Michigan Builders Business/Law/Accounti ng Exam
Questions And Answers Verified 100% Correct
How much time is allotted to a licensee notifying them of an investigative conference? -
ANSWER 10 days
How much time is allotted to a residential builder to return sales person's license and for
sales person to return I.D. card by certified mail? - ANSWER 5 days
How much time does a licensee have to repay the construction lien fund in order to
avoid suspension of license? - ANSWER 90 days
Who issues subpoenas? - ANSWER Circuit court
What are the board's duties? - ANSWER Interpretation of licensure and aid in an
investigation
What does the board promulgate? - ANSWER rules
Who develops the licensing exam? - ANSWER The board
How long does a person have to renew their license after it expires without having to
retake the exam? - ANSWER 60 days
Within how long does a person have to apply for licensing after their license has expired
without having to take the exam again? - ANSWER 3 yrs
Which type of document is used for Fast Track projects? - ANSWER Letter of Intent
Which type of document is predominately used in residential construction that provides
a total amount for stated work? - ANSWER Lump Sum Contract
Which type of document relates to a specific job and includes a breakdown of each
unit? - ANSWER Unit Price Contract
Which type of document is used in Construction Management? - ANSWER Cost plus
fee contract
Which type of document is used when the scope of work is poorly defined? - ANSWER
Cost plus percentage of cost contract (Time and Materials)
What does ADA stand for? - ANSWER Americans with Disabilities Act
,What are the three main points of Act 227: Home Solicitation Sales Act? - ANSWER No
ID blockers, no false statements, cancellation period of 3 business days
Which type of business ownership is easy to establish but the owner is liable for all
debts? - ANSWER Sole Proprietorship
In which type of business ownership do two or more parties merge assets, credit,
equipment, and talent but both partners are liable for business debts of the other? -
ANSWER General Proprietorship
Which type of business ownership allows and individual to invest in a general
partnership but have no input to how the partnership is operated? - ANSWER Limited
Partnership
Which type of business ownership is a business type where-by one or more individuals
unite to form one entity? - ANSWER Corporation
Which type of business ownership has the benefits of being taxed as a partnership and
meets IRS requirements? - ANSWER S-Corporation
Which type of business ownership has less legal requirements and more tax and
economic benefits? - ANSWER Limited Liability Company (LLC)
Which dates should you avoid guaranteeing? - ANSWER Completion date
Which form is required to be completed within the first 3 days of employment? -
ANSWER I-9
What is the minimum wage? - ANSWER $8.50/hr
What is minimum training wage? - ANSWER $4.25/hr
How long is the training minimum wage valid for? - ANSWER 90 days
Which Act prohibits an employer from discriminating against an individual compensation
or other conditions because of religion, race, color, etc..? - ANSWER Elliot-Larsen Civil
Rights Act 453
What kind of contract is based on estimated costs plus percentages for overhead, time,
and materials? - ANSWER Cost plus fee
What instrument helps ensure the punch list and project are satisfactorily completed? -
ANSWER Retainage
, When is final payment due? - ANSWER Upon final inspection
Which Law prohibits discrimination based on race, color, religion, sex, etc.? - ANSWER
Federal Civil Rights Act 1964
Which law expanded the coverage of the Civil Rights Act to include affirmative action
and court ordered restraining orders? - ANSWER Equal Employment Opportunity Act
1972
Which law allows employees unpaid leave for certain reasons? - ANSWER The Family
Medical Leave Act
How many employees does an employers have to have in order for the Family Medical
Leave Act to pertain to them? - ANSWER 50
Which law provides a schedule for payment of wages and fringe benefits to employees?
- ANSWER Michigan Act 390 of 1978
Which act provides Federal Civil Rights protection to individuals with disabilities? -
ANSWER Americans with Disabilities Act (ADA)
Who enforces the ADA requirements? - ANSWER U.S. Department of Justice
What does BFD stand for? - ANSWER Barrier Free Design
What level of government enforces the BFD requirements? - ANSWER Local and State
Which type of document must be in writing and signed to indicate a sale between all
parties involved for sale of goods $1,000 or greater? - ANSWER Uniform Commercial
Contract
Who's contract do subcontractors use? - ANSWER General contractor's
What are changes that are up for bid? - ANSWER Addendums
What are addendums that have been bid and contracted for? - ANSWER Change
orders
What does AIA stand for? - ANSWER American Institute of Architects
What constitutes as lead free? - ANSWER <=0.2%
What is the maximum riser height? - ANSWER 8 1/4"
Questions And Answers Verified 100% Correct
How much time is allotted to a licensee notifying them of an investigative conference? -
ANSWER 10 days
How much time is allotted to a residential builder to return sales person's license and for
sales person to return I.D. card by certified mail? - ANSWER 5 days
How much time does a licensee have to repay the construction lien fund in order to
avoid suspension of license? - ANSWER 90 days
Who issues subpoenas? - ANSWER Circuit court
What are the board's duties? - ANSWER Interpretation of licensure and aid in an
investigation
What does the board promulgate? - ANSWER rules
Who develops the licensing exam? - ANSWER The board
How long does a person have to renew their license after it expires without having to
retake the exam? - ANSWER 60 days
Within how long does a person have to apply for licensing after their license has expired
without having to take the exam again? - ANSWER 3 yrs
Which type of document is used for Fast Track projects? - ANSWER Letter of Intent
Which type of document is predominately used in residential construction that provides
a total amount for stated work? - ANSWER Lump Sum Contract
Which type of document relates to a specific job and includes a breakdown of each
unit? - ANSWER Unit Price Contract
Which type of document is used in Construction Management? - ANSWER Cost plus
fee contract
Which type of document is used when the scope of work is poorly defined? - ANSWER
Cost plus percentage of cost contract (Time and Materials)
What does ADA stand for? - ANSWER Americans with Disabilities Act
,What are the three main points of Act 227: Home Solicitation Sales Act? - ANSWER No
ID blockers, no false statements, cancellation period of 3 business days
Which type of business ownership is easy to establish but the owner is liable for all
debts? - ANSWER Sole Proprietorship
In which type of business ownership do two or more parties merge assets, credit,
equipment, and talent but both partners are liable for business debts of the other? -
ANSWER General Proprietorship
Which type of business ownership allows and individual to invest in a general
partnership but have no input to how the partnership is operated? - ANSWER Limited
Partnership
Which type of business ownership is a business type where-by one or more individuals
unite to form one entity? - ANSWER Corporation
Which type of business ownership has the benefits of being taxed as a partnership and
meets IRS requirements? - ANSWER S-Corporation
Which type of business ownership has less legal requirements and more tax and
economic benefits? - ANSWER Limited Liability Company (LLC)
Which dates should you avoid guaranteeing? - ANSWER Completion date
Which form is required to be completed within the first 3 days of employment? -
ANSWER I-9
What is the minimum wage? - ANSWER $8.50/hr
What is minimum training wage? - ANSWER $4.25/hr
How long is the training minimum wage valid for? - ANSWER 90 days
Which Act prohibits an employer from discriminating against an individual compensation
or other conditions because of religion, race, color, etc..? - ANSWER Elliot-Larsen Civil
Rights Act 453
What kind of contract is based on estimated costs plus percentages for overhead, time,
and materials? - ANSWER Cost plus fee
What instrument helps ensure the punch list and project are satisfactorily completed? -
ANSWER Retainage
, When is final payment due? - ANSWER Upon final inspection
Which Law prohibits discrimination based on race, color, religion, sex, etc.? - ANSWER
Federal Civil Rights Act 1964
Which law expanded the coverage of the Civil Rights Act to include affirmative action
and court ordered restraining orders? - ANSWER Equal Employment Opportunity Act
1972
Which law allows employees unpaid leave for certain reasons? - ANSWER The Family
Medical Leave Act
How many employees does an employers have to have in order for the Family Medical
Leave Act to pertain to them? - ANSWER 50
Which law provides a schedule for payment of wages and fringe benefits to employees?
- ANSWER Michigan Act 390 of 1978
Which act provides Federal Civil Rights protection to individuals with disabilities? -
ANSWER Americans with Disabilities Act (ADA)
Who enforces the ADA requirements? - ANSWER U.S. Department of Justice
What does BFD stand for? - ANSWER Barrier Free Design
What level of government enforces the BFD requirements? - ANSWER Local and State
Which type of document must be in writing and signed to indicate a sale between all
parties involved for sale of goods $1,000 or greater? - ANSWER Uniform Commercial
Contract
Who's contract do subcontractors use? - ANSWER General contractor's
What are changes that are up for bid? - ANSWER Addendums
What are addendums that have been bid and contracted for? - ANSWER Change
orders
What does AIA stand for? - ANSWER American Institute of Architects
What constitutes as lead free? - ANSWER <=0.2%
What is the maximum riser height? - ANSWER 8 1/4"
