CSLB BUSINESS & LAW EXAM
QUESTIONS WITH CORRECT DETAILED
ANSWERS
When the worker doesn't set his own hours. - Answer-When the employer has direct
control over the work being performed.
If an employee is 20 minutes late for work, the employer may:
deduct a half hour's wage
deduct an hour's wage
deduct for 20 minutes only
not deduct from wages - Answer-deduct a half hour's wage
Is the Form 1099-MISC required for a corporation that provided $600 in services as an
independent contractor during the calendar year?
Yes. Form 1099-MISC is required because the corporation is an independent contractor
that was paid $500 or more.
No. Form 1099-MISC is not required unless an independent contractor is paid over
$1,000 in a calendar year.
No. Form 1099-MISC is not required for corporations with certain exceptions.
Yes. Form 1099-MISC is required for all individuals, partnerships, and corporations that
provided services as an independent contractor during the calendar year. - Answer-No.
Form 1099-MISC is not required for corporations with certain exceptions.
The Mechanics Lien Warning is for the protection of:
the owner.
the contractor.
the contractor's employees.
all of the above. - Answer-the owner.
,When an employee who is not hired for a specified period quits, the employee must be
paid:
within 5 days of quitting.
within 72 hours of quitting.
half immediately with the balance due within 30 days.
immediately. - Answer-within 72 hours of quitting.
Which of the following is an asset on a Balance Sheet?
income.
Accounts Receivable.
Accounts Payable.
equity. - Answer-Accounts Receivable.
Which of the following is least important in preparing a bid for a home construction
project?
cost of permits
cost of materials
cost of labor
overhead and profit - Answer-cost of permits
When can a contractor accept a job where the owner does not have a pre-approved
loan?
When there is an emergency situation and the owner has a high income and good
credit.
When the owner has bad credit.
When the owner has an amount in the bank equal to the contract cost.
When the owner seems kind and has an honest reputation. - Answer-When there is an
emergency situation and the owner has a high income and good credit.
, What is the maximum number of hours a minor can work on the day before a school
day?
6
7
8
9 - Answer-8
If an employee is fired as a result of a garnishment, he must notify _____ within _____
days, if he intends to file a claim disputing lost wages following the firing.
employer ... 30
employer ... 60
Labor Commissioner ... 30
Labor Commissioner ... 60 - Answer-employer ... 30
What is the biggest problem facing new contractors when trying to obtain a performance
or bid bond?
they don't have a broker
no prior track record
poor credit
none of the above - Answer-no prior track record
On a small job, what is the best way to make an efficient schedule?
bar chart
critical path method (CPM)
talk to suppliers to arrange around their schedules
talk to subs to arrange around their schedules - Answer-bar chart
The best two methods of keeping track of job expenses are:
general ledger and payroll journal
QUESTIONS WITH CORRECT DETAILED
ANSWERS
When the worker doesn't set his own hours. - Answer-When the employer has direct
control over the work being performed.
If an employee is 20 minutes late for work, the employer may:
deduct a half hour's wage
deduct an hour's wage
deduct for 20 minutes only
not deduct from wages - Answer-deduct a half hour's wage
Is the Form 1099-MISC required for a corporation that provided $600 in services as an
independent contractor during the calendar year?
Yes. Form 1099-MISC is required because the corporation is an independent contractor
that was paid $500 or more.
No. Form 1099-MISC is not required unless an independent contractor is paid over
$1,000 in a calendar year.
No. Form 1099-MISC is not required for corporations with certain exceptions.
Yes. Form 1099-MISC is required for all individuals, partnerships, and corporations that
provided services as an independent contractor during the calendar year. - Answer-No.
Form 1099-MISC is not required for corporations with certain exceptions.
The Mechanics Lien Warning is for the protection of:
the owner.
the contractor.
the contractor's employees.
all of the above. - Answer-the owner.
,When an employee who is not hired for a specified period quits, the employee must be
paid:
within 5 days of quitting.
within 72 hours of quitting.
half immediately with the balance due within 30 days.
immediately. - Answer-within 72 hours of quitting.
Which of the following is an asset on a Balance Sheet?
income.
Accounts Receivable.
Accounts Payable.
equity. - Answer-Accounts Receivable.
Which of the following is least important in preparing a bid for a home construction
project?
cost of permits
cost of materials
cost of labor
overhead and profit - Answer-cost of permits
When can a contractor accept a job where the owner does not have a pre-approved
loan?
When there is an emergency situation and the owner has a high income and good
credit.
When the owner has bad credit.
When the owner has an amount in the bank equal to the contract cost.
When the owner seems kind and has an honest reputation. - Answer-When there is an
emergency situation and the owner has a high income and good credit.
, What is the maximum number of hours a minor can work on the day before a school
day?
6
7
8
9 - Answer-8
If an employee is fired as a result of a garnishment, he must notify _____ within _____
days, if he intends to file a claim disputing lost wages following the firing.
employer ... 30
employer ... 60
Labor Commissioner ... 30
Labor Commissioner ... 60 - Answer-employer ... 30
What is the biggest problem facing new contractors when trying to obtain a performance
or bid bond?
they don't have a broker
no prior track record
poor credit
none of the above - Answer-no prior track record
On a small job, what is the best way to make an efficient schedule?
bar chart
critical path method (CPM)
talk to suppliers to arrange around their schedules
talk to subs to arrange around their schedules - Answer-bar chart
The best two methods of keeping track of job expenses are:
general ledger and payroll journal
