NASCLA Contractors Guide Solutions Updated 2024

NASCLA Contractors Guide Solutions Updated 2024 market analysis - ANSWER-major competitors Financial Plan - ANSWER-projection Advantage of a Sole Proprietorship - ANSWER-Freedom in decision-making process Disadvantage of a Sole Proprietorship - ANSWER-Unlimited personal liability Partnership - ANSWER-each partner expects to share in the profits and losses of the business. Two types of partnerships- General and limited Disadvantages of a General Partnership - ANSWER-Unlimited personal liability of general partners. Partnership dissolves in the event of the death of a general partner. Purpose of Licensing - ANSWER-A major purpose of licensing is to protect the health, safety, and welfare of the public VA Board for Contractors - ANSWER-7 licensed contractor members Licensing Requirements: Exemptions - ANSWER-Any material supplier Class A - ANSWER-Single contract - $120,000 or more 12-month - $750,000 or more Copyright © OLIVIAWEST2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED Copyright ©Stuvia International BV Page 2/10 License classes are determined by - ANSWER-Net worth Class A Class B - ANSWER-$45,000 $15,000 License Renewals - ANSWER-license expire two years must file renewal form within 30 days of the license expiration fees are not received within 30 days must reinstate the license Changes - ANSWER-change of designated employee 90 days change of a business/trade name 30 days change of address 30 days Prohibited act - ANSWER-Failure to maintain all documents relating to contract 5 years Recovery Fund - ANSWER-to homeowners per claimant $20,000 per contractor $40,000 $25 assessment minimum balance set at $400,000 Copyright © OLIVIAWEST2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED Copyright ©Stuvia International BV Page 3/10 If the balance of the fund falls below assessment will not exceed $50 Property Insurance - ANSWER-covers your business and personal property Named Peril Builders' Risk Insurance - ANSWER-Water damage Transportation Floater and Motor Truck Cargo Insurance - ANSWER-damage that occurs to freight during transport Commercial General Liability (CGL) - ANSWER-bodily injury that results in actual physical damage or loss for individuals who are not employees. damage or loss to property not belonging to the business. Key Man Life Insurance - ANSWER-partnership if one of the partners died Workers' Compensation Insurance - ANSWER-for employees who are injured on the job. purchased by the employer VA Coverage Requirements - ANSWER-Under VA Law