NASCLA Test 1 Exam Questions and Answers | Latest Update 2024/2025 | Graded A+

Loan Document 3. Investor Document 4. Benchmarking Tool 2. Select two standard components of a business plan: answer- 1. Marking Strategy 2. Executive Strategy 3. is the biggest drawback of a sole proprietorship.: answer- Unlimited Personal Liability 4. If you are a sole proprietor and complete work under a name that is not your NASCLA Test 1 Exam Questions and Answers | Latest Update 2024/2025 | Graded A+ 2 / 8 own, you would be required to file a with local or state government.: - Fictitious Name Certificate 5. You be held liable in a Partnership for the dealings/behavior of your partner if completed on behalf of your company.: Can 6. A crucial drawback of a is double taxation.: C Corporation 7. The person(s) in charge of a corporation is held responsible, to pay out of their pocket, for the bills still outstanding of that corporation.: False 8. The biggest benefit of creating a is that you avoid double taxation.: S Corporation 9. The benefit of have a is that Federal tax is only filed on earnings dispersed to its representatives.: Limited Liability Corporation 10. Form is mandatory to be assigned as an S Corporation.: Form 2553 11. Insurance enhances your protection from and theft.: Accidents 12. Insurance will protect you from accidents/loss associated to your belongings as well as the companies.: Property Insurance 13. Insurance will protect the structure being built and the materials at that location.: Builders' Risk 14. Builders Risk insurance will protect your personal belongings and materials if it is at the location.: False 3 / 8 15. A(n) will protect against movable machinery left at the location or while being transported.: Equipment Floater 16. will protect against accidents/damages to visitors or items the company does not own.: Commercial General Liability 17. The covers the cost on the premium for Workers Compensation.: - Employer 4 / 8 18. A bond promises the person building will complete the job for the amount quoted, will sign the agreement and will provide a and bond.: Bid Performance Payment 19. A bond promises that the job will be finished within the scope of the agreement.: Payment 20. The Miller Act calls for and bonds for all Federal projects costing more than $100,000.: Performance Payment 21. A bond promises to subcontractors and vendors they will be compensated for their efforts and materials.: Payment 22. A policy groups property and liability into one policy so that only one premium for both has to be paid.: Business Owner 23. An estimator has several aspects of a project to consider when deciding to place a bid. Select all that apply.: 1. Location 2. Risk 3. Resources 4. All of the above 24. A is not part of a bid.: Change Order 5 / 8 25. If you provide a bid and then have to go back and modify it before it is required, the modifications would be called a(n) .: Addendum 26. If you are a contractor and you collaborate with subcontractors who have not put in a proposal for a certain project in order to propose less, that would be an example of .: Bid Shopping 27. If several contractors collaborate in order to secure the job, this is an example of .: Bid Rigging 28. There are certain documents that are required for each job. Select all that apply.: 1. Drawings 2. Specifications 3. Contract 29. The Specifications document would show the that will be used during the project.: Materials 30. The method is thought to be the most precise method of estimating.: Quantity Take-off 31. Labor Burden is the expense associated with other benefits for employees other than their salary.: True 6 / 8 32. Workman's comp is an example of labor costs.: True 33. An employee's salary would be considered an example of Project Overhead.: False 34. Expenses associated with the everyday running of a business even when there is not an ongoing project are called .: Company Overhead 35. An official, required agreement involving more than one person is called a .: Contract 36. A contract is legal, however not recommended.: Oral 37. There are required parts to a contract: 4 38. When payment is not made in full but some money is released when certainparts of a project are finished, this is called .: Progress Payments 39. In order to make certain a job will be completed a is withheld.: Retainage 40. A(n) can certify a job being finished.: Architect, Engineer 41. Retainage is compensated before a project begins to signify the client is ready for construction to start.: False 42. If someone does not do the duties promised in the agreement it is known as a .: Breach of Contract