WV BUSINESS LAW PRACTICE EXAM
FOR CONTRACTORS
1. What type of contract requires the contractor to be responsible for both the engineering and
construction of a project?
a. Traditional
b. Design build
c. Turn key
d. Concession - ✔✔ correct answer b. Design build
2. By what date is an employer required to provide its employees with a W-2?
a. January 31
b. February 15
c. March 31
d. April 15 - ✔✔ correct answer a. January 31
3. When developing a project schedule, what does WBS stand for?
a. Work breakdown structure
b. Work building schedule
c. Wall board system
d. Whole build system - ✔✔ correct answer a. Work breakdown structure
4. Overtime wages are paid at what percentage of the normal wage rate? - ✔✔ correct answer c. 150%
5. Using the percentage method of withholding, what is the income tax deducted form an employees
wages that earns $1,500 per pay period, is paid bi-weekly, is single and claims no deductions?
a. $82.95
b. 165.90
c. $194.50
d. $214.50 - ✔✔ correct answer c. $194.50
, WV BUSINESS LAW PRACTICE EXAM
FOR CONTRACTORS
6. What is the penalty for submitting an IRS payroll tax deposit in the amount of $5,000 that is 2 days
late?
a. $100
b. $250
c. $500
d. $750 - ✔✔ correct answer a. $100
The accounting method that recognizes income and expenses only when money is received or paid is
called:
a. the PCM Method
b. the Accrual method
c. the cash method
d. the cost-comparison method - ✔✔ correct answer c. the Cash method
Employers are required to notify employees of changes in policies affecting all the following EXCEPT:
a. pay schedules
b vacation allowance
c. health benefits
d. promotion opportunities - ✔✔ correct answer d. promotion opportunities
What is the process for obtaining a contractor license if the existing license has lapsed? (Do not consider
exceptions)
a. Submit a renewal application with the renewal fee.
b. Submit a renewal application, renewal fee and a $25 late fee.
c. Submit a new license application using test scores from original license.
d. Submit a new license application and retake licensing exams. - ✔✔ correct answer d. Submit a new
license application and retake licensing exams.
What does the term "replacement cost" mean relative to insurance coverage?
FOR CONTRACTORS
1. What type of contract requires the contractor to be responsible for both the engineering and
construction of a project?
a. Traditional
b. Design build
c. Turn key
d. Concession - ✔✔ correct answer b. Design build
2. By what date is an employer required to provide its employees with a W-2?
a. January 31
b. February 15
c. March 31
d. April 15 - ✔✔ correct answer a. January 31
3. When developing a project schedule, what does WBS stand for?
a. Work breakdown structure
b. Work building schedule
c. Wall board system
d. Whole build system - ✔✔ correct answer a. Work breakdown structure
4. Overtime wages are paid at what percentage of the normal wage rate? - ✔✔ correct answer c. 150%
5. Using the percentage method of withholding, what is the income tax deducted form an employees
wages that earns $1,500 per pay period, is paid bi-weekly, is single and claims no deductions?
a. $82.95
b. 165.90
c. $194.50
d. $214.50 - ✔✔ correct answer c. $194.50
, WV BUSINESS LAW PRACTICE EXAM
FOR CONTRACTORS
6. What is the penalty for submitting an IRS payroll tax deposit in the amount of $5,000 that is 2 days
late?
a. $100
b. $250
c. $500
d. $750 - ✔✔ correct answer a. $100
The accounting method that recognizes income and expenses only when money is received or paid is
called:
a. the PCM Method
b. the Accrual method
c. the cash method
d. the cost-comparison method - ✔✔ correct answer c. the Cash method
Employers are required to notify employees of changes in policies affecting all the following EXCEPT:
a. pay schedules
b vacation allowance
c. health benefits
d. promotion opportunities - ✔✔ correct answer d. promotion opportunities
What is the process for obtaining a contractor license if the existing license has lapsed? (Do not consider
exceptions)
a. Submit a renewal application with the renewal fee.
b. Submit a renewal application, renewal fee and a $25 late fee.
c. Submit a new license application using test scores from original license.
d. Submit a new license application and retake licensing exams. - ✔✔ correct answer d. Submit a new
license application and retake licensing exams.
What does the term "replacement cost" mean relative to insurance coverage?
