - Correct Answer-Requires contractors to post performance and payment bonds. Public Relations - Correct Answer-Join Local Trade Associations, Participate in local Non Profit initative, Volunteer for local leardership oppertunities, sponsor communnity events, Send press release to the local media, Hold an open House EMAIL ME: For help with report, Assignment, Essay and thesis writing. pg. 10 professoraxe l Effective Selling Skills - Correct Answer-Maintain Good Contact Be attentive Keep an open mind Dont interupt Ask clarifying questions Put yourself in the shoes of the other person Pay attention t body language Presentation materials - Correct Answer--Company info Sheet -Brochures -Business cards -Past customer Testimonials -Warranty information - Photographs of past projects Estimating process - Correct Answer-- Company resources and type of work - Site Considerations - Location and Cost Effectiveness