Florida Building Contractor Business-
Finance Study Exam Latest Updated
1. How many employees must an employer have before he must apply for workers
compensation insurance? - ANSWER-1 or more
2. The most important aspect to consider when bidding is: - ANSWER-Profit
3. What does the acronym GAAP signify in accounting? - ANSWER-Generally Accepted
Accounted Principles
4. If I fail one or more portions of the examination, do I have to retake all parts again? -
ANSWER-No, only the exams on which he or she failed to achieve a passing score
5. In order to obtain a building permit the following is required: - ANSWER-Filling out an
application
6. When can you allow your employee to view their personal file? - ANSWER-Whenever
they wish to
7. A payment bond would be posted by the: - ANSWER-Prime contractor or property
owner
8. How long after I pass the examinations do I have to apply for Initial Licensure? -
ANSWER-Four years
9. Are contractors required to qualify a construction business? - ANSWER-Yes
10. A payment bond guarantees that the bonding company will pay valid claims for
unpaid bills owed by the ______ posting the bond. - ANSWER-Prime contractor or
property owner
11. Before the completion of work the person who authorizes a temporary certificate of
__________ is the building official. - ANSWER-Occupancy
12. Majority for the negotiated construction contracts are on a ________ basis. -
ANSWER-Cost plus fee
13. What must a contractor do to prevent cash flow problems at the end of a
construction project? - ANSWER-Obtain a line of credit from a bank
14. What should be done with the contractors IRS form W-2? - ANSWER-File a copy in
the contractor's office
, 15. By law, your workers may not be younger than ______ of age. - ANSWER-16
16. Business equity is shown on the financial statement called teh: - ANSWER-Balance
Sheet
17. State disability and income taxes must be: - ANSWER-Reported and paid quarterly
18. The only reason an employer can lawfully deny employment is _________. -
ANSWER-No work experience or social security number
19. You are permitted _______ attempts within four years from the date of the initial
licensure examination to pass all portions of the examinations. - ANSWER-Four years
20. The only time a contractor does not have to be licensed is if: - ANSWER-If you are
working on a minor project and not compensated
21. When is the best time to let your attorney see your construction contract? -
ANSWER-After the contract is prepared but before you sign it
22. Is compensation payable if an employee refuses to use a safety appliance like a
hard hat, safety goggles or observe a safety rule? - ANSWER-Yes, but the benefits may
be reduced by 25%
23. One reason why a contractor keeps change order on file is: - ANSWER-By law
24. Which form authorizes a contractor to proceed with work until a formal change order
can be processed? - ANSWER-Field Order
25. Under the Worker's Compensation Drug-Free Workplace Program, can a Contractor
conduct random drug testing of his/her employees? - ANSWER-The law does not
prohibit a private employer from conducting random testing or any other lawful testing of
employees
26. A permit is required from OSHA for trenches that are ______ or more in depth. -
ANSWER-5 feet
27. In a cost-incentive contract, the most common share of savings awarded to a
contractor is _______ percent? - ANSWER-50%
28. What if an employee refuses to take a drug test? - ANSWER-The employer is
permitted to discharge or discipline the employee or may refuse to hire the applicant
29. The Federal agency that issues an Employer Identification Number is: - ANSWER-
IRS
Finance Study Exam Latest Updated
1. How many employees must an employer have before he must apply for workers
compensation insurance? - ANSWER-1 or more
2. The most important aspect to consider when bidding is: - ANSWER-Profit
3. What does the acronym GAAP signify in accounting? - ANSWER-Generally Accepted
Accounted Principles
4. If I fail one or more portions of the examination, do I have to retake all parts again? -
ANSWER-No, only the exams on which he or she failed to achieve a passing score
5. In order to obtain a building permit the following is required: - ANSWER-Filling out an
application
6. When can you allow your employee to view their personal file? - ANSWER-Whenever
they wish to
7. A payment bond would be posted by the: - ANSWER-Prime contractor or property
owner
8. How long after I pass the examinations do I have to apply for Initial Licensure? -
ANSWER-Four years
9. Are contractors required to qualify a construction business? - ANSWER-Yes
10. A payment bond guarantees that the bonding company will pay valid claims for
unpaid bills owed by the ______ posting the bond. - ANSWER-Prime contractor or
property owner
11. Before the completion of work the person who authorizes a temporary certificate of
__________ is the building official. - ANSWER-Occupancy
12. Majority for the negotiated construction contracts are on a ________ basis. -
ANSWER-Cost plus fee
13. What must a contractor do to prevent cash flow problems at the end of a
construction project? - ANSWER-Obtain a line of credit from a bank
14. What should be done with the contractors IRS form W-2? - ANSWER-File a copy in
the contractor's office
, 15. By law, your workers may not be younger than ______ of age. - ANSWER-16
16. Business equity is shown on the financial statement called teh: - ANSWER-Balance
Sheet
17. State disability and income taxes must be: - ANSWER-Reported and paid quarterly
18. The only reason an employer can lawfully deny employment is _________. -
ANSWER-No work experience or social security number
19. You are permitted _______ attempts within four years from the date of the initial
licensure examination to pass all portions of the examinations. - ANSWER-Four years
20. The only time a contractor does not have to be licensed is if: - ANSWER-If you are
working on a minor project and not compensated
21. When is the best time to let your attorney see your construction contract? -
ANSWER-After the contract is prepared but before you sign it
22. Is compensation payable if an employee refuses to use a safety appliance like a
hard hat, safety goggles or observe a safety rule? - ANSWER-Yes, but the benefits may
be reduced by 25%
23. One reason why a contractor keeps change order on file is: - ANSWER-By law
24. Which form authorizes a contractor to proceed with work until a formal change order
can be processed? - ANSWER-Field Order
25. Under the Worker's Compensation Drug-Free Workplace Program, can a Contractor
conduct random drug testing of his/her employees? - ANSWER-The law does not
prohibit a private employer from conducting random testing or any other lawful testing of
employees
26. A permit is required from OSHA for trenches that are ______ or more in depth. -
ANSWER-5 feet
27. In a cost-incentive contract, the most common share of savings awarded to a
contractor is _______ percent? - ANSWER-50%
28. What if an employee refuses to take a drug test? - ANSWER-The employer is
permitted to discharge or discipline the employee or may refuse to hire the applicant
29. The Federal agency that issues an Employer Identification Number is: - ANSWER-
IRS
