MISSISSIPPI BUSINESS AND LAW
CONTRACTOR EXAM ACTUAL
QUESTIONS AND CORRECT
ANSWERS
contract documents - ANSW-business plan includes all but the following
register business name - ANSW-business is owned by two 50/05 owners and goes by the name of ABC
contracting, what must be done next
Best method for keeping inventory low - ANSW-plan material delivery as close to use as possible
A contractor files a 5000 dollar lien against owner. Owner offers 2000 to contractor. Contractor declines
offer and goes to court. Who is responsible for attorney fees? - ANSW-contractor
Liens must be filed within - ANSW-90 days since last supplying material or labor
It cost 50 dollars to produce product A, 150 dollars to produce product B, and 375 dollars to produce
product C. We must produce 27 of product A, 56 of B, and 78 of C. We want a 30% mark up. What is the
total cost? - ANSW-50,700 (27 x 50 = 1350) (56 x 150 = 8400) (78 X 375 = 29,250)
(1350 + 8400 + 29250 = 39000 X .30 = 11,700 + 39000 = 50,700
Before a contractor signs to indemnity( security or protection against a loss or other financial burden),
what should he do - ANSW-review his liability insurance policy
Unemployment insurance contributions are paid on what amount of employees wages - ANSW-first
$7000
of annual wages
Before Bidding - ANSW-make sure you can be competitive with other bidders
When does cash basis of accounting method record income - - ANSW-when cash is received
Most accurate method for estimating labor - ANSW-published labor tables
importance of cash flow schedule - ANSW-shows working capital needs any given time during project
Job can be done by two people in 40 hours. How many days will it take if there are 5 people doing the
job - ANSW-2 days
Most important reason for always preparing proper contract - ANSW-to avoid disputes
What is best method to control solvents and chemicals - ANSW-keep in 1 location
Employer must provide W-2i form no later than - ANSW-Jan. 31
When must the contractor be aware of drainage problems - ANSW-at the start of the project and
throughout construction
CONTRACTOR EXAM ACTUAL
QUESTIONS AND CORRECT
ANSWERS
contract documents - ANSW-business plan includes all but the following
register business name - ANSW-business is owned by two 50/05 owners and goes by the name of ABC
contracting, what must be done next
Best method for keeping inventory low - ANSW-plan material delivery as close to use as possible
A contractor files a 5000 dollar lien against owner. Owner offers 2000 to contractor. Contractor declines
offer and goes to court. Who is responsible for attorney fees? - ANSW-contractor
Liens must be filed within - ANSW-90 days since last supplying material or labor
It cost 50 dollars to produce product A, 150 dollars to produce product B, and 375 dollars to produce
product C. We must produce 27 of product A, 56 of B, and 78 of C. We want a 30% mark up. What is the
total cost? - ANSW-50,700 (27 x 50 = 1350) (56 x 150 = 8400) (78 X 375 = 29,250)
(1350 + 8400 + 29250 = 39000 X .30 = 11,700 + 39000 = 50,700
Before a contractor signs to indemnity( security or protection against a loss or other financial burden),
what should he do - ANSW-review his liability insurance policy
Unemployment insurance contributions are paid on what amount of employees wages - ANSW-first
$7000
of annual wages
Before Bidding - ANSW-make sure you can be competitive with other bidders
When does cash basis of accounting method record income - - ANSW-when cash is received
Most accurate method for estimating labor - ANSW-published labor tables
importance of cash flow schedule - ANSW-shows working capital needs any given time during project
Job can be done by two people in 40 hours. How many days will it take if there are 5 people doing the
job - ANSW-2 days
Most important reason for always preparing proper contract - ANSW-to avoid disputes
What is best method to control solvents and chemicals - ANSW-keep in 1 location
Employer must provide W-2i form no later than - ANSW-Jan. 31
When must the contractor be aware of drainage problems - ANSW-at the start of the project and
throughout construction
