FL Business and Finance Practice Test
Exam STUDYGUIDE ACTUAL
QUESTIONS AND CORRECT ANSWERS
The owner must prove financial capability no later than ________ days prior to the expiration
of the time for withdrawal of bids. A. 3 B. 5 C.7 D.30 - CORRECT ANSWER Answer:
C. 7 - AIA 701.6.2
How many copies of the plans and specifications shall the contractor maintain on site? A. 1
B. 2 C. 3 D. 4 - CORRECT ANSWER Answer: A. 1 - AIA201 2.3.6
Contracts entered into by unlicensed contractors ________________. A. are immoral B.are
illegal C. are enforceable D. are unenforceable - CORRECT ANSWER Answer: D. are
unenforceable - CM 2-94 489.128
The subcontractor agrees that all work shall be done subject to the final approval of the
______________________. A. architect B. contractor C. both A & B are correct D. none of
the above - CORRECT ANSWER Answer: C. A & B are correct - AIA 401.4.2.5
Which of the following is NOT exempt from chapter 489? A. An employee of a licensee who
is subordinate of a construction licensee acting within the scope. B. Owners of a property
with a cost of $85,000. C. Contractors in work on bridges and roads. D. Anybody doing work
of a minor nature - less $1,000 or less. - CORRECT ANSWER Answer B. Owners of
property $85,000 - CM 2-63 489.103 Limit is $75,000.
The architect has the sole responsibility for ordering __________________. A. Change
orders B. Construction change directives C. any minor change of work D. any changes
whatsoever - CORRECT ANSWER Answer: C. any minor change in work - AIA 201
7.1.2
When considering the location of your office, which of the following is not a consideration?
A. Zoning Ordinances B. Demographic makeup of community C. Building Permits D. Flood
Prone Area Maps - CORRECT ANSWER Answer: B. Demographic Makeup - CM 1-
15
,The bonding cost for a class "B" contract of $900,000 will cost ________________. A.
$9,000 B. $10,000 C. $12,500 D. $22,500 - CORRECT ANSWER Answer: C. $12,500
CM 4-18 Graduated scale: 1st- 100x25%+ 2,500 2nd 400 x15%+ 6,000 3rd 400x 10%=4,000
Total $12,500
A project is to be considered abandoned after _________ days if the contractor just
terminates the project without notification to the owner and without cause. A. 30 B. 60 C. 45
D. 90 - CORRECT ANSWER Answer D. 90 - CM 2-96 , 489.129.1.j
If, at the end of a quarter, a contractor's total FUTA tax is $150, the contractor
_____________________. A. may add the tax to the amount for deposit for the next quarter
B. must deposit the tax during the 1st month after the quarter. C. must deposit the tax during
the 2nd month after the quarter D. must deposit the tax during the 3rd month after the quarter.
- CORRECT ANSWER Answer: A. Add the tax for the next quarter - CM 3-183
Which of the following is a first aid treatment not to be recorded on an OSHA # 200 log? A.
administering a tetanus immunization B. administering a rabies immunization C. application
of bandages or a butterfly dressing in lieu of sutures. D. a minor accident involving a loss of
consciousness. - CORRECT ANSWER Answer: A. Administering a tetanus
immunization - CM 7-24
Which of the following is NOT true about corporations? A. With an "S" corporation there is
no corporate tax - you pay taxes individual. B. Closely held corporations operate more
informally. C. There is no limit of shareholders for either a C-type or S-type Corpo. D. C-type
corpo have the possibility of double taxation. - CORRECT ANSWER Answer: C There
is no limit of shareholders - CM 1-13
What is the term for expenses that are actually paid but not recognized as paid until a later
period? A. post paid costs B. deferred assets C. accrued expenses D. long-term liabilities -
CORRECT ANSWER Answer: B. deferred assets - BGA 242
What is the maximum amount of compensation that a consumer is entitled to if injured on a
jobsite due to an unlicensed contractors negligence? A. 2X the amount of damages. B. 2x the
amount of damages plus attorney fees. C. 3X the amount of damages D. 3x the amount of
, damages, plus attorney's fees - CORRECT ANSWER Answer: D. 3x the amount plus
attorney fees - CM 2-14
When developing a project schedule, which of the following should not influence the
development of the project shedule? A. manpower B. equipment schedules C. completion
date D. activity durations - CORRECT ANSWER Answer: C Completion date - CM
10-63
A contractor must serve a copy fo the claim of lien on the owner and lender (if any) within
how many days of the date the claim of lien is recorded? A. 15 B. 30 C. 60 D. 90 -
CORRECT ANSWER Answer: A. 15 CM 9-30
According to the Statutes of Limitations, how long does a person have to bring action on a
wage recovery claim? A. 2 yrs B. 5 yrs C. 7 yrs D. 10 yrs - CORRECT
ANSWER Answer: A - 2 years - CM 5-30
Categories on the income statement include all the following except ___________________.
A. Revenues B. Expenses C. Inventory D. Income - CORRECT ANSWER Answer: C.
Inventory - CM 3-30
Unless otherwise required in the Bidding Documents, the Agreement for the Work will be
written on AIA Document ____________. A. A201 B. 401 C. A701 D. A101 - CORRECT
ANSWER Answer: D. A101 - AIA 701 - Article 8
If a construction company's federal employment taxes for the quarter ending Sept 30th have
been paid on time, the IRS Form 941 for the quarter ending Sept 30th must be filed not later
than ________________. A. Oct 10th B. Oct 31st C . Nov 10th D Nov 30th - CORRECT
ANSWER Answer: C. Nov 10th - CM 3-156
What type of insurance is issued to protect the contractor for loss of earnings or revenue as a
result of damage to or destruction of buildings or equipment? A. Business Interruption B.
Business Floater C. General Liability D. Contractor Protective Liability - CORRECT
ANSWER Answer: A. Business Interruption - CM 4-8
Exam STUDYGUIDE ACTUAL
QUESTIONS AND CORRECT ANSWERS
The owner must prove financial capability no later than ________ days prior to the expiration
of the time for withdrawal of bids. A. 3 B. 5 C.7 D.30 - CORRECT ANSWER Answer:
C. 7 - AIA 701.6.2
How many copies of the plans and specifications shall the contractor maintain on site? A. 1
B. 2 C. 3 D. 4 - CORRECT ANSWER Answer: A. 1 - AIA201 2.3.6
Contracts entered into by unlicensed contractors ________________. A. are immoral B.are
illegal C. are enforceable D. are unenforceable - CORRECT ANSWER Answer: D. are
unenforceable - CM 2-94 489.128
The subcontractor agrees that all work shall be done subject to the final approval of the
______________________. A. architect B. contractor C. both A & B are correct D. none of
the above - CORRECT ANSWER Answer: C. A & B are correct - AIA 401.4.2.5
Which of the following is NOT exempt from chapter 489? A. An employee of a licensee who
is subordinate of a construction licensee acting within the scope. B. Owners of a property
with a cost of $85,000. C. Contractors in work on bridges and roads. D. Anybody doing work
of a minor nature - less $1,000 or less. - CORRECT ANSWER Answer B. Owners of
property $85,000 - CM 2-63 489.103 Limit is $75,000.
The architect has the sole responsibility for ordering __________________. A. Change
orders B. Construction change directives C. any minor change of work D. any changes
whatsoever - CORRECT ANSWER Answer: C. any minor change in work - AIA 201
7.1.2
When considering the location of your office, which of the following is not a consideration?
A. Zoning Ordinances B. Demographic makeup of community C. Building Permits D. Flood
Prone Area Maps - CORRECT ANSWER Answer: B. Demographic Makeup - CM 1-
15
,The bonding cost for a class "B" contract of $900,000 will cost ________________. A.
$9,000 B. $10,000 C. $12,500 D. $22,500 - CORRECT ANSWER Answer: C. $12,500
CM 4-18 Graduated scale: 1st- 100x25%+ 2,500 2nd 400 x15%+ 6,000 3rd 400x 10%=4,000
Total $12,500
A project is to be considered abandoned after _________ days if the contractor just
terminates the project without notification to the owner and without cause. A. 30 B. 60 C. 45
D. 90 - CORRECT ANSWER Answer D. 90 - CM 2-96 , 489.129.1.j
If, at the end of a quarter, a contractor's total FUTA tax is $150, the contractor
_____________________. A. may add the tax to the amount for deposit for the next quarter
B. must deposit the tax during the 1st month after the quarter. C. must deposit the tax during
the 2nd month after the quarter D. must deposit the tax during the 3rd month after the quarter.
- CORRECT ANSWER Answer: A. Add the tax for the next quarter - CM 3-183
Which of the following is a first aid treatment not to be recorded on an OSHA # 200 log? A.
administering a tetanus immunization B. administering a rabies immunization C. application
of bandages or a butterfly dressing in lieu of sutures. D. a minor accident involving a loss of
consciousness. - CORRECT ANSWER Answer: A. Administering a tetanus
immunization - CM 7-24
Which of the following is NOT true about corporations? A. With an "S" corporation there is
no corporate tax - you pay taxes individual. B. Closely held corporations operate more
informally. C. There is no limit of shareholders for either a C-type or S-type Corpo. D. C-type
corpo have the possibility of double taxation. - CORRECT ANSWER Answer: C There
is no limit of shareholders - CM 1-13
What is the term for expenses that are actually paid but not recognized as paid until a later
period? A. post paid costs B. deferred assets C. accrued expenses D. long-term liabilities -
CORRECT ANSWER Answer: B. deferred assets - BGA 242
What is the maximum amount of compensation that a consumer is entitled to if injured on a
jobsite due to an unlicensed contractors negligence? A. 2X the amount of damages. B. 2x the
amount of damages plus attorney fees. C. 3X the amount of damages D. 3x the amount of
, damages, plus attorney's fees - CORRECT ANSWER Answer: D. 3x the amount plus
attorney fees - CM 2-14
When developing a project schedule, which of the following should not influence the
development of the project shedule? A. manpower B. equipment schedules C. completion
date D. activity durations - CORRECT ANSWER Answer: C Completion date - CM
10-63
A contractor must serve a copy fo the claim of lien on the owner and lender (if any) within
how many days of the date the claim of lien is recorded? A. 15 B. 30 C. 60 D. 90 -
CORRECT ANSWER Answer: A. 15 CM 9-30
According to the Statutes of Limitations, how long does a person have to bring action on a
wage recovery claim? A. 2 yrs B. 5 yrs C. 7 yrs D. 10 yrs - CORRECT
ANSWER Answer: A - 2 years - CM 5-30
Categories on the income statement include all the following except ___________________.
A. Revenues B. Expenses C. Inventory D. Income - CORRECT ANSWER Answer: C.
Inventory - CM 3-30
Unless otherwise required in the Bidding Documents, the Agreement for the Work will be
written on AIA Document ____________. A. A201 B. 401 C. A701 D. A101 - CORRECT
ANSWER Answer: D. A101 - AIA 701 - Article 8
If a construction company's federal employment taxes for the quarter ending Sept 30th have
been paid on time, the IRS Form 941 for the quarter ending Sept 30th must be filed not later
than ________________. A. Oct 10th B. Oct 31st C . Nov 10th D Nov 30th - CORRECT
ANSWER Answer: C. Nov 10th - CM 3-156
What type of insurance is issued to protect the contractor for loss of earnings or revenue as a
result of damage to or destruction of buildings or equipment? A. Business Interruption B.
Business Floater C. General Liability D. Contractor Protective Liability - CORRECT
ANSWER Answer: A. Business Interruption - CM 4-8
