NASCLA CONTRACTORS GUIDE QUESTIONS AND
ANSWERS
market analysis - CORRECT ANSWER✅✅✅major competitors
Financial Plan - CORRECT ANSWER✅✅✅projection
Advantage of a Sole Proprietorship - CORRECT ANSWER✅✅✅Freedom in decision-
making process
Disadvantage of a Sole Proprietorship - CORRECT ANSWER✅✅✅Unlimited personal
liability
Partnership - CORRECT ANSWER✅✅✅each partner expects to share in the profits and
losses of the business.
Two types of partnerships- General and limited
Disadvantages of a General Partnership - CORRECT ANSWER✅✅✅Unlimited personal
liability of general partners.
Partnership dissolves in the event of the death of a general partner.
Purpose of Licensing - CORRECT ANSWER✅✅✅A major purpose of licensing is to
protect the health, safety, and welfare of the public
VA Board for Contractors - CORRECT ANSWER✅✅✅7 licensed contractor members
Licensing Requirements: Exemptions - CORRECT ANSWER✅✅✅Any material supplier
Class A - CORRECT ANSWER✅✅✅Single contract - $120,000 or more
12-month - $750,000 or more
, License classes are determined by - CORRECT ANSWER✅✅✅Net worth
Class A
Class B - CORRECT ANSWER✅✅✅$45,000
$15,000
License Renewals - CORRECT ANSWER✅✅✅license expire two years
must file renewal form
within 30 days of the license expiration
fees are not received within 30 days
must reinstate the license
Changes - CORRECT ANSWER✅✅✅change of designated employee 90 days
change of a business/trade name 30 days
change of address 30 days
Prohibited act - CORRECT ANSWER✅✅✅Failure to maintain all documents relating to
contract 5 years
Recovery Fund - CORRECT ANSWER✅✅✅to homeowners
per claimant $20,000
per contractor $40,000
$25 assessment
minimum balance set at $400,000
If the balance of the fund falls below
assessment will not exceed $50
ANSWERS
market analysis - CORRECT ANSWER✅✅✅major competitors
Financial Plan - CORRECT ANSWER✅✅✅projection
Advantage of a Sole Proprietorship - CORRECT ANSWER✅✅✅Freedom in decision-
making process
Disadvantage of a Sole Proprietorship - CORRECT ANSWER✅✅✅Unlimited personal
liability
Partnership - CORRECT ANSWER✅✅✅each partner expects to share in the profits and
losses of the business.
Two types of partnerships- General and limited
Disadvantages of a General Partnership - CORRECT ANSWER✅✅✅Unlimited personal
liability of general partners.
Partnership dissolves in the event of the death of a general partner.
Purpose of Licensing - CORRECT ANSWER✅✅✅A major purpose of licensing is to
protect the health, safety, and welfare of the public
VA Board for Contractors - CORRECT ANSWER✅✅✅7 licensed contractor members
Licensing Requirements: Exemptions - CORRECT ANSWER✅✅✅Any material supplier
Class A - CORRECT ANSWER✅✅✅Single contract - $120,000 or more
12-month - $750,000 or more
, License classes are determined by - CORRECT ANSWER✅✅✅Net worth
Class A
Class B - CORRECT ANSWER✅✅✅$45,000
$15,000
License Renewals - CORRECT ANSWER✅✅✅license expire two years
must file renewal form
within 30 days of the license expiration
fees are not received within 30 days
must reinstate the license
Changes - CORRECT ANSWER✅✅✅change of designated employee 90 days
change of a business/trade name 30 days
change of address 30 days
Prohibited act - CORRECT ANSWER✅✅✅Failure to maintain all documents relating to
contract 5 years
Recovery Fund - CORRECT ANSWER✅✅✅to homeowners
per claimant $20,000
per contractor $40,000
$25 assessment
minimum balance set at $400,000
If the balance of the fund falls below
assessment will not exceed $50
