NASCLA Contractors Exam Questions
With Reviewed 100% Correct Detailed
Answers Guaranteed Pass!!
market analysis - Answer ✔✔- major competitors
Financial Plan - Answer ✔✔- projection
Advantage of a Sole Proprietorship - Answer ✔✔- Freedom in decision-making process
Disadvantage of a Sole Proprietorship - Answer ✔✔- Unlimited personal liability
Partnership - 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 - Answer ✔✔- Unlimited personal liability of
general partners.
Partnership dissolves in the event of the death of a general partner.
Purpose of Licensing - Answer ✔✔- A major purpose of licensing is to protect the
health, safety, and welfare of the public
VA Board for Contractors - Answer ✔✔- 7 licensed contractor members
Licensing Requirements: Exemptions - Answer ✔✔- Any material supplier
Class A - Answer ✔✔- Single contract - $120,000 or more
12-month - $750,000 or more
License classes are determined by - Answer ✔✔- Net worth
Class A
Class B - Answer ✔✔- $45,000
$15,000
License Renewals - 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 - Answer ✔✔- change of designated employee 90 days
change of a business/trade name 30 days
change of address 30 days
Prohibited act - Answer ✔✔- Failure to maintain all documents relating to contract 5
years
Recovery Fund - 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
Property Insurance - Answer ✔✔- covers your business and personal property
Named Peril Builders' Risk Insurance - Answer ✔✔- Water damage
Transportation Floater and Motor Truck Cargo Insurance - Answer ✔✔- damage that
occurs to freight during transport
Commercial General Liability (CGL) - Answer ✔✔- bodily injury that results in actual
physical damage or loss for individuals who are not employees.
damage or loss to property not belonging to the business.
Key Man Life Insurance - Answer ✔✔- partnership
if one of the partners died
Workers' Compensation Insurance - Answer ✔✔- for employees who are injured on the
job.
purchased by the employer
VA Coverage Requirements - Answer ✔✔- Under VA Law
Three or more full-time or part-time employees
Subcontractors - Answer ✔✔- verify their insurance coverage
Bond - Answer ✔✔- is a risk transfer between a surety, the contractor, and project
owner
Types of Bonds - Answer ✔✔- Bid bond - will do work at the submitted bid price
Performance bond - complete a contract
With Reviewed 100% Correct Detailed
Answers Guaranteed Pass!!
market analysis - Answer ✔✔- major competitors
Financial Plan - Answer ✔✔- projection
Advantage of a Sole Proprietorship - Answer ✔✔- Freedom in decision-making process
Disadvantage of a Sole Proprietorship - Answer ✔✔- Unlimited personal liability
Partnership - 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 - Answer ✔✔- Unlimited personal liability of
general partners.
Partnership dissolves in the event of the death of a general partner.
Purpose of Licensing - Answer ✔✔- A major purpose of licensing is to protect the
health, safety, and welfare of the public
VA Board for Contractors - Answer ✔✔- 7 licensed contractor members
Licensing Requirements: Exemptions - Answer ✔✔- Any material supplier
Class A - Answer ✔✔- Single contract - $120,000 or more
12-month - $750,000 or more
License classes are determined by - Answer ✔✔- Net worth
Class A
Class B - Answer ✔✔- $45,000
$15,000
License Renewals - 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 - Answer ✔✔- change of designated employee 90 days
change of a business/trade name 30 days
change of address 30 days
Prohibited act - Answer ✔✔- Failure to maintain all documents relating to contract 5
years
Recovery Fund - 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
Property Insurance - Answer ✔✔- covers your business and personal property
Named Peril Builders' Risk Insurance - Answer ✔✔- Water damage
Transportation Floater and Motor Truck Cargo Insurance - Answer ✔✔- damage that
occurs to freight during transport
Commercial General Liability (CGL) - Answer ✔✔- bodily injury that results in actual
physical damage or loss for individuals who are not employees.
damage or loss to property not belonging to the business.
Key Man Life Insurance - Answer ✔✔- partnership
if one of the partners died
Workers' Compensation Insurance - Answer ✔✔- for employees who are injured on the
job.
purchased by the employer
VA Coverage Requirements - Answer ✔✔- Under VA Law
Three or more full-time or part-time employees
Subcontractors - Answer ✔✔- verify their insurance coverage
Bond - Answer ✔✔- is a risk transfer between a surety, the contractor, and project
owner
Types of Bonds - Answer ✔✔- Bid bond - will do work at the submitted bid price
Performance bond - complete a contract
