CONTRACTOR'S EXAM PART 1
QUESTIONS & VERIFIED ANSWERS
ALREADY GRADED A+
FOB freight prepaid requires __________ to pay for shipping charges.
A. Contractor
B. Buyer
C. Seller
D. Subcontractor - Correct Answer ✔✔ Seller (See section 14, p. 12)
According to the State of South Carolina, which of the following can be classified as an entity? A.
Sole proprietorship B. Partnership C. Limited liability company D. All of the above are recognized
as an entity - Correct Answer ✔✔ D. All of the above
See Appendix E for definition
Which of the following is not a member of the supervisory? A. Foreman B. materials expediter
C. Owner's representative D. Project manager - Correct Answer ✔✔ D. Project Manager. See
section 9, pg. 7
__________ scheduling consists of dates, delivery dates, payment schedule and vacations. It is a
simplified method. A. Calendar B. Bar chart C. Gantt D. None of the above - Correct Answer ✔✔
A 9-3
When working in dwelling that was built prior to 1978, the employer is to provide each
occupant with a pamphlet ____________titled. A. Protect your family from lead in your home
B. Protect your loved ones from lead in your home C. Protect your family and your friends from
lead in your home D. Pamphlets are not required - Correct Answer ✔✔ A 12-15
,The Sales and Use tax in South Carolina is_________? A. 4 B. 6 C. 6.5 D. 7 - Correct Answer ✔✔
B 15-7
Who pays into a worker's unemployment compensation? A. Property owner B. Building
contractor C. Employer D. Employee - Correct Answer ✔✔ C 11-13
A lump sum contract on a project has a total contact price of $260,000. Retainage has been held
back at 10%. The contractor has received progress payments for 75% of the project. The
contractor submits a request for final payment which should be ___________________ . A.
More than $80,000 B. Less than $50,000 C. Between $50,001 and $60,000 D. Between $60,001
and $70,000 - Correct Answer ✔✔ A 260000 x .35
Which of the following is NOT a key characteristic of a sole proprietorship? A. You own the
assets of the company B. Business expenses and personal income are not separated C. You bear
personal liability D. Your net income is reported as ordinary income - Correct Answer ✔✔ B 2-1
What is the quick ratio (or acid test ratio) for a company that has current assets of $28,000,
inventory of $4,000, and current liabilities of $6,000? A. 4/1 B. 1/4 C. 7/1 D. 1/7 - Correct
Answer ✔✔ A 14-7
Quick ratio = Current assets - Inventory / Current liabilities ($28,000 - $4,000) / $6,000 =
$24,000 / $6,000 =
An EAP is required to be in writing for ________employees or more. A. 2 B. 8 C. 10 D. 11 -
Correct Answer ✔✔ D 12-3
Who pays into FUTA? A. Property owner B. Building contractor C. Employer D. Employee -
Correct Answer ✔✔ C 15-4, 15-5
The Notice and Opportunity to Cure Nonresidential Construction Defects Act requires claimants
to serve a notice of claim on the contractor, subcontractor, supplier, or design professional
, ___________ days prior to filing a court action. A. 90 B. 100 C. 60 D. 30 - Correct Answer ✔✔ A
3-8
What is the purpose of just-in-time deliveries? A. Profit low and vandalism high B. Profit low and
low risk of vandalism C. Profit high and vandalism high D. Profit high and low risk of vandalism -
Correct Answer ✔✔ D 9-9
Ethics has to do with all but which of the following? A. Showing up to the job on time B. Do
what you say you are going to do C. Doing the right thing D. Lying to the customer - Correct
Answer ✔✔ D 5-2
Which of the following is not a reward for owning an enterprise? A. Flexibility of time B. making
decisions C. Being your own boss D. managing cash flow - Correct Answer ✔✔ D 1-2
Which of the following is not covered under the ADA? A. AIDS B. Drug addition C. Alcohol
addiction D. Paper cut - Correct Answer ✔✔ D 11-7
If the primary qualifying party for a fire sprinkler license is terminated, how long until the board
needs to be notified? A. 15 days B. 12 days C. 20 days D. 17 days - Correct Answer ✔✔ A
Appendix E, 40-10-40 (D)
A job is estimated to cost $1 million. However, two companies have a cap of $500,000. They can
legally do this job if they ___________. A. Dissolve B. Become venture capitalist C. Joint venture
D. It is an illegal activity - Correct Answer ✔✔ C 2-6
The standard markup in the construction industry is? A. 10% B. 15% C. 18% D. 11% - Correct
Answer ✔✔ B 7-7
Which is not an advantage of a partnership? A. Formation is easily done B. Multiple decision
makers C. Direct profit rewards D. Larger management base - Correct Answer ✔✔ B 2-2
QUESTIONS & VERIFIED ANSWERS
ALREADY GRADED A+
FOB freight prepaid requires __________ to pay for shipping charges.
A. Contractor
B. Buyer
C. Seller
D. Subcontractor - Correct Answer ✔✔ Seller (See section 14, p. 12)
According to the State of South Carolina, which of the following can be classified as an entity? A.
Sole proprietorship B. Partnership C. Limited liability company D. All of the above are recognized
as an entity - Correct Answer ✔✔ D. All of the above
See Appendix E for definition
Which of the following is not a member of the supervisory? A. Foreman B. materials expediter
C. Owner's representative D. Project manager - Correct Answer ✔✔ D. Project Manager. See
section 9, pg. 7
__________ scheduling consists of dates, delivery dates, payment schedule and vacations. It is a
simplified method. A. Calendar B. Bar chart C. Gantt D. None of the above - Correct Answer ✔✔
A 9-3
When working in dwelling that was built prior to 1978, the employer is to provide each
occupant with a pamphlet ____________titled. A. Protect your family from lead in your home
B. Protect your loved ones from lead in your home C. Protect your family and your friends from
lead in your home D. Pamphlets are not required - Correct Answer ✔✔ A 12-15
,The Sales and Use tax in South Carolina is_________? A. 4 B. 6 C. 6.5 D. 7 - Correct Answer ✔✔
B 15-7
Who pays into a worker's unemployment compensation? A. Property owner B. Building
contractor C. Employer D. Employee - Correct Answer ✔✔ C 11-13
A lump sum contract on a project has a total contact price of $260,000. Retainage has been held
back at 10%. The contractor has received progress payments for 75% of the project. The
contractor submits a request for final payment which should be ___________________ . A.
More than $80,000 B. Less than $50,000 C. Between $50,001 and $60,000 D. Between $60,001
and $70,000 - Correct Answer ✔✔ A 260000 x .35
Which of the following is NOT a key characteristic of a sole proprietorship? A. You own the
assets of the company B. Business expenses and personal income are not separated C. You bear
personal liability D. Your net income is reported as ordinary income - Correct Answer ✔✔ B 2-1
What is the quick ratio (or acid test ratio) for a company that has current assets of $28,000,
inventory of $4,000, and current liabilities of $6,000? A. 4/1 B. 1/4 C. 7/1 D. 1/7 - Correct
Answer ✔✔ A 14-7
Quick ratio = Current assets - Inventory / Current liabilities ($28,000 - $4,000) / $6,000 =
$24,000 / $6,000 =
An EAP is required to be in writing for ________employees or more. A. 2 B. 8 C. 10 D. 11 -
Correct Answer ✔✔ D 12-3
Who pays into FUTA? A. Property owner B. Building contractor C. Employer D. Employee -
Correct Answer ✔✔ C 15-4, 15-5
The Notice and Opportunity to Cure Nonresidential Construction Defects Act requires claimants
to serve a notice of claim on the contractor, subcontractor, supplier, or design professional
, ___________ days prior to filing a court action. A. 90 B. 100 C. 60 D. 30 - Correct Answer ✔✔ A
3-8
What is the purpose of just-in-time deliveries? A. Profit low and vandalism high B. Profit low and
low risk of vandalism C. Profit high and vandalism high D. Profit high and low risk of vandalism -
Correct Answer ✔✔ D 9-9
Ethics has to do with all but which of the following? A. Showing up to the job on time B. Do
what you say you are going to do C. Doing the right thing D. Lying to the customer - Correct
Answer ✔✔ D 5-2
Which of the following is not a reward for owning an enterprise? A. Flexibility of time B. making
decisions C. Being your own boss D. managing cash flow - Correct Answer ✔✔ D 1-2
Which of the following is not covered under the ADA? A. AIDS B. Drug addition C. Alcohol
addiction D. Paper cut - Correct Answer ✔✔ D 11-7
If the primary qualifying party for a fire sprinkler license is terminated, how long until the board
needs to be notified? A. 15 days B. 12 days C. 20 days D. 17 days - Correct Answer ✔✔ A
Appendix E, 40-10-40 (D)
A job is estimated to cost $1 million. However, two companies have a cap of $500,000. They can
legally do this job if they ___________. A. Dissolve B. Become venture capitalist C. Joint venture
D. It is an illegal activity - Correct Answer ✔✔ C 2-6
The standard markup in the construction industry is? A. 10% B. 15% C. 18% D. 11% - Correct
Answer ✔✔ B 7-7
Which is not an advantage of a partnership? A. Formation is easily done B. Multiple decision
makers C. Direct profit rewards D. Larger management base - Correct Answer ✔✔ B 2-2
