SC Business Management and Law || (Needed to Pass)
Confirmed A+.
The single most important thing one can do in starting a business is to do which of the following:
correct answers Write a business plan
Which form of business is the easiest to establish and terminate, but has the liability? correct
answers Sole proprietorship
What type of organization should be formed to avoid double taxation on income? correct
answers S Corporation
Insurance is a contractors protection against what? correct answers Risk
What type of insurance does a contractor need for protection against claims for Bodily injury to
anyone NOT employed with your company? correct answers Liability
Which of the following best describes contractor liability insurance? correct answers An
insurance policy designed to protect the contractor against claims brought by third parties.
Who is protected by the Comprehensive General Liability Insurance? correct answers The name
insured (builder)
If an employee earns $10.00 per hour for a 50 hour work week, how much is the over-time
premium? correct answers $50.00
If an employee quits working before the end of the year, you may give him form w-2 any time
after employment ends, but not later than _______ of the following year. correct answers January
31
What type of insurance is needed to protect portions of the construction project that has been
completed? correct answers Builders risk.
Workman's compensation insurance protects ________. correct answers Employer
What is the purpose of workman's compensation insurance correct answers To cover employee
A three party agreement that guarantees that the contractor will perform work in accordance with
the contract and pay off all construction costs is what? correct answers Contract bond
The maximum bond amounts for a single project are usually limited to what amount? correct
answers 10 times the contractors working capital
The ability of the contractor to obtain bonds are all of the following except: correct answers
Knowledge of the staff
, What type of bond guarantees to the owner, that's the project will be completed according to the
plans, specifications, terms, and conditions of the contract? correct answers Performance bond
What method of estimating is an accurate method that lists all the materials and labor needed
correct answers Quantity survey method
The most difficult aspect of the estimating process is correct answers Labor cost
If a construction jobs hard cost is $14000 and the overhead is $6000, what would be the
estimated cost on a new job if the company has a 2.5% decrease in hard cost and 4.5% in
overhead cost? correct answers $19380
All of the following are project conditions cost except correct answers Advertising cost
Which of the following is not considered as company overhead? correct answers Bonds
The average profit margin in the construction industry over the past few years has been about
_____% correct answers 15%
The most important reason for a thorough understanding of contracts and the proper use is to
correct answers Prevent disputes
The needed primary elements to make a contract binding are correct answers Offer, acceptance,
and consideration
Which if the following is necessary for a contract to be enforced? correct answers The
performance of the work or services must be legal
In contractual language, what does "consideration" mean? correct answers Something of value
The term used to refer to a percentage of progress payments held by the owner until project is
completed is called what? correct answers Retain age
A provision in a contract for a certain part of payments to be held back is called what? correct
answers Retain age
A contract may be written or oral correct answers True
The project schedule is nothing more than which of the following correct answers A plan with
time applied
_______ identifies the time for which an activity can be delayed without delaying project
completion correct answers Float
Confirmed A+.
The single most important thing one can do in starting a business is to do which of the following:
correct answers Write a business plan
Which form of business is the easiest to establish and terminate, but has the liability? correct
answers Sole proprietorship
What type of organization should be formed to avoid double taxation on income? correct
answers S Corporation
Insurance is a contractors protection against what? correct answers Risk
What type of insurance does a contractor need for protection against claims for Bodily injury to
anyone NOT employed with your company? correct answers Liability
Which of the following best describes contractor liability insurance? correct answers An
insurance policy designed to protect the contractor against claims brought by third parties.
Who is protected by the Comprehensive General Liability Insurance? correct answers The name
insured (builder)
If an employee earns $10.00 per hour for a 50 hour work week, how much is the over-time
premium? correct answers $50.00
If an employee quits working before the end of the year, you may give him form w-2 any time
after employment ends, but not later than _______ of the following year. correct answers January
31
What type of insurance is needed to protect portions of the construction project that has been
completed? correct answers Builders risk.
Workman's compensation insurance protects ________. correct answers Employer
What is the purpose of workman's compensation insurance correct answers To cover employee
A three party agreement that guarantees that the contractor will perform work in accordance with
the contract and pay off all construction costs is what? correct answers Contract bond
The maximum bond amounts for a single project are usually limited to what amount? correct
answers 10 times the contractors working capital
The ability of the contractor to obtain bonds are all of the following except: correct answers
Knowledge of the staff
, What type of bond guarantees to the owner, that's the project will be completed according to the
plans, specifications, terms, and conditions of the contract? correct answers Performance bond
What method of estimating is an accurate method that lists all the materials and labor needed
correct answers Quantity survey method
The most difficult aspect of the estimating process is correct answers Labor cost
If a construction jobs hard cost is $14000 and the overhead is $6000, what would be the
estimated cost on a new job if the company has a 2.5% decrease in hard cost and 4.5% in
overhead cost? correct answers $19380
All of the following are project conditions cost except correct answers Advertising cost
Which of the following is not considered as company overhead? correct answers Bonds
The average profit margin in the construction industry over the past few years has been about
_____% correct answers 15%
The most important reason for a thorough understanding of contracts and the proper use is to
correct answers Prevent disputes
The needed primary elements to make a contract binding are correct answers Offer, acceptance,
and consideration
Which if the following is necessary for a contract to be enforced? correct answers The
performance of the work or services must be legal
In contractual language, what does "consideration" mean? correct answers Something of value
The term used to refer to a percentage of progress payments held by the owner until project is
completed is called what? correct answers Retain age
A provision in a contract for a certain part of payments to be held back is called what? correct
answers Retain age
A contract may be written or oral correct answers True
The project schedule is nothing more than which of the following correct answers A plan with
time applied
_______ identifies the time for which an activity can be delayed without delaying project
completion correct answers Float
