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TN BUSINESS AND LAW ACTUAL EXAM PREP
2026 ALL QUESTIONS AND CORRECT
DETAILED ANSWERS ALREADY A GRADED
WITH EXPERT FEEDBACK |NEW AND REVISED
When negotiating, one should - ANSWER- aim high
A job has direct costs of $198,325, project overhead of 9.2%, company
overhead of 13.9%, and a desired profit of 10.7%. What will the correct
bid be? - ANSWER- $299,584
(9.2 + 13.9 + 10.7 = 33.8%.
Therefore, the direct costs are 66.2% of the bid. $198,325 / .662 =
$299,584)
Generally, which of the following is not a business tax? - ANSWER-
property tax
The (blank) bond guarantees that the contractor has paid the
subcontractors - ANSWER- payment
The (blank) states that one cannot file against a public property -
ANSWER- miller act
Corporations are required to make estimated tax payments if expected
owed tax is - ANSWER- $500
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Which of the following items are not added after estimating materials
and labor? - ANSWER- material consumption
A surety bond is typically a (blank) party bond - ANSWER- three
Generally, who is protected by progress payments? - ANSWER- owner
Minimum wage is set at (blank) per hour for employees who are over 20
years of age - ANSWER- $7.25
Within how many days after a notice of completion is filed for
residential property, must a lien claim be filed? - ANSWER- 10 days
Depreciation is considered a (blank) expense - ANSWER- non cash
Which of the following is used to obtain an EIN? - ANSWER- SS-4
To be legal, a contract must not... - ANSWER- be impossible to perform
Which form is used to file a Tennessee Limited Liability Partnership? -
ANSWER- Form SS-4482
A (blank) bundles all cost factors for the entire task - ANSWER- unit
price method
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The application and initial license fee for a contractor's license shall be...
- ANSWER- $250
A downside to public relations is? - ANSWER- labor-intensive nature
The claims secured by lien for (blank), shall in no case exceed the
amount agreed to be paid by the owner in the owner's contract with the
original contractor - ANSWER- labor done and materials furnished
Which of the following financial statements is comprised of assets and
liabilities? - ANSWER- Balance Sheet
(blank) requires paying prevailing wages in federally-financed projects -
ANSWER- Davis-Bacon Act
Which of the following is not one of the key elements to a contract? -
ANSWER- counter offer
When determining activity duration, it is important to have input from
which of the following? - ANSWER- employees
Which of the following financial statements would one find
depreciation? - ANSWER- income statement
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A sole proprietor is taxed on - ANSWER- ordinary income
Typically, a direct lienor is one who contracts directly with - ANSWER-
property owner
If the contract is ambiguous, the interpretation will go against whom? -
ANSWER- the party who wrote the contract
Of the following, which is not one of the three key functions of a
business plan? - ANSWER- tax documentation
(blank) is anything of value - ANSWER- consideration
Which of the following reports demonstrates items completed, in
progress, and outstanding? - ANSWER- status reports
Within how many days after a notice of completion is filed for
commercial property, must a lien claim be filed? - ANSWER- 30 days
For public construction contracts funded by the state exceeding
$100,000, the contractor must provide a bond in the amount of (blank)
of the contract amount - ANSWER- 25%
For I-9 must be kept for at least (blank) years from the date of hire -
ANSWER- 3 years
TN BUSINESS AND LAW ACTUAL EXAM PREP
2026 ALL QUESTIONS AND CORRECT
DETAILED ANSWERS ALREADY A GRADED
WITH EXPERT FEEDBACK |NEW AND REVISED
When negotiating, one should - ANSWER- aim high
A job has direct costs of $198,325, project overhead of 9.2%, company
overhead of 13.9%, and a desired profit of 10.7%. What will the correct
bid be? - ANSWER- $299,584
(9.2 + 13.9 + 10.7 = 33.8%.
Therefore, the direct costs are 66.2% of the bid. $198,325 / .662 =
$299,584)
Generally, which of the following is not a business tax? - ANSWER-
property tax
The (blank) bond guarantees that the contractor has paid the
subcontractors - ANSWER- payment
The (blank) states that one cannot file against a public property -
ANSWER- miller act
Corporations are required to make estimated tax payments if expected
owed tax is - ANSWER- $500
,2|Page
Which of the following items are not added after estimating materials
and labor? - ANSWER- material consumption
A surety bond is typically a (blank) party bond - ANSWER- three
Generally, who is protected by progress payments? - ANSWER- owner
Minimum wage is set at (blank) per hour for employees who are over 20
years of age - ANSWER- $7.25
Within how many days after a notice of completion is filed for
residential property, must a lien claim be filed? - ANSWER- 10 days
Depreciation is considered a (blank) expense - ANSWER- non cash
Which of the following is used to obtain an EIN? - ANSWER- SS-4
To be legal, a contract must not... - ANSWER- be impossible to perform
Which form is used to file a Tennessee Limited Liability Partnership? -
ANSWER- Form SS-4482
A (blank) bundles all cost factors for the entire task - ANSWER- unit
price method
,3|Page
The application and initial license fee for a contractor's license shall be...
- ANSWER- $250
A downside to public relations is? - ANSWER- labor-intensive nature
The claims secured by lien for (blank), shall in no case exceed the
amount agreed to be paid by the owner in the owner's contract with the
original contractor - ANSWER- labor done and materials furnished
Which of the following financial statements is comprised of assets and
liabilities? - ANSWER- Balance Sheet
(blank) requires paying prevailing wages in federally-financed projects -
ANSWER- Davis-Bacon Act
Which of the following is not one of the key elements to a contract? -
ANSWER- counter offer
When determining activity duration, it is important to have input from
which of the following? - ANSWER- employees
Which of the following financial statements would one find
depreciation? - ANSWER- income statement
, 4|Page
A sole proprietor is taxed on - ANSWER- ordinary income
Typically, a direct lienor is one who contracts directly with - ANSWER-
property owner
If the contract is ambiguous, the interpretation will go against whom? -
ANSWER- the party who wrote the contract
Of the following, which is not one of the three key functions of a
business plan? - ANSWER- tax documentation
(blank) is anything of value - ANSWER- consideration
Which of the following reports demonstrates items completed, in
progress, and outstanding? - ANSWER- status reports
Within how many days after a notice of completion is filed for
commercial property, must a lien claim be filed? - ANSWER- 30 days
For public construction contracts funded by the state exceeding
$100,000, the contractor must provide a bond in the amount of (blank)
of the contract amount - ANSWER- 25%
For I-9 must be kept for at least (blank) years from the date of hire -
ANSWER- 3 years
