NASCLA Contractors
Guide Questions and
Complete Solutions
Graded A+
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
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
If the balance of the fund falls below
assessment will not exceed $50
Guide Questions and
Complete Solutions
Graded A+
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
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
If the balance of the fund falls below
assessment will not exceed $50
