Contractor's Exam Part 1
Questions and Answers 100%
Solved
FOBAfreightAprepaidArequiresA__________AtoApayAforAshippingAcharges.A
A.AContractorA
B.ABuyerA
C.ASellerA
D.ASubcontractorA-AAnswerASellerA(SeeAsectionA14,Ap.A12)
AccordingAtoAtheAStateAofASouthACarolina,AwhichAofAtheAfollowingAcanAbeAclassifiedAasAanAentity?A
A.ASoleAproprietorshipAB.APartnershipAC.ALimitedAliabilityAcompanyAD.AAllAofAtheAaboveAareArecogni
zedAasAanAentityA-AAnswerAD.AAllAofAtheAabove
SeeAAppendixAEAforAdefinition
WhichAofAtheAfollowingAisAnotAaAmemberAofAtheAsupervisory?AA.AForemanAB.AmaterialsAexpediterA
C.AOwner'sArepresentativeAD.AProjectAmanagerA-AAnswerAD.AProjectAManager.ASeeAsectionA9,Apg.A7
__________AschedulingAconsistsAofAdates,AdeliveryAdates,ApaymentAscheduleAandAvacations.AItAi
sAaAsimplifiedAmethod.AA.ACalendarAB.ABarAchartAC.AGanttAD.ANoneAofAtheAaboveA-AAnswerAAA9-3
WhenAworkingAinAdwellingAthatAwasAbuiltApriorAtoA1978,AtheAemployerAisAtoAprovideAeachAoccupan
tAwithAaApamphletA____________titled.AA.AProtectAyourAfamilyAfromAleadAinAyourAhomeAB.APr
otectAyourAlovedAonesAfromAleadAinAyourAhomeAC.AProtectAyourAfamilyAandAyourAfriendsAfromAlea
dAinAyourAhomeAD.APamphletsAareAnotArequiredA-AAnswerAAA12-15
TheASalesAandAUseAtaxAinASouthACarolinaAis_________?AA.A4AB.A6AC.A6.5AD.A7A-AAnswerABA15-
7
WhoApaysAintoAaAworker'sAunemploymentAcompensation?AA.APropertyAownerAB.ABuildingAcontractorA
C.AEmployerAD.AEmployeeA-AAnswerACA11-13
,AAlumpAsumAcontractAonAaAprojectAhasAaAtotalAcontactApriceAofA$260,000.ARetainageAhasAbeenAhel
dAbackAatA10%.ATheAcontractorAhasAreceivedAprogressApaymentsAforA75%AofAtheAproject.ATheAcont
ractorAsubmitsAaArequestAforAfinalApaymentAwhichAshouldAbeA___________________A.AA.AM
oreAthanA$80,000AB.ALessAthanA$50,000AC.ABetweenA$50,001AandA$60,000AD.ABetweenA$60,001Aand
A$70,000A-AAnswerAAA260000AxA.35
WhichAofAtheAfollowingAisANOTAaAkeyAcharacteristicAofAaAsoleAproprietorship?AA.AYouAownAtheAass
etsAofAtheAcompanyAB.ABusinessAexpensesAandApersonalAincomeAareAnotAseparatedAC.AYouAbearAp
ersonalAliabilityAD.AYourAnetAincomeAisAreportedAasAordinaryAincomeA-AAnswerABA2-1
WhatAisAtheAquickAratioA(orAacidAtestAratio)AforAaAcompanyAthatAhasAcurrentAassetsAofA$28,000,Ain
ventoryAofA$4,000,AandAcurrentAliabilitiesAofA$6,000?AA.A4/1AB.A1/4AC.A7/1AD.A1/7A-AAnswerAAA14-
7
QuickAratioA=ACurrentAassetsA-AInventoryA/ACurrentAliabilitiesA($28,000A-
A$4,000)A/A$6,000A=A$24,000A/A$6,000A=A4A/A1
AnAEAPAisArequiredAtoAbeAinAwritingAforA________employeesAorAmore.AA.A2AB.A8AC.A10AD.A11
A-AAnswerADA12-3
WhoApaysAintoAFUTA?AA.APropertyAownerAB.ABuildingAcontractorAC.AEmployerAD.AEmployeeA-
AAnswerACA15-4,A15-5
TheANoticeAandAOpportunityAtoACureANonresidentialAConstructionADefectsAActArequiresAclaimantsAtoA
serveAaAnoticeAofAclaimAonAtheAcontractor,Asubcontractor,Asupplier,AorAdesignAprofessionalA_____
______AdaysApriorAtoAfilingAaAcourtAaction.AA.A90AB.A100AC.A60AD.A30A-AAnswerAAA3-8
WhatAisAtheApurposeAofAjust-in-
timeAdeliveries?AA.AProfitAlowAandAvandalismAhighAB.AProfitAlowAandAlowAriskAofAvandalismAC.APr
ofitAhighAandAvandalismAhighAD.AProfitAhighAandAlowAriskAofAvandalismA-AAnswerADA9-9
EthicsAhasAtoAdoAwithAallAbutAwhichAofAtheAfollowing?AA.AShowingAupAtoAtheAjobAonAtimeAB.ADoA
whatAyouAsayAyouAareAgoingAtoAdoAC.ADoingAtheArightAthingAD.ALyingAtoAtheAcustomerA-
AAnswerADA5-2
, WhichAofAtheAfollowingAisAnotAaArewardAforAowningAanAenterprise?AA.AFlexibilityAofAtimeAB.Amakin
gAdecisionsAC.ABeingAyourAownAbossAD.AmanagingAcashAflowA-AAnswerADA1-2
WhichAofAtheAfollowingAisAnotAcoveredAunderAtheAADA?AA.AAIDSAB.ADrugAadditionAC.AAlcoholAaddict
ionAD.APaperAcutA-AAnswerADA11-7
IfAtheAprimaryAqualifyingApartyAforAaAfireAsprinklerAlicenseAisAterminated,AhowAlongAuntilAtheAboa
rdAneedsAtoAbeAnotified?AA.A15AdaysAB.A12AdaysAC.A20AdaysAD.A17AdaysA-
AAnswerAAAAppendixAE,A40-10-40A(D)
AAjobAisAestimatedAtoAcostA$1Amillion.AHowever,AtwoAcompaniesAhaveAaAcapAofA$500,000.ATheyAca
nAlegallyAdoAthisAjobAifAtheyA___________.AA.ADissolveAB.ABecomeAventureAcapitalistAC.AJointA
ventureAD.AItAisAanAillegalAactivityA-AAnswerACA2-6
TheAstandardAmarkupAinAtheAconstructionAindustryAis?AA.A10%AB.A15%AC.A18%AD.A11%A-
AAnswerABA7-7
WhichAisAnotAanAadvantageAofAaApartnership?AA.AFormationAisAeasilyAdoneAB.AMultipleAdecisionAma
kersAC.ADirectAprofitArewardsAD.ALargerAmanagementAbaseA-AAnswerABA2-2
_______AprohibitsAfiringAofAanAemployeeAwhoseApayAisAgarnishedAforApaymentAofAaAsingleAdeb
t.AA.AWageAGarnishmentALawAB.AServiceAcontactAactAC.AWalsh-HealyAActAD.ADavis-BaconAActA-
AAnswerAAA11-8
TheAmaximumAnumberAofAshareholdersApermittedAwithinAanASAcorporationAis?AA.A25AB.A50AC.A75A
D.A100A-AAnswerADA2-4
AAlawsuitAtoAforecloseAonAtheAlienAmustAbeAfiledAwithinA_____AmonthsAafterAtheAlienorAlastApro
videdAmaterialsAand/orAlaborAforAtheAconstructionAproject.A-AAnswerACA16-2
DelegatingAprovidesAforAallAbutAtheAfollowing?AA.AConcentrateAstrategicallyAB.ADevelopingAemployee
sAC.AIAcanAdoAitAallAD.AAccomplishAtasksA-AAnswerACA15-1,A5-2
Questions and Answers 100%
Solved
FOBAfreightAprepaidArequiresA__________AtoApayAforAshippingAcharges.A
A.AContractorA
B.ABuyerA
C.ASellerA
D.ASubcontractorA-AAnswerASellerA(SeeAsectionA14,Ap.A12)
AccordingAtoAtheAStateAofASouthACarolina,AwhichAofAtheAfollowingAcanAbeAclassifiedAasAanAentity?A
A.ASoleAproprietorshipAB.APartnershipAC.ALimitedAliabilityAcompanyAD.AAllAofAtheAaboveAareArecogni
zedAasAanAentityA-AAnswerAD.AAllAofAtheAabove
SeeAAppendixAEAforAdefinition
WhichAofAtheAfollowingAisAnotAaAmemberAofAtheAsupervisory?AA.AForemanAB.AmaterialsAexpediterA
C.AOwner'sArepresentativeAD.AProjectAmanagerA-AAnswerAD.AProjectAManager.ASeeAsectionA9,Apg.A7
__________AschedulingAconsistsAofAdates,AdeliveryAdates,ApaymentAscheduleAandAvacations.AItAi
sAaAsimplifiedAmethod.AA.ACalendarAB.ABarAchartAC.AGanttAD.ANoneAofAtheAaboveA-AAnswerAAA9-3
WhenAworkingAinAdwellingAthatAwasAbuiltApriorAtoA1978,AtheAemployerAisAtoAprovideAeachAoccupan
tAwithAaApamphletA____________titled.AA.AProtectAyourAfamilyAfromAleadAinAyourAhomeAB.APr
otectAyourAlovedAonesAfromAleadAinAyourAhomeAC.AProtectAyourAfamilyAandAyourAfriendsAfromAlea
dAinAyourAhomeAD.APamphletsAareAnotArequiredA-AAnswerAAA12-15
TheASalesAandAUseAtaxAinASouthACarolinaAis_________?AA.A4AB.A6AC.A6.5AD.A7A-AAnswerABA15-
7
WhoApaysAintoAaAworker'sAunemploymentAcompensation?AA.APropertyAownerAB.ABuildingAcontractorA
C.AEmployerAD.AEmployeeA-AAnswerACA11-13
,AAlumpAsumAcontractAonAaAprojectAhasAaAtotalAcontactApriceAofA$260,000.ARetainageAhasAbeenAhel
dAbackAatA10%.ATheAcontractorAhasAreceivedAprogressApaymentsAforA75%AofAtheAproject.ATheAcont
ractorAsubmitsAaArequestAforAfinalApaymentAwhichAshouldAbeA___________________A.AA.AM
oreAthanA$80,000AB.ALessAthanA$50,000AC.ABetweenA$50,001AandA$60,000AD.ABetweenA$60,001Aand
A$70,000A-AAnswerAAA260000AxA.35
WhichAofAtheAfollowingAisANOTAaAkeyAcharacteristicAofAaAsoleAproprietorship?AA.AYouAownAtheAass
etsAofAtheAcompanyAB.ABusinessAexpensesAandApersonalAincomeAareAnotAseparatedAC.AYouAbearAp
ersonalAliabilityAD.AYourAnetAincomeAisAreportedAasAordinaryAincomeA-AAnswerABA2-1
WhatAisAtheAquickAratioA(orAacidAtestAratio)AforAaAcompanyAthatAhasAcurrentAassetsAofA$28,000,Ain
ventoryAofA$4,000,AandAcurrentAliabilitiesAofA$6,000?AA.A4/1AB.A1/4AC.A7/1AD.A1/7A-AAnswerAAA14-
7
QuickAratioA=ACurrentAassetsA-AInventoryA/ACurrentAliabilitiesA($28,000A-
A$4,000)A/A$6,000A=A$24,000A/A$6,000A=A4A/A1
AnAEAPAisArequiredAtoAbeAinAwritingAforA________employeesAorAmore.AA.A2AB.A8AC.A10AD.A11
A-AAnswerADA12-3
WhoApaysAintoAFUTA?AA.APropertyAownerAB.ABuildingAcontractorAC.AEmployerAD.AEmployeeA-
AAnswerACA15-4,A15-5
TheANoticeAandAOpportunityAtoACureANonresidentialAConstructionADefectsAActArequiresAclaimantsAtoA
serveAaAnoticeAofAclaimAonAtheAcontractor,Asubcontractor,Asupplier,AorAdesignAprofessionalA_____
______AdaysApriorAtoAfilingAaAcourtAaction.AA.A90AB.A100AC.A60AD.A30A-AAnswerAAA3-8
WhatAisAtheApurposeAofAjust-in-
timeAdeliveries?AA.AProfitAlowAandAvandalismAhighAB.AProfitAlowAandAlowAriskAofAvandalismAC.APr
ofitAhighAandAvandalismAhighAD.AProfitAhighAandAlowAriskAofAvandalismA-AAnswerADA9-9
EthicsAhasAtoAdoAwithAallAbutAwhichAofAtheAfollowing?AA.AShowingAupAtoAtheAjobAonAtimeAB.ADoA
whatAyouAsayAyouAareAgoingAtoAdoAC.ADoingAtheArightAthingAD.ALyingAtoAtheAcustomerA-
AAnswerADA5-2
, WhichAofAtheAfollowingAisAnotAaArewardAforAowningAanAenterprise?AA.AFlexibilityAofAtimeAB.Amakin
gAdecisionsAC.ABeingAyourAownAbossAD.AmanagingAcashAflowA-AAnswerADA1-2
WhichAofAtheAfollowingAisAnotAcoveredAunderAtheAADA?AA.AAIDSAB.ADrugAadditionAC.AAlcoholAaddict
ionAD.APaperAcutA-AAnswerADA11-7
IfAtheAprimaryAqualifyingApartyAforAaAfireAsprinklerAlicenseAisAterminated,AhowAlongAuntilAtheAboa
rdAneedsAtoAbeAnotified?AA.A15AdaysAB.A12AdaysAC.A20AdaysAD.A17AdaysA-
AAnswerAAAAppendixAE,A40-10-40A(D)
AAjobAisAestimatedAtoAcostA$1Amillion.AHowever,AtwoAcompaniesAhaveAaAcapAofA$500,000.ATheyAca
nAlegallyAdoAthisAjobAifAtheyA___________.AA.ADissolveAB.ABecomeAventureAcapitalistAC.AJointA
ventureAD.AItAisAanAillegalAactivityA-AAnswerACA2-6
TheAstandardAmarkupAinAtheAconstructionAindustryAis?AA.A10%AB.A15%AC.A18%AD.A11%A-
AAnswerABA7-7
WhichAisAnotAanAadvantageAofAaApartnership?AA.AFormationAisAeasilyAdoneAB.AMultipleAdecisionAma
kersAC.ADirectAprofitArewardsAD.ALargerAmanagementAbaseA-AAnswerABA2-2
_______AprohibitsAfiringAofAanAemployeeAwhoseApayAisAgarnishedAforApaymentAofAaAsingleAdeb
t.AA.AWageAGarnishmentALawAB.AServiceAcontactAactAC.AWalsh-HealyAActAD.ADavis-BaconAActA-
AAnswerAAA11-8
TheAmaximumAnumberAofAshareholdersApermittedAwithinAanASAcorporationAis?AA.A25AB.A50AC.A75A
D.A100A-AAnswerADA2-4
AAlawsuitAtoAforecloseAonAtheAlienAmustAbeAfiledAwithinA_____AmonthsAafterAtheAlienorAlastApro
videdAmaterialsAand/orAlaborAforAtheAconstructionAproject.A-AAnswerACA16-2
DelegatingAprovidesAforAallAbutAtheAfollowing?AA.AConcentrateAstrategicallyAB.ADevelopingAemployee
sAC.AIAcanAdoAitAallAD.AAccomplishAtasksA-AAnswerACA15-1,A5-2
