Nevada CMS Exam Prep Construction Business & Law
Manual- Legal Structures, Project Management, &
Scheduling (2026)
1. MBE (pg 3 ): Minority Business Enterprise
2. MBE Requirements (pg 3): Company owned at least 51%, driver's license to prove ethnicity, financial info
to prove independence from any non-minority, and a history of work in the area of certification, including proof that
the minority is the license holder and the qualifier for the company
3. Corporation, Limited Liability Company (LLC), or Limited Partnership (pg 3): In
most states, businesses choose to declare themselves a....
4. The Secretary of State (pg 3): Corporations, Limited Liability Company (LLC), or Limited Partnerships
file information with the state, typically....
5. Sole Proprietorship (pg 4): The simplest form of business organization, in which the owner is the
business. The owner reports business income on his or her personal income tax return through a Schedule C and
is legally responsible for all debts and obligations incurred by the business.
6. General Partnership (pg 5): partnership in which partners share equally in both responsibility and
liability. Partnership is based on written agreement
7. Joint Venture (pg 5): A general partnership is typically formed to carry out a particular business transaction
or project rather than one intended to continue indefinitely.
8. Limited Partnership (pg 5): One or more general partners manage the business while limited partners
who assume no active role in running the business, contribute capital and share the profits.
9. General Partners (pg 5): Manage the business in a Limited Partnership
10. Limited Partner (pg 5 & 6): Has no active role running the business but contribute capital and share
in the profits in a Limited Partnership. Encourages investors to invest while limiting their risk to the capital they have
contributed.
11. Limited Partnership (pg. 5): is a separate legal entity that does not pay income tax on its annual taxable
income. Rather, taxable income is passed through to the owners who pay the taxes on their individual tax returns.
12. S-Corporation ( pg 7): Profits and losses are passed through the corporation and are then reported on
the individual tax returns of the shareholders who own the business. Same basic pass-through treatment given to
,partnerships.
13. Operating Agreement (pg 7): Legal document that defines the roles, rights, and responsibilities of
the members (owners), and sets the rules for how the company is managed and how decisions are made.
14. Main Headings of Business Plan (pg 10): Description and Goals of the Business; Markets and
Marketing; Finances; and, Management.
15. License holder (pg 11): Contractor's Board will have the responsible for all construc-
tion, business and financial activities related to contracting.
, 16. Reciprocity (pg 11): a licensee who has been disciplined for an activity in one jurisdiction could also be
restricted by another Jurisdiction.
17. What is one responsibility of a Project Manager regarding the project bud-
get?: Preparing and overseeing the project budget
18. What is one responsibility of a Project Manager regarding the production
schedule?: Preparing and overseeing the production schedule
19. What does a Project Manager submit related to financials?: Submitting pay reports
20. What is a task that involves changes in a project?: Handling change orders
21. What is required for the construction process that a Project Manager ac-
quires?: Acquiring shop drawings
22. What is one duty of a Project Superintendent? (pg 15): Being responsible for on-site
activities, including quality control.
23. What is another duty of a Project Superintendent? (pg 15): Supervising workers.
24. What is the responsibility of a Project Superintendent regarding subcontrac-
tors? (pg 15): Coordinating work with subcontractors and utility companies.
25. What does a Project Superintendent oversee related to materials? (pg 15): -
Overseeing materials distribution and storage.
26. What type of notices does a Project Superintendent initiate? (pg 15): Notices for
claims for extra time or work.
27. Float time (pg 20): The time that an activity can float before the timing becomes critical to the project
completion date
28. Types of Schedules (pg 20): List and Time Scale (Bar Chart)
29. Time Scale (Bar Chart) (pg 21): denotes when activities are scheduled and their anticipated duration
by graphically showing the starting and finishing times for individual tasks that make up the project.
30. Time Scale (Bar Chart) Drawback (pg 21): Fails to show the interrelationships among the various
activities
31. CPM (pg 22): Critical Path Method
32. Critical Path Method (CPM) (pg 22): The standard method of scheduling projects today; the
shortest duration for an activity or series of activities
33. What does a CPM Schedule take into account? (pg 22): The relationships of various
activities that must be completed during the course of the project.
Manual- Legal Structures, Project Management, &
Scheduling (2026)
1. MBE (pg 3 ): Minority Business Enterprise
2. MBE Requirements (pg 3): Company owned at least 51%, driver's license to prove ethnicity, financial info
to prove independence from any non-minority, and a history of work in the area of certification, including proof that
the minority is the license holder and the qualifier for the company
3. Corporation, Limited Liability Company (LLC), or Limited Partnership (pg 3): In
most states, businesses choose to declare themselves a....
4. The Secretary of State (pg 3): Corporations, Limited Liability Company (LLC), or Limited Partnerships
file information with the state, typically....
5. Sole Proprietorship (pg 4): The simplest form of business organization, in which the owner is the
business. The owner reports business income on his or her personal income tax return through a Schedule C and
is legally responsible for all debts and obligations incurred by the business.
6. General Partnership (pg 5): partnership in which partners share equally in both responsibility and
liability. Partnership is based on written agreement
7. Joint Venture (pg 5): A general partnership is typically formed to carry out a particular business transaction
or project rather than one intended to continue indefinitely.
8. Limited Partnership (pg 5): One or more general partners manage the business while limited partners
who assume no active role in running the business, contribute capital and share the profits.
9. General Partners (pg 5): Manage the business in a Limited Partnership
10. Limited Partner (pg 5 & 6): Has no active role running the business but contribute capital and share
in the profits in a Limited Partnership. Encourages investors to invest while limiting their risk to the capital they have
contributed.
11. Limited Partnership (pg. 5): is a separate legal entity that does not pay income tax on its annual taxable
income. Rather, taxable income is passed through to the owners who pay the taxes on their individual tax returns.
12. S-Corporation ( pg 7): Profits and losses are passed through the corporation and are then reported on
the individual tax returns of the shareholders who own the business. Same basic pass-through treatment given to
,partnerships.
13. Operating Agreement (pg 7): Legal document that defines the roles, rights, and responsibilities of
the members (owners), and sets the rules for how the company is managed and how decisions are made.
14. Main Headings of Business Plan (pg 10): Description and Goals of the Business; Markets and
Marketing; Finances; and, Management.
15. License holder (pg 11): Contractor's Board will have the responsible for all construc-
tion, business and financial activities related to contracting.
, 16. Reciprocity (pg 11): a licensee who has been disciplined for an activity in one jurisdiction could also be
restricted by another Jurisdiction.
17. What is one responsibility of a Project Manager regarding the project bud-
get?: Preparing and overseeing the project budget
18. What is one responsibility of a Project Manager regarding the production
schedule?: Preparing and overseeing the production schedule
19. What does a Project Manager submit related to financials?: Submitting pay reports
20. What is a task that involves changes in a project?: Handling change orders
21. What is required for the construction process that a Project Manager ac-
quires?: Acquiring shop drawings
22. What is one duty of a Project Superintendent? (pg 15): Being responsible for on-site
activities, including quality control.
23. What is another duty of a Project Superintendent? (pg 15): Supervising workers.
24. What is the responsibility of a Project Superintendent regarding subcontrac-
tors? (pg 15): Coordinating work with subcontractors and utility companies.
25. What does a Project Superintendent oversee related to materials? (pg 15): -
Overseeing materials distribution and storage.
26. What type of notices does a Project Superintendent initiate? (pg 15): Notices for
claims for extra time or work.
27. Float time (pg 20): The time that an activity can float before the timing becomes critical to the project
completion date
28. Types of Schedules (pg 20): List and Time Scale (Bar Chart)
29. Time Scale (Bar Chart) (pg 21): denotes when activities are scheduled and their anticipated duration
by graphically showing the starting and finishing times for individual tasks that make up the project.
30. Time Scale (Bar Chart) Drawback (pg 21): Fails to show the interrelationships among the various
activities
31. CPM (pg 22): Critical Path Method
32. Critical Path Method (CPM) (pg 22): The standard method of scheduling projects today; the
shortest duration for an activity or series of activities
33. What does a CPM Schedule take into account? (pg 22): The relationships of various
activities that must be completed during the course of the project.
