CEM 100 EXAM 1 QUESTIONS
WITH 100% CORRECT
ANSWERS
Where a contractor will decide to subcontract the materials takeoff to an outside firm,
the outside firms that perform this work are referred to as ___ firms - Answer-Quantity
surveyor
In computing average annual value of a piece of construction equipment based on the
straight line depreciation method, all of the below costs would be relevant for this
calculation except ___ - Answer-Operating cost
According to your textbook, ___, which may also be known as price fixing, involves an
arrangement between contractors to control the bid prices for a construction project, or
to divide up customers or market areas - Answer-bid rigging
In bidding a project, during the bidding period, it is not uncommon for the contractor to
find errors, inconsistencies, and missing information in the bidding documents. It is the
responsibility of the contractor to bring such imperfections to the attention of the AE or
owner, so that the suitable modifications might be made by the responsible party. The
contractor will typically submit a number of ___ to the AE during this time. The designer
will respond, to each ___. - Answer-Request for information (RFI)
According to your textbook, general overhead expenses for a construction firms are
typically no more than ___ of contractors annual business volume - Answer-10%
In contractor bidding, unethical practices in competitive bidding could include all of the
following except ___ - Answer-bid depositing
Concerning equipment costs for a project, a large crane must be moved on site to a
project and assembled for use. Costs such as these are independent of equipment
operating time and production and these are not. Therefore, usually included in
equipment hourly rates. These equipment expenses, termed ___ are separately
computed for inclusion in this estimate - Answer-mobilization cost
Statutory entity that combines the limited personal liability feature of a corporation and
the partnership feature of taxation at the owner level is termed a (an) - Answer-LLC
, Concerning business ownership for construction contracting firms in the US
approximately ____ are individual proprietorships - Answer-75%
Some of Americas largest construction projects including the Hoover Dam in Southern
Nevada, built by Six companies, have been constructed by this business ownership
from where the assets and other resources of two or more construction firms are
combined for a specific project - Answer-Joint Venture
A business ownership form that has the principal advantages of limited liability of its
owners, perpetual life of the company, relative ease of raising capital, the easy and
workable provision of multiple ownership and the economic benefit that owners pay
taxes only on profits (dividends) actually received is the ____ - Answer-Corporation
In the partnership method of business ownership, a partner that is liable for partnership
debts only up to the amount of their investments in the partnership would be termed a
___ - Answer-Limited partner
The ____ is not an enduring form of business ownership. Rather the ___ is a temporary
form of ownership whereby two or more companies unite and pool their resources,
assets, and skills to perform a single construction project and then go their separate
ways again following completion - Answer-Joint Venture
In a partnership, ____ exist when one party, called the principal, authorizes another who
is called the ___ to act for the former in certain types of defined business or commercial
transactions - Answer-Agency, Agent
According to your textbook, in the settlement of the debts of a partnership, ___ enjoy a
position of first priority - Answer-Outside creditors
Concerning establishing a partnership, state laws regarding partnerships are not entirely
consistent, although most states have adopted the ___ more or less verbatim - Answer-
Uniform Partnership Act
A stock palm that is a form of deferred compensation to those working fro the
corporation consisting of those working for the corporation investing in the stock of their
corporation, with these investments funded by tax-exempt contributions. This stock plan
termed a (an) ___ can be designed to accomplish different purposes, including
promoting a company growth by providing a new source of equity capital, providing
benefits for long term workers, allowing for the retirement of company owners,
accomplishing a change of company ownership, and retiring stock presently owned by
stockholders - Answer-Employee Stock Ownership plan (ESOP)
Concerning establishing a partnership, the contract between the partners is termed the
___ - Answer-Articles of Partnership
WITH 100% CORRECT
ANSWERS
Where a contractor will decide to subcontract the materials takeoff to an outside firm,
the outside firms that perform this work are referred to as ___ firms - Answer-Quantity
surveyor
In computing average annual value of a piece of construction equipment based on the
straight line depreciation method, all of the below costs would be relevant for this
calculation except ___ - Answer-Operating cost
According to your textbook, ___, which may also be known as price fixing, involves an
arrangement between contractors to control the bid prices for a construction project, or
to divide up customers or market areas - Answer-bid rigging
In bidding a project, during the bidding period, it is not uncommon for the contractor to
find errors, inconsistencies, and missing information in the bidding documents. It is the
responsibility of the contractor to bring such imperfections to the attention of the AE or
owner, so that the suitable modifications might be made by the responsible party. The
contractor will typically submit a number of ___ to the AE during this time. The designer
will respond, to each ___. - Answer-Request for information (RFI)
According to your textbook, general overhead expenses for a construction firms are
typically no more than ___ of contractors annual business volume - Answer-10%
In contractor bidding, unethical practices in competitive bidding could include all of the
following except ___ - Answer-bid depositing
Concerning equipment costs for a project, a large crane must be moved on site to a
project and assembled for use. Costs such as these are independent of equipment
operating time and production and these are not. Therefore, usually included in
equipment hourly rates. These equipment expenses, termed ___ are separately
computed for inclusion in this estimate - Answer-mobilization cost
Statutory entity that combines the limited personal liability feature of a corporation and
the partnership feature of taxation at the owner level is termed a (an) - Answer-LLC
, Concerning business ownership for construction contracting firms in the US
approximately ____ are individual proprietorships - Answer-75%
Some of Americas largest construction projects including the Hoover Dam in Southern
Nevada, built by Six companies, have been constructed by this business ownership
from where the assets and other resources of two or more construction firms are
combined for a specific project - Answer-Joint Venture
A business ownership form that has the principal advantages of limited liability of its
owners, perpetual life of the company, relative ease of raising capital, the easy and
workable provision of multiple ownership and the economic benefit that owners pay
taxes only on profits (dividends) actually received is the ____ - Answer-Corporation
In the partnership method of business ownership, a partner that is liable for partnership
debts only up to the amount of their investments in the partnership would be termed a
___ - Answer-Limited partner
The ____ is not an enduring form of business ownership. Rather the ___ is a temporary
form of ownership whereby two or more companies unite and pool their resources,
assets, and skills to perform a single construction project and then go their separate
ways again following completion - Answer-Joint Venture
In a partnership, ____ exist when one party, called the principal, authorizes another who
is called the ___ to act for the former in certain types of defined business or commercial
transactions - Answer-Agency, Agent
According to your textbook, in the settlement of the debts of a partnership, ___ enjoy a
position of first priority - Answer-Outside creditors
Concerning establishing a partnership, state laws regarding partnerships are not entirely
consistent, although most states have adopted the ___ more or less verbatim - Answer-
Uniform Partnership Act
A stock palm that is a form of deferred compensation to those working fro the
corporation consisting of those working for the corporation investing in the stock of their
corporation, with these investments funded by tax-exempt contributions. This stock plan
termed a (an) ___ can be designed to accomplish different purposes, including
promoting a company growth by providing a new source of equity capital, providing
benefits for long term workers, allowing for the retirement of company owners,
accomplishing a change of company ownership, and retiring stock presently owned by
stockholders - Answer-Employee Stock Ownership plan (ESOP)
Concerning establishing a partnership, the contract between the partners is termed the
___ - Answer-Articles of Partnership
