WV BUSINESS LAW PRACTICE EXAM
FOR CONTRACTORS QUESTIONS AND
ANSWERS WITH COMPLETE
SOLUTIONS 100% CORRECT!!!
1. What type of contract requires the contractor to be responsible for both the
engineering and construction of a project?
a. Traditional
b. Design build ✔✔
c. Turn key
d. Concession
2. By what date is an employer required to provide its employees with a W-2?
a. January 31 ✔✔
b. February 15
c. March 31
d. April 15
3. When developing a project schedule, what does WBS stand for?
a. Work breakdown structure ✔✔
b. Work building schedule
c. Wall board system
d. Whole build system
4. Overtime wages are paid at what percentage of the normal wage rate?
c. 150% ✔✔
5. Using the percentage method of withholding, what is the income tax deducted
from an employee's wages that earns $1,500 per pay period, is paid bi-weekly, is
single, and claims no deductions?
a. $82.95
, b. $165.90
c. $194.50 ✔✔
d. $214.50
6. What is the penalty for submitting an IRS payroll tax deposit in the amount of
$5,000 that is 2 days late?
a. $100
b. $250
c. $500
d. $750 -ANSWER ✔✔a. $100
The accounting method that recognizes income and expenses only when money is
received or paid is called:
a. the PCM Method
b. the Accrual method
c. the cash method
d. the cost-comparison method -ANSWER ✔✔c. the Cash method
Employers are required to notify employees of changes in policies affecting all the
following EXCEPT:
a. pay schedules
b vacation allowance
c. health benefits
d. promotion opportunities -ANSWER ✔✔d. promotion opportunities
What is the process for obtaining a contractor license if the existing license has
lapsed? (Do not consider exceptions)
FOR CONTRACTORS QUESTIONS AND
ANSWERS WITH COMPLETE
SOLUTIONS 100% CORRECT!!!
1. What type of contract requires the contractor to be responsible for both the
engineering and construction of a project?
a. Traditional
b. Design build ✔✔
c. Turn key
d. Concession
2. By what date is an employer required to provide its employees with a W-2?
a. January 31 ✔✔
b. February 15
c. March 31
d. April 15
3. When developing a project schedule, what does WBS stand for?
a. Work breakdown structure ✔✔
b. Work building schedule
c. Wall board system
d. Whole build system
4. Overtime wages are paid at what percentage of the normal wage rate?
c. 150% ✔✔
5. Using the percentage method of withholding, what is the income tax deducted
from an employee's wages that earns $1,500 per pay period, is paid bi-weekly, is
single, and claims no deductions?
a. $82.95
, b. $165.90
c. $194.50 ✔✔
d. $214.50
6. What is the penalty for submitting an IRS payroll tax deposit in the amount of
$5,000 that is 2 days late?
a. $100
b. $250
c. $500
d. $750 -ANSWER ✔✔a. $100
The accounting method that recognizes income and expenses only when money is
received or paid is called:
a. the PCM Method
b. the Accrual method
c. the cash method
d. the cost-comparison method -ANSWER ✔✔c. the Cash method
Employers are required to notify employees of changes in policies affecting all the
following EXCEPT:
a. pay schedules
b vacation allowance
c. health benefits
d. promotion opportunities -ANSWER ✔✔d. promotion opportunities
What is the process for obtaining a contractor license if the existing license has
lapsed? (Do not consider exceptions)
