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CM 4211 Final Review Questions and
Correct Answers/ Latest Update / Already
Graded
T/F: There is a strong correlation between economics prosperity and
high levels of construction activities.
Ans: True
T/F: A subcontract is a contractor working under the prime contractor
to do some phase of the construction onsite.
Ans: True
T/F: A prime contract is one that always involves the prime contractor
Ans: True
T/F: The four broad categories of construction are residential,
commercial, industrial, and heavy highway civil.
Ans: False
Which one of the following contracts is more likely a bid contract as
opposed to a negotiated one?
All rights reserved © 2025/ 2026 |
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• Cost plus percentage fee
• Cost plus fixed fee
• Cost plus incentive fee
• Guaranteed maximum price
• Lump sum
Ans: Lump Sum
Which one of the following is not an advantage of using pre-
engineered metal building?
• Speed of Construction
• Design Flexibility
• Reduced Liability Exposure
• Minimal Maintenance
• Relative Ease of Future Expansion
Ans: Reduced Liability Exposure
A Proprietorship is:
• Simplest Form of Business
• Always Owned by One Person
• Business Where All Risks are Assumed by its Owner
All rights reserved © 2025/ 2026 |
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• All of the Above
• A, C, not B
Ans: All of the above
"LLC" stands for:
• Louisiana Liability Company
• Limited Liability Company
• Louisiana Limited Corporation
• Louisiana Limited Company
• None of the Above
Ans: Limited Liability Company
Which one of the following is not a characteristic of a corporation?
• Limited Liability of its Owners
• Perpetual Life of Company
• Ease of Raising Capital
• Decentralized Management
• Transferability of Ownership
Ans: Decentralized Management
All rights reserved © 2025/ 2026 |
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A construction manager may be required to be licensed:
• As an Architect
• As an Engineer
• As a Contractor
• None of the Above
Ans: None of the above
T/F: A partnership is an association of two or more entities to carry on a
business for mutual profit
Ans: True
T/F: A partnership agreement must be in writing
Ans: False
T/F: A general partner is an agent of the partnership
Ans: True
T/F: In a dissolution of a partnership, a commercial lender gets paid
before a partner lender
All rights reserved © 2025/ 2026 |
CM 4211 Final Review Questions and
Correct Answers/ Latest Update / Already
Graded
T/F: There is a strong correlation between economics prosperity and
high levels of construction activities.
Ans: True
T/F: A subcontract is a contractor working under the prime contractor
to do some phase of the construction onsite.
Ans: True
T/F: A prime contract is one that always involves the prime contractor
Ans: True
T/F: The four broad categories of construction are residential,
commercial, industrial, and heavy highway civil.
Ans: False
Which one of the following contracts is more likely a bid contract as
opposed to a negotiated one?
All rights reserved © 2025/ 2026 |
, Page |2
• Cost plus percentage fee
• Cost plus fixed fee
• Cost plus incentive fee
• Guaranteed maximum price
• Lump sum
Ans: Lump Sum
Which one of the following is not an advantage of using pre-
engineered metal building?
• Speed of Construction
• Design Flexibility
• Reduced Liability Exposure
• Minimal Maintenance
• Relative Ease of Future Expansion
Ans: Reduced Liability Exposure
A Proprietorship is:
• Simplest Form of Business
• Always Owned by One Person
• Business Where All Risks are Assumed by its Owner
All rights reserved © 2025/ 2026 |
, Page |3
• All of the Above
• A, C, not B
Ans: All of the above
"LLC" stands for:
• Louisiana Liability Company
• Limited Liability Company
• Louisiana Limited Corporation
• Louisiana Limited Company
• None of the Above
Ans: Limited Liability Company
Which one of the following is not a characteristic of a corporation?
• Limited Liability of its Owners
• Perpetual Life of Company
• Ease of Raising Capital
• Decentralized Management
• Transferability of Ownership
Ans: Decentralized Management
All rights reserved © 2025/ 2026 |
, Page |4
A construction manager may be required to be licensed:
• As an Architect
• As an Engineer
• As a Contractor
• None of the Above
Ans: None of the above
T/F: A partnership is an association of two or more entities to carry on a
business for mutual profit
Ans: True
T/F: A partnership agreement must be in writing
Ans: False
T/F: A general partner is an agent of the partnership
Ans: True
T/F: In a dissolution of a partnership, a commercial lender gets paid
before a partner lender
All rights reserved © 2025/ 2026 |
