FLORIDA BUILDING CONTRACTOR
BUSINESS/FINANCE STUDY EXAM
QUESTIONS AND SOLUTIONS
57. Generally warranty found in construction contracts usually do not exceed:✔ansOne year
58. What is gross profit?✔ansSales minus cost of goods sold
59. When working in a hazardous area where do you obtain permits for that job?✔ansOSHA
60. If the contractor fails to pay subcontractors or material suppliers, the people who are owed money
may sue the ______ for payment, even if the contractor is paid in full.✔ansOwner
61. What does a balance sheet show?✔ansLiabilities, assets and net worth
62. When bidding, how should the contractor proceed if he/she finds incorrect specifications on a
design?✔ansrefrain from submitting the bid
63. A __________ represents a company's financial position on a specified date.✔ansBalance sheet
64. Assets are usually reported on the balance sheet at which amount?✔ansCost value
65. Which of the following is most important regarding the safety at a job site?✔ansContractor should
require the workers to use safety equipment
66. What is a cost management system and what does it do?✔ansIt gives a cost history to analyze labor
and material costs
67. Home improvement contracts have a 3-day notice of cancellation at the:✔ansSigning of the contract
, 68. Obligations (amounts owed) are reported on the balance sheet and are referred to:✔ansLiabilities
69. Once addendum is added to a construction contract, the following details are typically included
FIRST:✔ansName of architect/engineer or issuing agency
70. In order to cancel a home improvement contract who must sign the 3-day notice of
cancellation?✔ansHomeowner
71. What should a contractor do if a client is unhappy with the contractors work?✔ansHandle the
problem in a timely manner when it comes up
72. Unearned Revenues is what type of account?✔ansLiability
73. A notice to Owner provides information to protect the owner against:✔ansMechanics liens
74. Any person engaged in contracting without a license, commits a misdemeanor of first
degree?✔ansTrue
75. One way of limiting the manufacturières responsibility in a construction contract is to use what type
of warranty?✔ansMaterial only
76. Do I need a bond to act as the Financially Resposibile Officer of a construction business?✔ansAll
financially responsibility officers must have a bond in the amount of $100,000.
77. One of the most common reasons that a license is suspended is:✔ansA lapse of the contractors bond
78. If an employee works 50 hours in one week. If the hourly wage rate is $12, what are the gross
wages?✔ans$660 (40 x 12 =$480, 10 x 12 x 1.5 = $180)
BUSINESS/FINANCE STUDY EXAM
QUESTIONS AND SOLUTIONS
57. Generally warranty found in construction contracts usually do not exceed:✔ansOne year
58. What is gross profit?✔ansSales minus cost of goods sold
59. When working in a hazardous area where do you obtain permits for that job?✔ansOSHA
60. If the contractor fails to pay subcontractors or material suppliers, the people who are owed money
may sue the ______ for payment, even if the contractor is paid in full.✔ansOwner
61. What does a balance sheet show?✔ansLiabilities, assets and net worth
62. When bidding, how should the contractor proceed if he/she finds incorrect specifications on a
design?✔ansrefrain from submitting the bid
63. A __________ represents a company's financial position on a specified date.✔ansBalance sheet
64. Assets are usually reported on the balance sheet at which amount?✔ansCost value
65. Which of the following is most important regarding the safety at a job site?✔ansContractor should
require the workers to use safety equipment
66. What is a cost management system and what does it do?✔ansIt gives a cost history to analyze labor
and material costs
67. Home improvement contracts have a 3-day notice of cancellation at the:✔ansSigning of the contract
, 68. Obligations (amounts owed) are reported on the balance sheet and are referred to:✔ansLiabilities
69. Once addendum is added to a construction contract, the following details are typically included
FIRST:✔ansName of architect/engineer or issuing agency
70. In order to cancel a home improvement contract who must sign the 3-day notice of
cancellation?✔ansHomeowner
71. What should a contractor do if a client is unhappy with the contractors work?✔ansHandle the
problem in a timely manner when it comes up
72. Unearned Revenues is what type of account?✔ansLiability
73. A notice to Owner provides information to protect the owner against:✔ansMechanics liens
74. Any person engaged in contracting without a license, commits a misdemeanor of first
degree?✔ansTrue
75. One way of limiting the manufacturières responsibility in a construction contract is to use what type
of warranty?✔ansMaterial only
76. Do I need a bond to act as the Financially Resposibile Officer of a construction business?✔ansAll
financially responsibility officers must have a bond in the amount of $100,000.
77. One of the most common reasons that a license is suspended is:✔ansA lapse of the contractors bond
78. If an employee works 50 hours in one week. If the hourly wage rate is $12, what are the gross
wages?✔ans$660 (40 x 12 =$480, 10 x 12 x 1.5 = $180)
