TN BUSINESS AND LAW FINAL PAPER 2025/2026
QUESTIONS WITH SOLUTIONS RATED A+
✔✔Naming your business - ✔✔the name you choose affects your customers'
impression of your company. The individuality of the name affects future trademarks
and service marks
✔✔Purpose of licensing - ✔✔to protect the health, safety, and welfare of the public
✔✔What is All-Risk builder's Risk Insurance? - ✔✔a form of property insurance that
covers property owners and builders for buildings under construction
✔✔Named peril builders' risk insurance - ✔✔typical named peril policies are written for
fire and lightening but can also include events such as wind damage, explosion, water
damage, terrorism, or earthquake
✔✔What is inland marine/equipment theft insurance? - ✔✔type of property insurance
that you can purchase for your tools and equipment
equipment theft increases cost of insurance premiums, and if it happens often, you
might find it difficult t obtain coverage
✔✔What is an equipment floater policy? - ✔✔a type of inland marine insurance
the coverage provided is for direct physical loss to the equipment and is designed to
cover mobile equipment while it is stored on premises, in transit, or at temporary
locations or jobsites
✔✔What is transportation floater and motor truck cargo insurance? - ✔✔protects the
transporter in the event of damaged or lost freight
✔✔What 4 types of injuries does Commercial General Liability (CGL) cover? - ✔✔-
bodily injury that results in actual physical damage or loss for individuals who are not
employees
-damage or loss to property not belonging to the business
-personal injury, including slander or damage to reputation
-advertising injury, including charges of negligence that result from promotion of goods
or services
✔✔What is Director's and Officer's (D and O) Liability Insurance? - ✔✔protects directors
and officers from liability due to actions connected with their corporate positions
this insurance does not cover intentional or illegal acts
,✔✔What is professional liability insurance? - ✔✔sometimes called errors and omissions
insurance, protects contractors from negligence resulting from errors or omissions of
designers and architects
✔✔What does Unemployment Insurance do? - ✔✔they provide unemployment benefits
to eligible workers who become unemployed through no fault of their own and meet
certain other eligibility requirements
✔✔What is a bond? - ✔✔a surety bond is a risk transfer mechanism between a surety
bonding company, the contractor, and the project owner
✔✔What is a bid bond? - ✔✔guarantees that the contractor, if awarded the job, will do
work at the submitted bid price, enter into a contract with the owner, and furnish the
required performance and payments bond
✔✔What is a performance bond? - ✔✔guarantees that the contractor will complete a
contract within its time frame and conditions
✔✔What is a payment bond? - ✔✔guarantees subcontractors and suppliers that they
will be paid for the work if they perform properly under the contract
✔✔What is a maintenance bond? - ✔✔guarantees that for a slated period, typically for
one year, no defective workmanship or material will appear in the completed project
✔✔Some of the items the surety company will evaluate to make this determination
include: - ✔✔-good references
-ability to meet current and future obligations
-experience matching contract requirements
-necessary equipment to complete the work
-financial stability
-good credit
-established bank relationship and line of credit
✔✔What is the Miller Act? - ✔✔the current law requiring performance and payment
bonds on all federal construction projects valued at greater than $100,000
✔✔What amount is a performance bond required in? - ✔✔the amount that the
contracting officer regards as adequate. The bond is normally 100 percent of the
contracted price
✔✔What is the Construction Industry Payment Protection Act of 1999? - ✔✔waivers of
miller act payment bond protections are void before the work begins
✔✔Four Time Management Tips - ✔✔-prioritize tasks daily
, -delegate effectively when possible
-use checklists and calendars (find a time management system that works best for you)
-do not procrastinate
✔✔What is delegation? - ✔✔a way of developing your employees and building a solid
team. giving your employees increased responsibility builds their self confidence,
provides motivation, and makes them more productive and loyal. it gives you the
chance to concentrate strategically on running your own business
✔✔What are ethics? - ✔✔behaving in a trustworthy, fair, honest and respectful manner
toward everyone with whom you interact. Your core values serve as your moral
compass and guide this standard
✔✔In regards to business ethics, studies say... - ✔✔top management has the strongest
influence on employees' ethical behavior. if top managers demonstrate unethical
behavior, employees are likely to do the same
✔✔Technological tools increase efficiency and aid in various tasks, such as: - ✔✔-
estimating and bidding
-accounting
-job costing
-scheduling
-construction management
✔✔The purpose of marketing: - ✔✔to bring in new customers and retain current
customers. a good marketing program helps ensure a steady flow of leads and
customers and, more important, a steady flow of incoming cash
✔✔Questions to ask yourself when maximizing your marketing potential: - ✔✔-what is
the vision for my business?
-who are my customers?
-what is the best way to reach these customers?
-what is my competitive advantage?
-what is the best way to promote my products and services?
-what will my marketing efforts cost?
-how much revenue do I expect to gain as a result of marketing efforts?
-what growth opportunities exist in my industry?
✔✔A good logo design should be: - ✔✔-simple and easy to remember
-attractive in color and black and white
-limited to one or two colors
-representative of our company identity
-scalable up or down and attractive in any size
QUESTIONS WITH SOLUTIONS RATED A+
✔✔Naming your business - ✔✔the name you choose affects your customers'
impression of your company. The individuality of the name affects future trademarks
and service marks
✔✔Purpose of licensing - ✔✔to protect the health, safety, and welfare of the public
✔✔What is All-Risk builder's Risk Insurance? - ✔✔a form of property insurance that
covers property owners and builders for buildings under construction
✔✔Named peril builders' risk insurance - ✔✔typical named peril policies are written for
fire and lightening but can also include events such as wind damage, explosion, water
damage, terrorism, or earthquake
✔✔What is inland marine/equipment theft insurance? - ✔✔type of property insurance
that you can purchase for your tools and equipment
equipment theft increases cost of insurance premiums, and if it happens often, you
might find it difficult t obtain coverage
✔✔What is an equipment floater policy? - ✔✔a type of inland marine insurance
the coverage provided is for direct physical loss to the equipment and is designed to
cover mobile equipment while it is stored on premises, in transit, or at temporary
locations or jobsites
✔✔What is transportation floater and motor truck cargo insurance? - ✔✔protects the
transporter in the event of damaged or lost freight
✔✔What 4 types of injuries does Commercial General Liability (CGL) cover? - ✔✔-
bodily injury that results in actual physical damage or loss for individuals who are not
employees
-damage or loss to property not belonging to the business
-personal injury, including slander or damage to reputation
-advertising injury, including charges of negligence that result from promotion of goods
or services
✔✔What is Director's and Officer's (D and O) Liability Insurance? - ✔✔protects directors
and officers from liability due to actions connected with their corporate positions
this insurance does not cover intentional or illegal acts
,✔✔What is professional liability insurance? - ✔✔sometimes called errors and omissions
insurance, protects contractors from negligence resulting from errors or omissions of
designers and architects
✔✔What does Unemployment Insurance do? - ✔✔they provide unemployment benefits
to eligible workers who become unemployed through no fault of their own and meet
certain other eligibility requirements
✔✔What is a bond? - ✔✔a surety bond is a risk transfer mechanism between a surety
bonding company, the contractor, and the project owner
✔✔What is a bid bond? - ✔✔guarantees that the contractor, if awarded the job, will do
work at the submitted bid price, enter into a contract with the owner, and furnish the
required performance and payments bond
✔✔What is a performance bond? - ✔✔guarantees that the contractor will complete a
contract within its time frame and conditions
✔✔What is a payment bond? - ✔✔guarantees subcontractors and suppliers that they
will be paid for the work if they perform properly under the contract
✔✔What is a maintenance bond? - ✔✔guarantees that for a slated period, typically for
one year, no defective workmanship or material will appear in the completed project
✔✔Some of the items the surety company will evaluate to make this determination
include: - ✔✔-good references
-ability to meet current and future obligations
-experience matching contract requirements
-necessary equipment to complete the work
-financial stability
-good credit
-established bank relationship and line of credit
✔✔What is the Miller Act? - ✔✔the current law requiring performance and payment
bonds on all federal construction projects valued at greater than $100,000
✔✔What amount is a performance bond required in? - ✔✔the amount that the
contracting officer regards as adequate. The bond is normally 100 percent of the
contracted price
✔✔What is the Construction Industry Payment Protection Act of 1999? - ✔✔waivers of
miller act payment bond protections are void before the work begins
✔✔Four Time Management Tips - ✔✔-prioritize tasks daily
, -delegate effectively when possible
-use checklists and calendars (find a time management system that works best for you)
-do not procrastinate
✔✔What is delegation? - ✔✔a way of developing your employees and building a solid
team. giving your employees increased responsibility builds their self confidence,
provides motivation, and makes them more productive and loyal. it gives you the
chance to concentrate strategically on running your own business
✔✔What are ethics? - ✔✔behaving in a trustworthy, fair, honest and respectful manner
toward everyone with whom you interact. Your core values serve as your moral
compass and guide this standard
✔✔In regards to business ethics, studies say... - ✔✔top management has the strongest
influence on employees' ethical behavior. if top managers demonstrate unethical
behavior, employees are likely to do the same
✔✔Technological tools increase efficiency and aid in various tasks, such as: - ✔✔-
estimating and bidding
-accounting
-job costing
-scheduling
-construction management
✔✔The purpose of marketing: - ✔✔to bring in new customers and retain current
customers. a good marketing program helps ensure a steady flow of leads and
customers and, more important, a steady flow of incoming cash
✔✔Questions to ask yourself when maximizing your marketing potential: - ✔✔-what is
the vision for my business?
-who are my customers?
-what is the best way to reach these customers?
-what is my competitive advantage?
-what is the best way to promote my products and services?
-what will my marketing efforts cost?
-how much revenue do I expect to gain as a result of marketing efforts?
-what growth opportunities exist in my industry?
✔✔A good logo design should be: - ✔✔-simple and easy to remember
-attractive in color and black and white
-limited to one or two colors
-representative of our company identity
-scalable up or down and attractive in any size
