Mississippi Business and Law
Contractor Exam Q’s and A’s
Contract documents - <CORRECT ANSWER >>business plan includes all but the following
Register business name - <CORRECT ANSWER >>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 - <CORRECT ANSWER >>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? - <CORRECT ANSWER
>>contractor
Liens must be filed within - <CORRECT ANSWER >>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? - <CORRECT ANSWER >>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 - <CORRECT ANSWER >>review his liability insurance policy
Unemployment insurance contributions are paid on what amount of employees wages -
<CORRECT ANSWER >>first $7000
Of annual wages
, Before Bidding - <CORRECT ANSWER >>make sure you can be competitive with other bidders
When does cash basis of accounting method record income - - <CORRECT ANSWER >>when
cash is received
Most accurate method for estimating labor - <CORRECT ANSWER >>published labor tables
Importanceiiofiicashiiflowiischeduleii-
II<CORRECTIIANSWERII>>showsiiworkingiicapitaliineedsiianyiigiveniitimeiiduringiiproject
Jobiicaniibeiidoneiibyiitwoiipeopleiiinii40iihours.iihowiimanyiidaysiiwilliiitiitakeiiifiithereiiareii5iipeopleiidoi
ngiitheiijobii-II<CORRECTIIANSWERII>>2iidays
Mostiiimportantiireasoniiforiialwaysiipreparingiiproperiicontractii-
II<CORRECTIIANSWERII>>toiiavoidiidisputes
Whatiiisiibestiimethodiitoiicontroliisolventsiiandiichemicalsii-
II<CORRECTIIANSWERII>>keepiiinii1iilocation
Employeriimustiiprovideiiw-2iiiformiinoiilateriithanii-II<CORRECTIIANSWERII>>Jan.II31
Wheniimustiitheiicontractoriibeiiawareiiofiidrainageiiproblemsii-
II<CORRECTIIANSWERII>>atiitheiistartiiofiitheiiprojectiiandiithroughoutiiconstruction
Buildersiimayiilimitiiliensiibyiisubcontractorsiiandiisuppliersiibyii-
II<CORRECTIIANSWERII>>filingiiaiisuretyiibond
Howiimanyiihoursiiofiipaidiivacationiidoesiifederaliilawiirequireii-II<CORRECTIIANSWERII>>0
Contractor Exam Q’s and A’s
Contract documents - <CORRECT ANSWER >>business plan includes all but the following
Register business name - <CORRECT ANSWER >>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 - <CORRECT ANSWER >>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? - <CORRECT ANSWER
>>contractor
Liens must be filed within - <CORRECT ANSWER >>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? - <CORRECT ANSWER >>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 - <CORRECT ANSWER >>review his liability insurance policy
Unemployment insurance contributions are paid on what amount of employees wages -
<CORRECT ANSWER >>first $7000
Of annual wages
, Before Bidding - <CORRECT ANSWER >>make sure you can be competitive with other bidders
When does cash basis of accounting method record income - - <CORRECT ANSWER >>when
cash is received
Most accurate method for estimating labor - <CORRECT ANSWER >>published labor tables
Importanceiiofiicashiiflowiischeduleii-
II<CORRECTIIANSWERII>>showsiiworkingiicapitaliineedsiianyiigiveniitimeiiduringiiproject
Jobiicaniibeiidoneiibyiitwoiipeopleiiinii40iihours.iihowiimanyiidaysiiwilliiitiitakeiiifiithereiiareii5iipeopleiidoi
ngiitheiijobii-II<CORRECTIIANSWERII>>2iidays
Mostiiimportantiireasoniiforiialwaysiipreparingiiproperiicontractii-
II<CORRECTIIANSWERII>>toiiavoidiidisputes
Whatiiisiibestiimethodiitoiicontroliisolventsiiandiichemicalsii-
II<CORRECTIIANSWERII>>keepiiinii1iilocation
Employeriimustiiprovideiiw-2iiiformiinoiilateriithanii-II<CORRECTIIANSWERII>>Jan.II31
Wheniimustiitheiicontractoriibeiiawareiiofiidrainageiiproblemsii-
II<CORRECTIIANSWERII>>atiitheiistartiiofiitheiiprojectiiandiithroughoutiiconstruction
Buildersiimayiilimitiiliensiibyiisubcontractorsiiandiisuppliersiibyii-
II<CORRECTIIANSWERII>>filingiiaiisuretyiibond
Howiimanyiihoursiiofiipaidiivacationiidoesiifederaliilawiirequireii-II<CORRECTIIANSWERII>>0
