Arkansas NASCLA Business Law Project
Management
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
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
,Arkansas NASCLA Business Law Project
Management
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
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
,Arkansas NASCLA Business Law Project
Management
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
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
Which type of contract guarantees a fixed price? - Answer: Lump Sum
, Arkansas NASCLA Business Law Project
Management
What is retainage? - Answer: A percentage of the amounts due to the contractor held by the
owner pending satisfactory completion of the project.
Which of the following persons is responsible for daily operations on-site? - Answer:
Superintendent
What is the primary function of scheduling? - Answer: Designate where each activity fits into
the project plan
When planning and scheduling, the project manager develops a critical task analysis, which is
the what? - Answer: Process of identifying each task and determining how long each task will
take.
Which of the following is the responsibility of the project site superintendent? - Answer:
Coordinating with code officials and inspectors
The complete record of all activities and events at the construction site is called what? - Answer:
Daily report
The shop drawings required to clarify the architect's drawings and specifications are often
provided by the what? - Answer: Supplier
What function or system is the contractor's basis for cost control? - Answer: Job costing
What type of insurance protects the contractor against any loss to the project structure, as well
as to materials or equipment purchased for the project? - Answer: All-risk builder's insurance
Management
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
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
,Arkansas NASCLA Business Law Project
Management
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
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
,Arkansas NASCLA Business Law Project
Management
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
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
Which type of contract guarantees a fixed price? - Answer: Lump Sum
, Arkansas NASCLA Business Law Project
Management
What is retainage? - Answer: A percentage of the amounts due to the contractor held by the
owner pending satisfactory completion of the project.
Which of the following persons is responsible for daily operations on-site? - Answer:
Superintendent
What is the primary function of scheduling? - Answer: Designate where each activity fits into
the project plan
When planning and scheduling, the project manager develops a critical task analysis, which is
the what? - Answer: Process of identifying each task and determining how long each task will
take.
Which of the following is the responsibility of the project site superintendent? - Answer:
Coordinating with code officials and inspectors
The complete record of all activities and events at the construction site is called what? - Answer:
Daily report
The shop drawings required to clarify the architect's drawings and specifications are often
provided by the what? - Answer: Supplier
What function or system is the contractor's basis for cost control? - Answer: Job costing
What type of insurance protects the contractor against any loss to the project structure, as well
as to materials or equipment purchased for the project? - Answer: All-risk builder's insurance
