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Mississippi (MS) Law and Business Management
Exam | Latest Verified Questions and Detailed
Answers
OVERVIEW DESCRIPTION:
This Comprehensive set of multiple choice questions is designed for the Mississippi Law
and Business Management Exam, a mandatory open-book computer-based assessment for
prospective contractors. The exam focuses on essential knowledge areas including
Mississippi licensing regulations, estimating and bidding, contract management, project
administration, mechanics' lien law, financial management, tax and labor laws, risk
management and safety, and business organization. Administered by PSI Services, the exam
requires pre-approval from the Mississippi State Board of Contractors before scheduling.
The primary reference for the exam is the Contractor's Guide to Business, Law, and Project
Management, Mississippi Edition, and the content is intended to assess a candidate's
understanding of business operations, legal compliance, and project management
principles critical to operating as a contractor in Mississippi.
QUESTION 1
Which entity is responsible for administering the Mississippi Law and Business
Management Exam?
A. Mississippi Development Authority
B. PSI Services
C. Mississippi Department of Revenue
D. Occupational Safety and Health Administration
CORRECT ANSWER: B
EXPERT RATIONALE: PSI Services administers the exam on behalf of the Mississippi State
Board of Contractors. The Board handles pre-approval, while PSI handles scheduling and
delivery.
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QUESTION 2
Before an applicant can schedule the Mississippi Law and Business Management Exam,
what must occur?
A. Payment of first-year license fee
B. Completion of an apprenticeship
C. Pre-approval from the Mississippi State Board of Contractors
D. Submission of a surety bond
CORRECT ANSWER: C
EXPERT RATIONALE: The MSBOC must grant pre-approval before the applicant may
schedule the test with PSI. This ensures only qualified applicants proceed to
examination.
QUESTION 3
Which publication is the primary reference for the Mississippi Law and Business
Management Exam?
A. Mississippi Mechanics’ Lien Manual
B. Contractor's Guide to Business, Law, and Project Management, Mississippi Edition
C. OSHA Construction Standards
D. Mississippi Employment Law Handbook
CORRECT ANSWER: B
EXPERT RATIONALE: The exam is open-book and relies primarily on the Mississippi
Edition of the Contractor's Guide. Candidates should be familiar with its organization
and content.
QUESTION 4
The Mississippi Law and Business Management Exam is best described as which type of
,3|Page
test?
A. Closed-book written exam
B. Open-book computer-based test
C. Oral examination
D. Practical field test
CORRECT ANSWER: B
EXPERT RATIONALE: The exam is delivered electronically and permits use of approved
reference materials during testing.
QUESTION 5
Which state agency grants pre-approval for contractor licensing examinations in
Mississippi?
A. Secretary of State
B. Mississippi State Board of Contractors
C. Mississippi Insurance Department
D. Department of Environmental Quality
CORRECT ANSWER: B
EXPERT RATIONALE: The Mississippi State Board of Contractors is the licensing authority
and must pre-approve all exam applicants.
QUESTION 6
A contractor is preparing a bid. Which item should be included in the estimate to cover
home office expenses?
A. Direct labor only
B. Overhead
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C. Subcontractor markup only
D. Sales tax
CORRECT ANSWER: B
EXPERT RATIONALE: Overhead includes indirect costs such as home office rent, utilities,
and administrative salaries that support all projects.
QUESTION 7
Profit in a construction bid is typically calculated as a percentage of which amount?
A. Direct labor only
B. Total project cost
C. Material cost only
D. Payroll taxes only
CORRECT ANSWER: B
EXPERT RATIONALE: Profit margin is generally applied to total estimated costs to ensure
adequate return on the project.
QUESTION 8
Which cost is considered a direct project cost?
A. Company advertising
B. Office rent
C. Lumber for framing
D. Accounting software subscription
CORRECT ANSWER: C
EXPERT RATIONALE: Direct costs are specifically identifiable with a project, such as
materials, labor, and equipment used on that job.
Mississippi (MS) Law and Business Management
Exam | Latest Verified Questions and Detailed
Answers
OVERVIEW DESCRIPTION:
This Comprehensive set of multiple choice questions is designed for the Mississippi Law
and Business Management Exam, a mandatory open-book computer-based assessment for
prospective contractors. The exam focuses on essential knowledge areas including
Mississippi licensing regulations, estimating and bidding, contract management, project
administration, mechanics' lien law, financial management, tax and labor laws, risk
management and safety, and business organization. Administered by PSI Services, the exam
requires pre-approval from the Mississippi State Board of Contractors before scheduling.
The primary reference for the exam is the Contractor's Guide to Business, Law, and Project
Management, Mississippi Edition, and the content is intended to assess a candidate's
understanding of business operations, legal compliance, and project management
principles critical to operating as a contractor in Mississippi.
QUESTION 1
Which entity is responsible for administering the Mississippi Law and Business
Management Exam?
A. Mississippi Development Authority
B. PSI Services
C. Mississippi Department of Revenue
D. Occupational Safety and Health Administration
CORRECT ANSWER: B
EXPERT RATIONALE: PSI Services administers the exam on behalf of the Mississippi State
Board of Contractors. The Board handles pre-approval, while PSI handles scheduling and
delivery.
,2|Page
QUESTION 2
Before an applicant can schedule the Mississippi Law and Business Management Exam,
what must occur?
A. Payment of first-year license fee
B. Completion of an apprenticeship
C. Pre-approval from the Mississippi State Board of Contractors
D. Submission of a surety bond
CORRECT ANSWER: C
EXPERT RATIONALE: The MSBOC must grant pre-approval before the applicant may
schedule the test with PSI. This ensures only qualified applicants proceed to
examination.
QUESTION 3
Which publication is the primary reference for the Mississippi Law and Business
Management Exam?
A. Mississippi Mechanics’ Lien Manual
B. Contractor's Guide to Business, Law, and Project Management, Mississippi Edition
C. OSHA Construction Standards
D. Mississippi Employment Law Handbook
CORRECT ANSWER: B
EXPERT RATIONALE: The exam is open-book and relies primarily on the Mississippi
Edition of the Contractor's Guide. Candidates should be familiar with its organization
and content.
QUESTION 4
The Mississippi Law and Business Management Exam is best described as which type of
,3|Page
test?
A. Closed-book written exam
B. Open-book computer-based test
C. Oral examination
D. Practical field test
CORRECT ANSWER: B
EXPERT RATIONALE: The exam is delivered electronically and permits use of approved
reference materials during testing.
QUESTION 5
Which state agency grants pre-approval for contractor licensing examinations in
Mississippi?
A. Secretary of State
B. Mississippi State Board of Contractors
C. Mississippi Insurance Department
D. Department of Environmental Quality
CORRECT ANSWER: B
EXPERT RATIONALE: The Mississippi State Board of Contractors is the licensing authority
and must pre-approve all exam applicants.
QUESTION 6
A contractor is preparing a bid. Which item should be included in the estimate to cover
home office expenses?
A. Direct labor only
B. Overhead
, 4|Page
C. Subcontractor markup only
D. Sales tax
CORRECT ANSWER: B
EXPERT RATIONALE: Overhead includes indirect costs such as home office rent, utilities,
and administrative salaries that support all projects.
QUESTION 7
Profit in a construction bid is typically calculated as a percentage of which amount?
A. Direct labor only
B. Total project cost
C. Material cost only
D. Payroll taxes only
CORRECT ANSWER: B
EXPERT RATIONALE: Profit margin is generally applied to total estimated costs to ensure
adequate return on the project.
QUESTION 8
Which cost is considered a direct project cost?
A. Company advertising
B. Office rent
C. Lumber for framing
D. Accounting software subscription
CORRECT ANSWER: C
EXPERT RATIONALE: Direct costs are specifically identifiable with a project, such as
materials, labor, and equipment used on that job.
