FLORIDA BUILDING CONTRACTOR
BUSINESS/FINANCE STUDY EXAM 2
QUESTIONS AND CORRECT
SOLUTIONS
47. Which of the following is considered a direct cost? ✔ans.Payroll tax
48. When a contractor discovers a hazardous material, the contractor must inform the:
✔ans.Homeowner
49. How does a contractor pay for his/her delivery materials? ✔ans.C.O.D.
50. When a sub-contractor does work on a public works contract, the public agency considers the
subcontractor to be: ✔ans.An employee of the contractor
51. You would go to a district court: ✔ans.For an interstate dispute
52. A sole proprietorship has how many members running the company? ✔ans.One
53. Which act establishes the rights of workers to organize into unions and negotiate contracts?
✔ans.National Labor Relations act of 1935
54. If a home solicitation contract is signed on Thursday afternoon, what is the deadline for
cancellation? ✔ans.Monday midnight
55. What is the purpose of OSHA? ✔ans.Helps employers voluntarily follow safety and health laws and
standards
, 56. Which of the following statements is true concerning the use of double form of bonds as surety
regarding a construction contract? ✔ans.It covers separately the interests of the owner and of
subcontractors, material supplies and workmen
57. You must report FICA any withheld income tax (Form 941) every: ✔ans.Three months
58. The best way to reduce insurance cost without reducing risk is to: ✔ans.Compare premiums and
coverage yearly
59. Which of the following is least likely to result in a claim dispute between the contractor and an
owner? ✔ans.Rejection of a sub-contractor
60. Which of the following payroll taxes does not have a limit? ✔ans.FIT (Federal Income Tax)
61. The mot economical way to obtain insurance is to: ✔ans.Price-ship with several agents
62. The ________ is found in the bidding documents of a construction contract, under the "Instructions
to Bidders." ✔ans.Reform of bid
63. Employees must provide the contractor with Form W-4: ✔ans.When they start work
64. An employer would issue a 1099 to: ✔ans.A non employee who was paid at least $600 for services
during the year
65. The "Notice of right to cancel" on a home improvement contract is found where? ✔ans.Near the
clients signature
66. A time card includes the day and hours the person worked, as well as: ✔ans.A description of the
work
BUSINESS/FINANCE STUDY EXAM 2
QUESTIONS AND CORRECT
SOLUTIONS
47. Which of the following is considered a direct cost? ✔ans.Payroll tax
48. When a contractor discovers a hazardous material, the contractor must inform the:
✔ans.Homeowner
49. How does a contractor pay for his/her delivery materials? ✔ans.C.O.D.
50. When a sub-contractor does work on a public works contract, the public agency considers the
subcontractor to be: ✔ans.An employee of the contractor
51. You would go to a district court: ✔ans.For an interstate dispute
52. A sole proprietorship has how many members running the company? ✔ans.One
53. Which act establishes the rights of workers to organize into unions and negotiate contracts?
✔ans.National Labor Relations act of 1935
54. If a home solicitation contract is signed on Thursday afternoon, what is the deadline for
cancellation? ✔ans.Monday midnight
55. What is the purpose of OSHA? ✔ans.Helps employers voluntarily follow safety and health laws and
standards
, 56. Which of the following statements is true concerning the use of double form of bonds as surety
regarding a construction contract? ✔ans.It covers separately the interests of the owner and of
subcontractors, material supplies and workmen
57. You must report FICA any withheld income tax (Form 941) every: ✔ans.Three months
58. The best way to reduce insurance cost without reducing risk is to: ✔ans.Compare premiums and
coverage yearly
59. Which of the following is least likely to result in a claim dispute between the contractor and an
owner? ✔ans.Rejection of a sub-contractor
60. Which of the following payroll taxes does not have a limit? ✔ans.FIT (Federal Income Tax)
61. The mot economical way to obtain insurance is to: ✔ans.Price-ship with several agents
62. The ________ is found in the bidding documents of a construction contract, under the "Instructions
to Bidders." ✔ans.Reform of bid
63. Employees must provide the contractor with Form W-4: ✔ans.When they start work
64. An employer would issue a 1099 to: ✔ans.A non employee who was paid at least $600 for services
during the year
65. The "Notice of right to cancel" on a home improvement contract is found where? ✔ans.Near the
clients signature
66. A time card includes the day and hours the person worked, as well as: ✔ans.A description of the
work
