NASCLA Contractors Guide UPDATED
Exam Questions and CORRECT Answers
market analysis - CORRECT ANSWER major competitors
Financial Plan - CORRECT ANSWER projection
Advantage of a Sole Proprietorship - CORRECT ANSWER Freedom in decision-making
process
Disadvantage of a Sole Proprietorship - CORRECT ANSWER Unlimited personal liability
Partnership - CORRECT 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 - CORRECT ANSWER Unlimited personal
liability of general partners.
Partnership dissolves in the event of the death of a general partner.
Purpose of Licensing - CORRECT ANSWER A major purpose of licensing is to protect
the health, safety, and welfare of the public
VA Board for Contractors - CORRECT ANSWER 7 licensed contractor members
Licensing Requirements: Exemptions - CORRECT ANSWER Any material supplier
Class A - CORRECT ANSWER Single contract - $120,000 or more
12-month - $750,000 or more
, License classes are determined by - CORRECT ANSWER Net worth
Class A
Class B - CORRECT ANSWER $45,000
$15,000
License Renewals - CORRECT 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 - CORRECT ANSWER change of designated employee 90 days
change of a business/trade name 30 days
change of address 30 days
Prohibited act - CORRECT ANSWER Failure to maintain all documents relating to
contract 5 years
Recovery Fund - CORRECT 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
Exam Questions and CORRECT Answers
market analysis - CORRECT ANSWER major competitors
Financial Plan - CORRECT ANSWER projection
Advantage of a Sole Proprietorship - CORRECT ANSWER Freedom in decision-making
process
Disadvantage of a Sole Proprietorship - CORRECT ANSWER Unlimited personal liability
Partnership - CORRECT 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 - CORRECT ANSWER Unlimited personal
liability of general partners.
Partnership dissolves in the event of the death of a general partner.
Purpose of Licensing - CORRECT ANSWER A major purpose of licensing is to protect
the health, safety, and welfare of the public
VA Board for Contractors - CORRECT ANSWER 7 licensed contractor members
Licensing Requirements: Exemptions - CORRECT ANSWER Any material supplier
Class A - CORRECT ANSWER Single contract - $120,000 or more
12-month - $750,000 or more
, License classes are determined by - CORRECT ANSWER Net worth
Class A
Class B - CORRECT ANSWER $45,000
$15,000
License Renewals - CORRECT 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 - CORRECT ANSWER change of designated employee 90 days
change of a business/trade name 30 days
change of address 30 days
Prohibited act - CORRECT ANSWER Failure to maintain all documents relating to
contract 5 years
Recovery Fund - CORRECT 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
