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NASCLA CONTRACTORS GUIDE
(VIRGINIA 8TH EDITION) & VIRGINIA
UNIFORM STATEWIDE BUILDING CODE
"USBC" (2000 EDITION) QUESTIONS
WITH DETAILED VERIFIED ANSWERS
What are some of the advantages of a sole proprietor? Ans: Business
can be sold at will
Freedom in Decision Making Process
Sole Ownership of Profits
Low startup cost
Simple Ownership Form
Minimal Legal Restriction
What are some of the disadvantages of a Sole Proprietor? Ans: Less
Available capital
Unlimited Personal Liability
Possible difficulty obtaining long term financing
dissolution of the business in the event of the owner's death
This is the relationship between two or more persons who join to carry on
a trade or business. Each person contributes money, property,labor, or
skill and each partner expects to share in the profits and losses of the
business. Ans: Is classified as a Partnership
What are the two different types of partnerships? Ans: General
Partnership & Limited Partnership
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This partnership consists of one or more general partners and one or
more limited partners. Limited partners have limited Liability in the
company. In this partnership the partners have no personal liability for
the business partnership. They are liable only for the previously agreed-
upon contribution to or investment in the business. Ans: Limited
Partnership
This partnership consists of general partners that own the assets of the
company just as individual own assets in a sole proprietorship. In this
partnership all owners have personal and unlimited liability for all actions
undertaken in the name of the business including debt. Each partner is
responsible for the acts of others partners when they act in the name of
the business. Ans: General Partnership
What are some of the disadvantages of a general partnership? Ans:
Unlimited personal Liability of general Partners
Multiple Decision Makers
Limited lIfe of the Business
Changes of partners or partnership agreement may be difficult
Partnership dissolves in the event of the death of a general Partner
The Virginia State statute requires that prior to a joint venture engaging
in or offering to engage in contracting work in Virginia Ans: Each
contracting party of the joint venture shall be properly licensed under the
Virginia licensing law or a proper contractor's license shall be obtained in
the name of the joint venture.
What is a joint venture? Ans: This is a special business arrangement
that exists when two or more companies joint undertake a specific
project.
What is the purpose of Licensing & why is it required? Ans: A major
purpose of licensing is to protect the health, safety, and welfare of the
public. Licensing establishes entrance requirements standards of practice
and disciplinary authority to protect the public from unqualified
incompetent and unethical contractors.
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It was established to regulate businesses that construct or improve
facilities on property owned by others. Ans: Virginia Board for
Contractors
The Board is composed of 15 governor-appointed members who serve 4
years and includes what? Ans: - Seven Licensed Contractor members
- 3 representatives from the tradesman Licensure Program
-one local building official member
What is one of the exemptions that exists in the virginia Licensing law?
Ans: Any material supplier who renders advice concerning use of
products sold and who does not provide construction or installation
services.
What is the total value of a single contract or project for a License Class
A? Ans: $120,000 or More for a single contract or project
What is the total value of all projects in 12 month period for a class A
license class? Ans: $750,000 or More
How are license classes determined? Ans: License classes are
determined by Net Worth.
The specific minimum net worth requirements for class A is Ans:
$45,000 or more
The specific minimum net worth requirements for class B is Ans:
$15,000 or more
The specific minimum net worth requirements for class C is Ans: No net
worth requirement
How long is the original license issued for? Ans: Orginal Licenses expired
two years from the last day of the month in which they were issued.
What must you do to renew your license? Ans: To renew the license, the
license holder must file a completed renewal form and submit appropriate
fees within 30days of the license expiration date. Applicants for renewal
NASCLA CONTRACTORS GUIDE
(VIRGINIA 8TH EDITION) & VIRGINIA
UNIFORM STATEWIDE BUILDING CODE
"USBC" (2000 EDITION) QUESTIONS
WITH DETAILED VERIFIED ANSWERS
What are some of the advantages of a sole proprietor? Ans: Business
can be sold at will
Freedom in Decision Making Process
Sole Ownership of Profits
Low startup cost
Simple Ownership Form
Minimal Legal Restriction
What are some of the disadvantages of a Sole Proprietor? Ans: Less
Available capital
Unlimited Personal Liability
Possible difficulty obtaining long term financing
dissolution of the business in the event of the owner's death
This is the relationship between two or more persons who join to carry on
a trade or business. Each person contributes money, property,labor, or
skill and each partner expects to share in the profits and losses of the
business. Ans: Is classified as a Partnership
What are the two different types of partnerships? Ans: General
Partnership & Limited Partnership
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This partnership consists of one or more general partners and one or
more limited partners. Limited partners have limited Liability in the
company. In this partnership the partners have no personal liability for
the business partnership. They are liable only for the previously agreed-
upon contribution to or investment in the business. Ans: Limited
Partnership
This partnership consists of general partners that own the assets of the
company just as individual own assets in a sole proprietorship. In this
partnership all owners have personal and unlimited liability for all actions
undertaken in the name of the business including debt. Each partner is
responsible for the acts of others partners when they act in the name of
the business. Ans: General Partnership
What are some of the disadvantages of a general partnership? Ans:
Unlimited personal Liability of general Partners
Multiple Decision Makers
Limited lIfe of the Business
Changes of partners or partnership agreement may be difficult
Partnership dissolves in the event of the death of a general Partner
The Virginia State statute requires that prior to a joint venture engaging
in or offering to engage in contracting work in Virginia Ans: Each
contracting party of the joint venture shall be properly licensed under the
Virginia licensing law or a proper contractor's license shall be obtained in
the name of the joint venture.
What is a joint venture? Ans: This is a special business arrangement
that exists when two or more companies joint undertake a specific
project.
What is the purpose of Licensing & why is it required? Ans: A major
purpose of licensing is to protect the health, safety, and welfare of the
public. Licensing establishes entrance requirements standards of practice
and disciplinary authority to protect the public from unqualified
incompetent and unethical contractors.
, Page | 3
It was established to regulate businesses that construct or improve
facilities on property owned by others. Ans: Virginia Board for
Contractors
The Board is composed of 15 governor-appointed members who serve 4
years and includes what? Ans: - Seven Licensed Contractor members
- 3 representatives from the tradesman Licensure Program
-one local building official member
What is one of the exemptions that exists in the virginia Licensing law?
Ans: Any material supplier who renders advice concerning use of
products sold and who does not provide construction or installation
services.
What is the total value of a single contract or project for a License Class
A? Ans: $120,000 or More for a single contract or project
What is the total value of all projects in 12 month period for a class A
license class? Ans: $750,000 or More
How are license classes determined? Ans: License classes are
determined by Net Worth.
The specific minimum net worth requirements for class A is Ans:
$45,000 or more
The specific minimum net worth requirements for class B is Ans:
$15,000 or more
The specific minimum net worth requirements for class C is Ans: No net
worth requirement
How long is the original license issued for? Ans: Orginal Licenses expired
two years from the last day of the month in which they were issued.
What must you do to renew your license? Ans: To renew the license, the
license holder must file a completed renewal form and submit appropriate
fees within 30days of the license expiration date. Applicants for renewal
