Louisiana Contractor's Exam Business and
Law Questions and Answers
Question 1
Employers are required to orally report a death or an incident that involves the
hospitalization of 3 or more employees to the nearest OSHA office within:
Correct Answer
8 hours
Question 2
What is used by the federal government to identify the tax accounts of employers?
Correct Answer
EIN number
Question 3
Change orders are an example of contract modifications.
Correct Answer
true
Question 4
A residential contractor is one who constructs a fixed structure when the cost exceeds
_________.
Correct Answer
$75,000
Question 5
An example of a fixed asset would be:
Correct Answer
machinery
Page 1 of 36
,Question 6
Contractors with high employee retention receive a substantial reduction in their
unemployment tax rates.
Correct Answer
True
Question 7
Are the owners of a sole proprietorship required to purchase workers compensation
insurance to cover themselves?
Correct Answer
no
Question 8
The process of allocating the cost of a tangible fixed asset over the asset's useful life
is called ________
Correct Answer
depreciation
Question 9
When adding profit to an estimate, the value is usually ___________________________.
Correct Answer
a percentage of the total job cost
Question 10
What is the purpose of New Hire Reporting?
Correct Answer
to detect benefits fraud
to enforce child support orders
both b and c
Page 2 of 36
,Question 11
What Federal Form do employers have new employees complete in order for the
employer to determine the correct amount of federal income tax to withhold from the
employee's paycheck?
Correct Answer
W-4
Question 12
Limited Liability Companies have the ability to be passed down to family members
when an owner (member) dies.
Correct Answer
false
Question 13
Federal law generally requires that sole proprietors, partners, and S-Corporations
make estimated tax payments if they expect to owe at least _______ in taxes for the
current year.
Correct Answer
$1,000
Question 14
A National Pollutant Discharge Elimination System (NPDES) Storm Water permit is
required for projects where ______ acres of land will be disturbed.
Correct Answer
1-5
Question 15
The __________ requires that federal projects valued over $100,000 must produce a
performance bond to guarantee completion of the project under the terms of the
contract.
Correct Answer
Miller Act
Page 3 of 36
, Question 16
As an employer, you are responsible for filing which of the following employment
taxes?
Correct Answer
federal unemployment tax
federal income tax
social security tax
all of the above
Question 17
Is an applicant permitted to furnish a bond in lieu of proof of net worth?
Correct Answer
yes
Question 18
The importance of pre-qualified bids is to ensure _____
Correct Answer
competence
capacity
experience
all of the above
Question 19
________ can be added into an estimate to cover unexpected expenses.
Correct Answer
Contingency costs
Page 4 of 36
Law Questions and Answers
Question 1
Employers are required to orally report a death or an incident that involves the
hospitalization of 3 or more employees to the nearest OSHA office within:
Correct Answer
8 hours
Question 2
What is used by the federal government to identify the tax accounts of employers?
Correct Answer
EIN number
Question 3
Change orders are an example of contract modifications.
Correct Answer
true
Question 4
A residential contractor is one who constructs a fixed structure when the cost exceeds
_________.
Correct Answer
$75,000
Question 5
An example of a fixed asset would be:
Correct Answer
machinery
Page 1 of 36
,Question 6
Contractors with high employee retention receive a substantial reduction in their
unemployment tax rates.
Correct Answer
True
Question 7
Are the owners of a sole proprietorship required to purchase workers compensation
insurance to cover themselves?
Correct Answer
no
Question 8
The process of allocating the cost of a tangible fixed asset over the asset's useful life
is called ________
Correct Answer
depreciation
Question 9
When adding profit to an estimate, the value is usually ___________________________.
Correct Answer
a percentage of the total job cost
Question 10
What is the purpose of New Hire Reporting?
Correct Answer
to detect benefits fraud
to enforce child support orders
both b and c
Page 2 of 36
,Question 11
What Federal Form do employers have new employees complete in order for the
employer to determine the correct amount of federal income tax to withhold from the
employee's paycheck?
Correct Answer
W-4
Question 12
Limited Liability Companies have the ability to be passed down to family members
when an owner (member) dies.
Correct Answer
false
Question 13
Federal law generally requires that sole proprietors, partners, and S-Corporations
make estimated tax payments if they expect to owe at least _______ in taxes for the
current year.
Correct Answer
$1,000
Question 14
A National Pollutant Discharge Elimination System (NPDES) Storm Water permit is
required for projects where ______ acres of land will be disturbed.
Correct Answer
1-5
Question 15
The __________ requires that federal projects valued over $100,000 must produce a
performance bond to guarantee completion of the project under the terms of the
contract.
Correct Answer
Miller Act
Page 3 of 36
, Question 16
As an employer, you are responsible for filing which of the following employment
taxes?
Correct Answer
federal unemployment tax
federal income tax
social security tax
all of the above
Question 17
Is an applicant permitted to furnish a bond in lieu of proof of net worth?
Correct Answer
yes
Question 18
The importance of pre-qualified bids is to ensure _____
Correct Answer
competence
capacity
experience
all of the above
Question 19
________ can be added into an estimate to cover unexpected expenses.
Correct Answer
Contingency costs
Page 4 of 36
