Virginia Class A Contractor License Complete Exam Study Questions with 100% Correct Answers

Virginia Class A Contractor License Complete Exam Study Questions with 100% Correct Answers 1. What are the 3 key functions of a business plan? - ANSWER Planning tool, Loan/Investor Document, and Benchmarking Tool 2. What is the simplest form of ownership to set up? - ANSWER Sole Proprietorship 3. What is the difference in liability between a Sole Proprietorship and an S Corporation? - ANSWER A Sole Proprietorship has Unlimited personal liability, while an S Corporation generally has no personal liability of the shareholders. 4. What are the three types of scheduling methods? - ANSWER Calendar Scheduling, Bar Chart Scheduling, Critical Path Method 5. What are two benefits of Just-In-Time (JIT) deliveries? - ANSWER They keep your inventory cost low and less inventory on site will cut down on risk of theft or vandalism 6. Basic universal design - ANSWER means the design of products and environments to be usable by all people, to the greatest extent possible, without the need for adaptation or specialization. 7. Board - ANSWER means the West Virginia Contractor Licensing Board 8. Cease and desist order - ANSWER means an order issued by the board pursuant to the provisions of this article 9. What is a contractor? - ANSWER A person who undertakes construction work for compensation, other than as an employee. 10. What types of work can a contractor perform? - ANSWER Construct, alter, repair, add to, subtract from, improve, move, wreck, or demolish buildings and structures. 11. What is the minimum cost for residential work to require a contractor? - ANSWER $5,000 12. What is the minimum cost for commercial work to require a contractor? - ANSWER $25,000 13. What additional structures can a contractor erect in connection with their work? - ANSWER Scaffolding or other structures. 14. A construction manager who performs management and counseling services for a construction project for a professional fee is considered a - ANSWER Contractor 15. One who merely furnishes materials or supplies without fabrication or consuming them in the construction project - ANSWER Not a contractor 16. A person who personally performs construction work on the site of real property which the person owns or leases whether for commercial or residential purposes - ANSWER Not a contractor 17. A person who is licensed or registered as a professional and who functions under the control of any other licensing or regulatory board, whose primary business is real estate sales, appraisal, development, management, and maintenance, who acting in his or her respective professional capacity and any employee of the professional, acting in the course of his or her employment, performs any work which may be considered to be performing contracting work - ANSWER Not a contractor 18. What are the two parts that a Contractor license consists of? - ANSWER The class of the license and the specialty of work the contractor is allowed to perform 19. Who benefits from the Contractor Transaction Recovery Fund? - ANSWER Homeowners who have suffered a reimbursable loss from a dishonest or incompetent general contractor 20. What type of insurance covers your business and personal property when damage, theft, or loss occurs? - ANSWER Property Insurance 21. What are four basic requirements of bonds? - ANSWER 1. Total dollar amount required for the bond 2. Length of the bond 3. Requirements for notice of defect or lack of maintenance 4. Bond enforcement 22. What documents are included in a bid package? - ANSWER Invitation to bid, bid instructions, bid forms, supplements, and sometimes addendums