NASCLA Business Law and Managment EXAM SC Questions with Correct Answers

NASCLA Business Law and Managment EXAM SC Questions with Correct Answers Sole Proprietorship - answera business owned and managed by a single individual Simplest form to set up unlimited Liability Partnerships - answerBusiness organizations in which two or more persons share responsibilities, costs, profits, and losses. C Corporations - answerCorporations that have no restrictions on who owns their shares or the number of shareholders; they cannot qualify for subchapter S tax treatment and are subject to direct taxation S corporation - answerA unique government creation that looks like a corporation but is taxed like sole proprietorships and partnerships No more than 100 shareholders FILING IRS FORM 2553 Limited liability company - answerA business organization in which the business (not the owner) is liable for the company's debts joint venture - answeran agreement between two or more companies to share a business project Reserving business Name - answerRegister with secretary of state Purpose of licensing - answerProtect Health, Safety, and welfare of the public When is a Contractors license Needed? - answerExcess of $5000 cease and desist order - answerruling requiring a company to stop an unfair business practice from performing work without a license Monetary limitations for general and mechanical contractors - answerdetermined by the financial net worth of the entity seeking licensure Group Limitations - answerDivided into groups according to net worth. Reciprocity - answerSouth Carolina has a reciprocal agreement with certain states but licensee must still pass the business and law exam. Property insurance - answerA type of insurance that covers damage to property, such as a home. liability insurance - answerinsurance that provides protection from claims arising from injuries or damage to other people or property Business Owners Policy (BOP) - answerProperty and liability Coverage are bundles under business owners policies Automobile Insurance - answerProvides payments for both liability and physical damage to vehicles Burglary and Theft Insurance - answerLoss or damage by burglary, theft, Larceny, Robbery, Forgery, Fraud, and vandalism. Key Man Life Insurance - answerThis type of insurance is available as life insurance or disability insurance to protect continuing sucess of your business. Coverage Gaps and Overlaps - answerIt is important to evaluate all your insurance coverage. Using one insurer may minimize gaps and overlaps in coverage. Bid Documents include - answerAn invitation to Bid Bid instructions Bid forms Supplements Ethics in bidding - answerBid Shopping Bid Peddling Bid Rigging Bid Shopping - answerThe practice of revealing the sub-bid of one subcontractor to obtain a lower price from another subcontractor. Bid Peddling - answerapproaching the general contractor once you won the job and try to get the price lower bid rigging - answerContractors Coordinate their bids to fix the award outcome of a project Total Material Unit Cost - answerPrice Per unit x Number of units Needed Required Contract Elements - answerAcceptance, Consideration, competent parties, and legal purpose Contract Provisions - answerContract price and payment terms obligation of the parties breach of contract breach of contract - answerone party fails to fulfill contract boiler plate provisions - answerContain standard Language designed to protect you in the event of a lawsuit Provisions to limit Risk - answerLimit the liability of the contracting parties by addressing allocation of risk recitals - answerAppears at the beginning of the contract and is intended to give background information Types of Contsruction Contracts - answeradress who is responsible for cost savings and overuns for estimated work Sources of Contracts - answerAmerican institute of Architechs (AIA) Associated General Contractors (AGC) Change Order - answerWritten order to make a change in a contract Contract Documents and project manual - answerCentral Location for bid documents, Contract Provisions, Technical specifications and agenda Scheduling Process - answerthe sequence of tasks activity Duration Contingency time Task time ranges Float time Scheduling Methods - answer- Calendar scheduling - Bar Chart Scheduling - Critical path method