NASCLA BUSINESS LAW CORRECT QUESTIONS &
ANSWERS(GRADED A+)
sole proprietor -
AnswerA form of business ownership is least regulated
partnership -
AnswerUnder which form of business organization are all investors fully liable for all debts of
the business.
S corporation -
Answerowner who is looking for maximum protection from personal liability
leaving something out -
Answerworst possible error in estimating
source documents -
Answerthe paperwork related to purchase order, credit card receipts and so on...
Income Statement -
AnswerA financial statement that reports a company's revenues and expenses and resulting net
income or net loss for a specific period of time.
Balance Sheet -
Answera statement of the assets, liabilities, and capital of a business or other organization at a
particular point in time, detailing the balance of income and expenditure over the preceding
period.
Cash Flow Statement -
AnswerA summary that shows total income and spending for a given time period
Depreciation -
Answerterm use for the method of allocating the cost of an asset over its useful life
168 hours (7 x 24 hours) -
Answernumber of hours in a define Fair Labor Standard Acts workweek
State Income Tax -
Answertaxes deducted solely from employee's wages
Form W-3, Transmittal of Wage and Tax Statements -
AnswerA form completed by the employer to verify the number of W-2s and amounts withheld
as shown on them. This form is sent to the Social Security Administration data processing center
along with copies of each employee's W-2 forms.
FUTA (Federal Unemployment Tax Act) -
AnswerA payroll or employment tax paid solely by the employer based on the salary, usually
,around .6% to cover the unemployment insurance (UI) and job service programs, pay one-half
of the cost of extended unemployment benefits, and provides for a fund from which states may
borrow
, 4 years -
Answerhow long must federal employment tax records must be kept?
establish a basis for future estimates -
Answerone useful outcome of job cost analysis is to
bonds -
Answerwhich of the following is NOT a company overhead cost?
Project overhead costs -
AnswerCan be charged to a specific project Cannot be attributed to labor, materials,
or equipment
4-10% the cost of construction
EX bonds, equipment storage, project office, security, permits,
construction loan -
Answerwhich of the following is a project overhead cost?
allowances -
Answerthe amount of money you plan to use for a certain budget category that are not estimated.
Unit Price Contract -
AnswerA contract in which payment is based on a contractor's quoted price per unit of work
performed and the owner's measurement of the total number of such units installed. This method
is often used when materials and labor are hard to determine.
the supplier must be competitive -
Answerall local contractors should expect their material costs are similar because
basis for the bid -
Answerwhat information do project documents ALWAYS provide?
contract -
Answera binding agreement between two or more persons that is enforceable by law
read and understand the contract -
Answerwhat action is essential before signing a contract?
written agreement prevail over oral agreement -
Answerwhich of the following is an established legal guideline for contract?
the standard form of agreement -
Answerwhich contract document must be sign by both owner and contractor?
turnkey contract -
Answera contract gives the prime contractor responsibility for developing the entire project and
these contracts often increase the income and profit potential to the contractor.
ANSWERS(GRADED A+)
sole proprietor -
AnswerA form of business ownership is least regulated
partnership -
AnswerUnder which form of business organization are all investors fully liable for all debts of
the business.
S corporation -
Answerowner who is looking for maximum protection from personal liability
leaving something out -
Answerworst possible error in estimating
source documents -
Answerthe paperwork related to purchase order, credit card receipts and so on...
Income Statement -
AnswerA financial statement that reports a company's revenues and expenses and resulting net
income or net loss for a specific period of time.
Balance Sheet -
Answera statement of the assets, liabilities, and capital of a business or other organization at a
particular point in time, detailing the balance of income and expenditure over the preceding
period.
Cash Flow Statement -
AnswerA summary that shows total income and spending for a given time period
Depreciation -
Answerterm use for the method of allocating the cost of an asset over its useful life
168 hours (7 x 24 hours) -
Answernumber of hours in a define Fair Labor Standard Acts workweek
State Income Tax -
Answertaxes deducted solely from employee's wages
Form W-3, Transmittal of Wage and Tax Statements -
AnswerA form completed by the employer to verify the number of W-2s and amounts withheld
as shown on them. This form is sent to the Social Security Administration data processing center
along with copies of each employee's W-2 forms.
FUTA (Federal Unemployment Tax Act) -
AnswerA payroll or employment tax paid solely by the employer based on the salary, usually
,around .6% to cover the unemployment insurance (UI) and job service programs, pay one-half
of the cost of extended unemployment benefits, and provides for a fund from which states may
borrow
, 4 years -
Answerhow long must federal employment tax records must be kept?
establish a basis for future estimates -
Answerone useful outcome of job cost analysis is to
bonds -
Answerwhich of the following is NOT a company overhead cost?
Project overhead costs -
AnswerCan be charged to a specific project Cannot be attributed to labor, materials,
or equipment
4-10% the cost of construction
EX bonds, equipment storage, project office, security, permits,
construction loan -
Answerwhich of the following is a project overhead cost?
allowances -
Answerthe amount of money you plan to use for a certain budget category that are not estimated.
Unit Price Contract -
AnswerA contract in which payment is based on a contractor's quoted price per unit of work
performed and the owner's measurement of the total number of such units installed. This method
is often used when materials and labor are hard to determine.
the supplier must be competitive -
Answerall local contractors should expect their material costs are similar because
basis for the bid -
Answerwhat information do project documents ALWAYS provide?
contract -
Answera binding agreement between two or more persons that is enforceable by law
read and understand the contract -
Answerwhat action is essential before signing a contract?
written agreement prevail over oral agreement -
Answerwhich of the following is an established legal guideline for contract?
the standard form of agreement -
Answerwhich contract document must be sign by both owner and contractor?
turnkey contract -
Answera contract gives the prime contractor responsibility for developing the entire project and
these contracts often increase the income and profit potential to the contractor.
