NASCLA Contractors Guide to Business,
Law, and Project Management 2025/2026
Exam Questions and Answers | 100%
Solved
When setting up a business, the ________ is the simplest form of doing
business.
1. Sole Proprietorship
2. Partnership
3. Corporation
4. S-Corpotation - 🧠 ANSWER ✔✔1. Sole Proprietorship (BM 2-1)
Which of the following is not a primary element of a contract?
1. Offer
2. Deliberation
3. Acceptance
4. Consideration - 🧠 ANSWER ✔✔2. Deliberation (BM 8-1)
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
1
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,N.C. franchise tax is based on a rate of:
1. $1.50/$1000
2. $2.25/$1000
3. $3.70/$1000
4. $4.20/$1000 - 🧠 ANSWER ✔✔1. $1.50/$1000 (BM 15-7)
The 4 M's of planning don't include:
1. Materials
2. Manpower
3. Market Survey
4. Machinery - 🧠 ANSWER ✔✔3. Market Survey (BM)
People exempt from being paid overtime par are not:
1. Administrative
2. Sales
3. Paraprofessional
4. Management - 🧠 ANSWER ✔✔3. Paraprofessional (BM 11-5)
The disadvantages of a Sole Proprietorship is/are:
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
2
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,1. Unlimited personal Liability
2. Dissolution of the business in the event of owner's death
3. Less available capital
4. All the above - 🧠 ANSWER ✔✔4. All the above (BM 2-1)
Which of the following types of insurance should be secured?
1. Worker's Compensation
2. Motor Vehicle
3. General Liability
4. All the above - 🧠 ANSWER ✔✔4. All the above (BM 4-2)
Which of the following is not listed as a base type of bond?
1. Bid Bond
2. Performance Bond
3. Surety Bond
4. Payment Bond - 🧠 ANSWER ✔✔3. Surety Bond (BM 4-7)
On the balance sheet, assets equal:
1. Liabilities
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
3
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, 2. Owner Equity
3. Liabilities + Owner Equity
4. Owner's Equity Minus Liabilities - 🧠 ANSWER ✔✔3. Liabilities + Owner
Equity (BM 14-3)
New companies are assigned an initial rate of ____ for unemployment
insurance.
1. 1.5%
2. 1.2%
3. 3.7%
4. 4.2% - 🧠 ANSWER ✔✔2. 1.2% (BM)
An Employer with 5 employees is not required to display the OSHA poster.
1. True
2. False - 🧠 ANSWER ✔✔2. False (BM 12-1)
Which of the following are not a part of company overhead?
1. Office Salaries
2. Accounting & Legal Fees
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
4
PRIVACY STATEMENT. ALL RIGHTS RESERVED
Law, and Project Management 2025/2026
Exam Questions and Answers | 100%
Solved
When setting up a business, the ________ is the simplest form of doing
business.
1. Sole Proprietorship
2. Partnership
3. Corporation
4. S-Corpotation - 🧠 ANSWER ✔✔1. Sole Proprietorship (BM 2-1)
Which of the following is not a primary element of a contract?
1. Offer
2. Deliberation
3. Acceptance
4. Consideration - 🧠 ANSWER ✔✔2. Deliberation (BM 8-1)
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
1
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,N.C. franchise tax is based on a rate of:
1. $1.50/$1000
2. $2.25/$1000
3. $3.70/$1000
4. $4.20/$1000 - 🧠 ANSWER ✔✔1. $1.50/$1000 (BM 15-7)
The 4 M's of planning don't include:
1. Materials
2. Manpower
3. Market Survey
4. Machinery - 🧠 ANSWER ✔✔3. Market Survey (BM)
People exempt from being paid overtime par are not:
1. Administrative
2. Sales
3. Paraprofessional
4. Management - 🧠 ANSWER ✔✔3. Paraprofessional (BM 11-5)
The disadvantages of a Sole Proprietorship is/are:
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
2
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,1. Unlimited personal Liability
2. Dissolution of the business in the event of owner's death
3. Less available capital
4. All the above - 🧠 ANSWER ✔✔4. All the above (BM 2-1)
Which of the following types of insurance should be secured?
1. Worker's Compensation
2. Motor Vehicle
3. General Liability
4. All the above - 🧠 ANSWER ✔✔4. All the above (BM 4-2)
Which of the following is not listed as a base type of bond?
1. Bid Bond
2. Performance Bond
3. Surety Bond
4. Payment Bond - 🧠 ANSWER ✔✔3. Surety Bond (BM 4-7)
On the balance sheet, assets equal:
1. Liabilities
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
3
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, 2. Owner Equity
3. Liabilities + Owner Equity
4. Owner's Equity Minus Liabilities - 🧠 ANSWER ✔✔3. Liabilities + Owner
Equity (BM 14-3)
New companies are assigned an initial rate of ____ for unemployment
insurance.
1. 1.5%
2. 1.2%
3. 3.7%
4. 4.2% - 🧠 ANSWER ✔✔2. 1.2% (BM)
An Employer with 5 employees is not required to display the OSHA poster.
1. True
2. False - 🧠 ANSWER ✔✔2. False (BM 12-1)
Which of the following are not a part of company overhead?
1. Office Salaries
2. Accounting & Legal Fees
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
4
PRIVACY STATEMENT. ALL RIGHTS RESERVED
