Depreciation is taken on which of the company's assets?
a. Loans
b. Current assets
c. Fixed assets
d. None of the above - ANSWER C ... Explanation: Depreciation is counted from fixed as-
sets.
A private employer who employs __ or more people as of July 1, 2010, may not hire a new
employee unless the employer is registered with and uses a status verification system such
as E -Verify to verify the federal legal working status of any new employee.
a. 5
b. 10
c. 15
d. 1 - ANSWER C ... Explanation: A private employer who employs 15 or more people as
of July 1, 2010, may not hire a new employee unless the employer is registered with and
uses a status verification system such as E -Verify to verify the federal legal working status of
any new employee.
If a contractor decides to increase the contract price, the contractor:
a. Should get a loan from the bank
b. May request assistance from the subcontractor
c. And the owner must agree to a written and signed change order
d. Should request the building inspector to revise the specifications - ANSWER C ... Expla-
nation: A written and signed change order can allow the contractor to change a contract
price.
If a subcontractor signs an unconditional waiver and release, this would imply that a:
1
,a. Subcontractor cannot ask anything more of the owner
b. Owner cannot ask anything more of the subcontractor
c. Subcontractor cannot get anything from the prime
d. Subcontractor cannot ask anything more of the prime - ANSWER A ... Explanation:
Once the subcontractor signs an unconditional waiver and release, the subcontractor cannot
ask anything more of the owner.
Any applicant who has been denied a license to practice on the basis of credentials, or fail-
ure to pass a required examination, may submit a request for agency review to the executive
director ____ following notification of the denial of a license or refusal to renew or reinstate
a license.
a. Within 10 days
b. Within 20 days
c. Within 30 days
d. Within 60 days - ANSWER 5. C ... Explanation: Any applicant who has been denied a li-
cense to practice on the basis of credentials, character, or failure to pass a required examina-
tion, or who has been refused renewal or reinstatement of a license to practice on the basis
that the applicant does not meet qualifications for continued licensure in any occupation or
profession under the jurisdiction of the division may submit a request for agency review to
the executive director within 30 days following notification of the denial of a license or re-
fusal to renew or reinstate a license.
What should a contractor do if after starting a home improvement project the contractor
discovers that the details and specifications do NOT correctly show the existing construc-
tion?
a. Stop and work on a correction
b. Stop the job and inform the owner or his agent
c. Continue the work if variations are only minor
d. Stop the job and inform the Building Department - ANSWER B ... Explanation: Any de-
tails and specifications are not represented correctly then it is the contractor's duty to in-
form the owner or his agent.
2
,Keeping good accounting records is important for:
a. Maintaining financial statements
b. Obtaining financing
c. Effective management
d. All of the above - ANSWER D ... Explanation: Effective management, maintaining finan-
cial statements and obtaining proper financing are all the result of keeping good accounting
records.
8. The promise by a party called the guarantor to make good the mistake, debt, or default of
another party found in the construction contract law is called:
a. Surety
b. Guarantee
c. Warrantee
d. Agreement - ANSWER B ... Explanation: Guarantee.
9. The plans and specifications of a home improvement project usually describe:
a. Layout sizes
b. Liquidated damages
c. Consent to arbitrate
d. Neighborhood regulations - ANSWER 9. A ... Explanation: Layout sizes are usually de-
scribed in plans and specifications of home improvement projects.
The number of years that an employer must keep records of FUTA and other federal taxes is:
a. 2 years
b. 4 years
c. 6 years
d. 10 years - ANSWER B ... Explanation: 4 years is the amount of time an employer must
keep records of FUTA and other federal taxes.
3
, Page: 5-2
What is the term for a detailed compilation of the quantity of each elemental work item?
a. Summary sheet
b. Bid invitation
c. Takeoff
d. Specification - ANSWER C ... Explanation: Estimators use construction blueprints, either
manually or electronically, and start "taking off" quantities of items they will need from
those blueprints in order to prepare part of the estimate.
Page: 6-3
Before beginning work, an employer or contractor must inquire whether asbestos is present
in any building constructed prior to:
a. 1990
b. 1987
c. 1978
d. 1979 - ANSWER C ... Explanation: Buildings prior to 1978 may contain asbestos.
Page: 4-5
Important thing to include when advertising for construction work is:
a. The company's complete name style
b. A list of all the owners of the company
c. The contractor's license number
d. The company's address - ANSWER C ... Explanation: A contractor's license number
should be presented when advertising for legitimacy purposes.
Which type of specification is most commonly used for public work?
4
a. Loans
b. Current assets
c. Fixed assets
d. None of the above - ANSWER C ... Explanation: Depreciation is counted from fixed as-
sets.
A private employer who employs __ or more people as of July 1, 2010, may not hire a new
employee unless the employer is registered with and uses a status verification system such
as E -Verify to verify the federal legal working status of any new employee.
a. 5
b. 10
c. 15
d. 1 - ANSWER C ... Explanation: A private employer who employs 15 or more people as
of July 1, 2010, may not hire a new employee unless the employer is registered with and
uses a status verification system such as E -Verify to verify the federal legal working status of
any new employee.
If a contractor decides to increase the contract price, the contractor:
a. Should get a loan from the bank
b. May request assistance from the subcontractor
c. And the owner must agree to a written and signed change order
d. Should request the building inspector to revise the specifications - ANSWER C ... Expla-
nation: A written and signed change order can allow the contractor to change a contract
price.
If a subcontractor signs an unconditional waiver and release, this would imply that a:
1
,a. Subcontractor cannot ask anything more of the owner
b. Owner cannot ask anything more of the subcontractor
c. Subcontractor cannot get anything from the prime
d. Subcontractor cannot ask anything more of the prime - ANSWER A ... Explanation:
Once the subcontractor signs an unconditional waiver and release, the subcontractor cannot
ask anything more of the owner.
Any applicant who has been denied a license to practice on the basis of credentials, or fail-
ure to pass a required examination, may submit a request for agency review to the executive
director ____ following notification of the denial of a license or refusal to renew or reinstate
a license.
a. Within 10 days
b. Within 20 days
c. Within 30 days
d. Within 60 days - ANSWER 5. C ... Explanation: Any applicant who has been denied a li-
cense to practice on the basis of credentials, character, or failure to pass a required examina-
tion, or who has been refused renewal or reinstatement of a license to practice on the basis
that the applicant does not meet qualifications for continued licensure in any occupation or
profession under the jurisdiction of the division may submit a request for agency review to
the executive director within 30 days following notification of the denial of a license or re-
fusal to renew or reinstate a license.
What should a contractor do if after starting a home improvement project the contractor
discovers that the details and specifications do NOT correctly show the existing construc-
tion?
a. Stop and work on a correction
b. Stop the job and inform the owner or his agent
c. Continue the work if variations are only minor
d. Stop the job and inform the Building Department - ANSWER B ... Explanation: Any de-
tails and specifications are not represented correctly then it is the contractor's duty to in-
form the owner or his agent.
2
,Keeping good accounting records is important for:
a. Maintaining financial statements
b. Obtaining financing
c. Effective management
d. All of the above - ANSWER D ... Explanation: Effective management, maintaining finan-
cial statements and obtaining proper financing are all the result of keeping good accounting
records.
8. The promise by a party called the guarantor to make good the mistake, debt, or default of
another party found in the construction contract law is called:
a. Surety
b. Guarantee
c. Warrantee
d. Agreement - ANSWER B ... Explanation: Guarantee.
9. The plans and specifications of a home improvement project usually describe:
a. Layout sizes
b. Liquidated damages
c. Consent to arbitrate
d. Neighborhood regulations - ANSWER 9. A ... Explanation: Layout sizes are usually de-
scribed in plans and specifications of home improvement projects.
The number of years that an employer must keep records of FUTA and other federal taxes is:
a. 2 years
b. 4 years
c. 6 years
d. 10 years - ANSWER B ... Explanation: 4 years is the amount of time an employer must
keep records of FUTA and other federal taxes.
3
, Page: 5-2
What is the term for a detailed compilation of the quantity of each elemental work item?
a. Summary sheet
b. Bid invitation
c. Takeoff
d. Specification - ANSWER C ... Explanation: Estimators use construction blueprints, either
manually or electronically, and start "taking off" quantities of items they will need from
those blueprints in order to prepare part of the estimate.
Page: 6-3
Before beginning work, an employer or contractor must inquire whether asbestos is present
in any building constructed prior to:
a. 1990
b. 1987
c. 1978
d. 1979 - ANSWER C ... Explanation: Buildings prior to 1978 may contain asbestos.
Page: 4-5
Important thing to include when advertising for construction work is:
a. The company's complete name style
b. A list of all the owners of the company
c. The contractor's license number
d. The company's address - ANSWER C ... Explanation: A contractor's license number
should be presented when advertising for legitimacy purposes.
Which type of specification is most commonly used for public work?
4
