Arkansas NASCLA Business Law
Project Management 2025/2026 Exam
Questions with 100% Correct Answers |
Latest Update
Which of the following forms of business ownership is least regulated? - 🧠
ANSWER ✔✔Sole Proprietor
Under which form of business organization are all investors fully liable for
all debts of the business? - 🧠 ANSWER ✔✔Partnership
What business organization will an owner choose when looking to gain
maximum protection from personal liability? - 🧠 ANSWER ✔✔S Corporation
What is the worst possible error in estimating? - 🧠 ANSWER ✔✔Leaving
something out
The paperwork related to purchase orders, credit card receipts, and so on
is referred to as - 🧠 ANSWER ✔✔Source documents
Which of the following documents reports after-expenses earnings? - 🧠
ANSWER ✔✔Income statement
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
1
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,What is the term used for the method of allocating the cost of an asset over
its useful life? - 🧠 ANSWER ✔✔Depreciation
What is the number of hours in a defined Fair Labor Standards Act (FLSA)
workweek? - 🧠 ANSWER ✔✔168 hours
Which of the following taxes is deducted (withheld) solely from employees'
wages? - 🧠 ANSWER ✔✔State income tax
What is a form W-3? - 🧠 ANSWER ✔✔Employer's summary of W-2s issued
to employees
The State Employment Commission requires that all payroll records be
maintained for - 🧠 ANSWER ✔✔4 years
What employment tax is paid solely by the employer? - 🧠 ANSWER
✔✔Federal Unemployment Tax (FUTA)
How long must federal employment tax records be kept? - 🧠 ANSWER
✔✔4 years
One useful outcome of a job cost analysis is to - 🧠 ANSWER ✔✔Establish
a basis for future estimates
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
2
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,Which of the following is NOT a company overhead cost? - 🧠 ANSWER
✔✔Bonds
Which of the following is a project overhead cost? - 🧠 ANSWER
✔✔Construction loan
What project costs to not need to be estimated? - 🧠 ANSWER
✔✔Allowances
Which estimating method is most often used when materials and labor are
hard to determine? - 🧠 ANSWER ✔✔Unit price
All local contractors should expect their material costs to be similar
because - 🧠 ANSWER ✔✔The suppliers must be competitive
What information do project documents ALWAYS provide? - 🧠 ANSWER
✔✔Basis for the bid
What is a contract? - 🧠 ANSWER ✔✔A legally binding mutual agreement
between parties
What action is essential before signing a contract? - 🧠 ANSWER ✔✔Read
and understand the contract
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
3
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, Which of the following is an established guideline for contracts? - 🧠
ANSWER ✔✔Written agreements prevail over oral agreements
Which contract document(s) MUST be signed by both the owner and the
contractor? - 🧠 ANSWER ✔✔The Standard Form of Agreement
What type of contract assigns the prime contractor responsibility for
developing the entire project? - 🧠 ANSWER ✔✔Turn Key
The person most responsible for complying with all state and federal
regulations relating to a construction project is the - 🧠 ANSWER ✔✔The
Contractor
What type of contract provides for starting a project before all plans are
complete? - 🧠 ANSWER ✔✔Fast Track Construction
The owner disputes a claim filed by the contractor for additional money and
the claim is not safety related. What is the proper course of action by the
contractor? - 🧠 ANSWER ✔✔The work continues
The general rule for interpreting an ambiguous provision in a contract is? -
🧠 ANSWER ✔✔It is interpreted AGAINST the party who wrote it
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
4
PRIVACY STATEMENT. ALL RIGHTS RESERVED
Project Management 2025/2026 Exam
Questions with 100% Correct Answers |
Latest Update
Which of the following forms of business ownership is least regulated? - 🧠
ANSWER ✔✔Sole Proprietor
Under which form of business organization are all investors fully liable for
all debts of the business? - 🧠 ANSWER ✔✔Partnership
What business organization will an owner choose when looking to gain
maximum protection from personal liability? - 🧠 ANSWER ✔✔S Corporation
What is the worst possible error in estimating? - 🧠 ANSWER ✔✔Leaving
something out
The paperwork related to purchase orders, credit card receipts, and so on
is referred to as - 🧠 ANSWER ✔✔Source documents
Which of the following documents reports after-expenses earnings? - 🧠
ANSWER ✔✔Income statement
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
1
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,What is the term used for the method of allocating the cost of an asset over
its useful life? - 🧠 ANSWER ✔✔Depreciation
What is the number of hours in a defined Fair Labor Standards Act (FLSA)
workweek? - 🧠 ANSWER ✔✔168 hours
Which of the following taxes is deducted (withheld) solely from employees'
wages? - 🧠 ANSWER ✔✔State income tax
What is a form W-3? - 🧠 ANSWER ✔✔Employer's summary of W-2s issued
to employees
The State Employment Commission requires that all payroll records be
maintained for - 🧠 ANSWER ✔✔4 years
What employment tax is paid solely by the employer? - 🧠 ANSWER
✔✔Federal Unemployment Tax (FUTA)
How long must federal employment tax records be kept? - 🧠 ANSWER
✔✔4 years
One useful outcome of a job cost analysis is to - 🧠 ANSWER ✔✔Establish
a basis for future estimates
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
2
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,Which of the following is NOT a company overhead cost? - 🧠 ANSWER
✔✔Bonds
Which of the following is a project overhead cost? - 🧠 ANSWER
✔✔Construction loan
What project costs to not need to be estimated? - 🧠 ANSWER
✔✔Allowances
Which estimating method is most often used when materials and labor are
hard to determine? - 🧠 ANSWER ✔✔Unit price
All local contractors should expect their material costs to be similar
because - 🧠 ANSWER ✔✔The suppliers must be competitive
What information do project documents ALWAYS provide? - 🧠 ANSWER
✔✔Basis for the bid
What is a contract? - 🧠 ANSWER ✔✔A legally binding mutual agreement
between parties
What action is essential before signing a contract? - 🧠 ANSWER ✔✔Read
and understand the contract
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
3
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, Which of the following is an established guideline for contracts? - 🧠
ANSWER ✔✔Written agreements prevail over oral agreements
Which contract document(s) MUST be signed by both the owner and the
contractor? - 🧠 ANSWER ✔✔The Standard Form of Agreement
What type of contract assigns the prime contractor responsibility for
developing the entire project? - 🧠 ANSWER ✔✔Turn Key
The person most responsible for complying with all state and federal
regulations relating to a construction project is the - 🧠 ANSWER ✔✔The
Contractor
What type of contract provides for starting a project before all plans are
complete? - 🧠 ANSWER ✔✔Fast Track Construction
The owner disputes a claim filed by the contractor for additional money and
the claim is not safety related. What is the proper course of action by the
contractor? - 🧠 ANSWER ✔✔The work continues
The general rule for interpreting an ambiguous provision in a contract is? -
🧠 ANSWER ✔✔It is interpreted AGAINST the party who wrote it
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
4
PRIVACY STATEMENT. ALL RIGHTS RESERVED
