TN BUSINESS AND LAW COMPREHENSIVE EXAM
2025/2026 QUESTIONS WITH SOLUTIONS RATED A+
✔✔Which of the following is not one of the key elements to a contract? - ✔✔counter
offer
✔✔When determining activity duration, it is important to have input from which of the
following? - ✔✔employees
✔✔Which of the following financial statements would one find depreciation? -
✔✔income statement
✔✔A sole proprietor is taxed on - ✔✔ordinary income
✔✔Typically, a direct lienor is one who contracts directly with - ✔✔property owner
✔✔If the contract is ambiguous, the interpretation will go against whom? - ✔✔the party
who wrote the contract
✔✔Of the following, which is not one of the three key functions of a business plan? -
✔✔tax documentation
✔✔(blank) is anything of value - ✔✔consideration
✔✔Which of the following reports demonstrates items completed, in progress, and
outstanding? - ✔✔status reports
✔✔Within how many days after a notice of completion is filed for commercial property,
must a lien claim be filed? - ✔✔30 days
✔✔For public construction contracts funded by the state exceeding $100,000, the
contractor must provide a bond in the amount of (blank) of the contract amount -
✔✔25%
✔✔For I-9 must be kept for at least (blank) years from the date of hire - ✔✔3 years
✔✔The first step in a job-costing system is to provide for which of the following? -
✔✔cost code system
✔✔The (blank) method recognizes income when the employer has done the work, yet
has not received the income - ✔✔accrual
, ✔✔Whenever a partnership licensed as a contractor dissolves, no former member of
the partnership shall further undertake contracting before... - ✔✔filing a new application
with the board and receiving a license
✔✔The (blank) requires to give a 60 day notice prior to the closing of a plant and/or
massive layoffs - ✔✔WARN
✔✔The claims secured by lien for (blank), shall in no case exceed the amount agreed to
be paid by the owner in the owner's contract with original contractor - ✔✔labor done and
materials furnished
✔✔On federal jobs, a performance bond is usually (blank) percent of the contract price -
✔✔100
✔✔The EAP should include... - ✔✔administrator's name
✔✔For a short-term job, the best option is to (blank) equipment - ✔✔rent
✔✔What is the return on total assets if there is a net profit (after taxes) or $16,000 and
total assets of $48,000? - ✔✔1/3
✔✔Engaging in contracting without a license results in which of the following? -
✔✔Class A Misdemeanor
✔✔Failure to abate prior OSHA violations has a penalty amount not to exceed (blank)
for each day the violation continues - ✔✔$7,000
✔✔When the quarter ending is March 31st, FUTA taxes must be paid by? - ✔✔April
30th
✔✔Where would depreciation of equipment be first entered? - ✔✔general journal
✔✔Which of the following is not a general bond requirement? - ✔✔non dollar amount
✔✔Which of the following is a purpose of a business plan? - ✔✔establish goals
✔✔(blank) prohibits firing an employee due to garnished wages - ✔✔wage garnishment
law
✔✔Employees are not motivated from - ✔✔punishment
✔✔Which of the following is not an obligation by the contractor? - ✔✔approval of all
plans
2025/2026 QUESTIONS WITH SOLUTIONS RATED A+
✔✔Which of the following is not one of the key elements to a contract? - ✔✔counter
offer
✔✔When determining activity duration, it is important to have input from which of the
following? - ✔✔employees
✔✔Which of the following financial statements would one find depreciation? -
✔✔income statement
✔✔A sole proprietor is taxed on - ✔✔ordinary income
✔✔Typically, a direct lienor is one who contracts directly with - ✔✔property owner
✔✔If the contract is ambiguous, the interpretation will go against whom? - ✔✔the party
who wrote the contract
✔✔Of the following, which is not one of the three key functions of a business plan? -
✔✔tax documentation
✔✔(blank) is anything of value - ✔✔consideration
✔✔Which of the following reports demonstrates items completed, in progress, and
outstanding? - ✔✔status reports
✔✔Within how many days after a notice of completion is filed for commercial property,
must a lien claim be filed? - ✔✔30 days
✔✔For public construction contracts funded by the state exceeding $100,000, the
contractor must provide a bond in the amount of (blank) of the contract amount -
✔✔25%
✔✔For I-9 must be kept for at least (blank) years from the date of hire - ✔✔3 years
✔✔The first step in a job-costing system is to provide for which of the following? -
✔✔cost code system
✔✔The (blank) method recognizes income when the employer has done the work, yet
has not received the income - ✔✔accrual
, ✔✔Whenever a partnership licensed as a contractor dissolves, no former member of
the partnership shall further undertake contracting before... - ✔✔filing a new application
with the board and receiving a license
✔✔The (blank) requires to give a 60 day notice prior to the closing of a plant and/or
massive layoffs - ✔✔WARN
✔✔The claims secured by lien for (blank), shall in no case exceed the amount agreed to
be paid by the owner in the owner's contract with original contractor - ✔✔labor done and
materials furnished
✔✔On federal jobs, a performance bond is usually (blank) percent of the contract price -
✔✔100
✔✔The EAP should include... - ✔✔administrator's name
✔✔For a short-term job, the best option is to (blank) equipment - ✔✔rent
✔✔What is the return on total assets if there is a net profit (after taxes) or $16,000 and
total assets of $48,000? - ✔✔1/3
✔✔Engaging in contracting without a license results in which of the following? -
✔✔Class A Misdemeanor
✔✔Failure to abate prior OSHA violations has a penalty amount not to exceed (blank)
for each day the violation continues - ✔✔$7,000
✔✔When the quarter ending is March 31st, FUTA taxes must be paid by? - ✔✔April
30th
✔✔Where would depreciation of equipment be first entered? - ✔✔general journal
✔✔Which of the following is not a general bond requirement? - ✔✔non dollar amount
✔✔Which of the following is a purpose of a business plan? - ✔✔establish goals
✔✔(blank) prohibits firing an employee due to garnished wages - ✔✔wage garnishment
law
✔✔Employees are not motivated from - ✔✔punishment
✔✔Which of the following is not an obligation by the contractor? - ✔✔approval of all
plans
