TENNESSEE BUSINESS AND LAW
COMPREHENSIVE STUDY GUIDE 2026 FULL
QUESTIONS AND SOLUTIONS GRADED A+
◍ Cash Management.
Answer: positive cash flow is an important indicator of the health of your
business. collecting no accounts receivable and billing and collecting on
current accounts are important to the cash management process
◍ Responsibilities of a project manager generally include, but are not limited
to:.
Answer: -preparing budgets-reviewing shop drawings to determine
appropriate construction methods-determining labor requirements and
preparing schedules-monitoring overall progress of the project and
preparing job recordsmonitoring compliance with building and safety
codes-ensuring proper handling of change orders-regularly meeting with
owners, trade contractors, architects, and other design professionals on
project progress
◍ trial balance.
Answer: total of all ledger accounts
◍ Current Liabilities.
Answer: liabilities due within a short time, usually within a year
◍ What is medical treatment?.
Answer: the management and care of a patient to combat a disease or
disorder
◍ U.
S. Environmental Protection Agency (EPA).
Answer: works to develop and enforce regulations that implement
, environmental laws enacted by Congress
◍ The extent to which the work makes his or her services available to the
relevant market:.
Answer: an independent contractor is usually paid a flat fee by the business
with which he or she has contracted
◍ A "Contractor" is....
Answer: twenty-five thousand dollars or more, provided, however, with
respect to a licensed masonry contractor, such term means and includes the
masonry portion of the construction portion of the construction project, the
total cost which exceeds one hundred thousand dollars, materials and labor
◍ What is total float time?.
Answer: refers to the amount of leeway allowed in starting or completing an
activity without delaying the project completion date
◍ What is Director's and Officer's (D and O) Liability Insurance?.
Answer: protects directors and officers from liability due to actions
connected with their corporate positionsthis insurance does not cover
intentional or illegal acts
◍ Accounting Process for Materials.
Answer: purchase orders help track material inventories and related
expenses in the accounting system. invoices should be matched with
purchase orders to ensure that the billing is accurate
◍ When must you have 1096 forms filled?.
Answer: February 28th
◍ When resolving claims....
Answer: work must cease on disputed activities until all safety issues are
resolved
◍ Statement of cash flows.
Answer: this summarizes your current cash position, your cash sources, and
use of these funds over a given period of time
,◍ Contractor's obligations include but are not limited to:.
Answer: -having proper licensure-securing building permits-ordering all
materials and supplies and arranging for site delivery-furnishing all labor,
including obtaining required subcontractors to complete the job-completing
all work in compliance with all applicable codes and scheduling inspections
on a timely basis-completing all work according to plans and
specifications-keeping the construction site clean and removing all debris
during and upon completion of construction
◍ Project Manager.
Answer: an individual who plans and coordinates a construction project to
meet the overall goals of the project and serves as the main contact with the
owner
◍ Cost Plus Contract.
Answer: A type of contract in which the contractor is reimbursed for the
actual costs of labor and materials and is paid a markup fee for overhead
profit
◍ What is the maximum punishment the Board can issue to a contractor found
to be in gross negligence?.
Answer: Revoke the license. (The Board can also impose fines up to $5,000
in TN so the "real world" maximum penalty is to revoke license and fine
$5,000)
◍ Direct Lienor.
Answer: they have one year from the competition or termination of work to
file a lien
◍ What are the different types of business structures?.
Answer: sole proprietorship, partnership, c corporation, s corporation,
limited liability company
◍ Assets =.
Answer: Liabilities + Owners' Equity
, ◍ Form W-2.
Answer: A summary of your earnings and withholdings for the year for a job
◍ The Accounting Cycle.
Answer: classifying and recording transactions, posting transactions,
preparing a rial balance, preparing an adjusted trial balance, preparing
financial statements, analyzing financial statements
◍ New Hire Reporting.
Answer: Tennessee has mandatory requirements for reporting new hires
◍ OSHA Form 300A.
Answer: summary of year before injuries
◍ Immigration and Nationality Act.
Answer: the employment eligibility provisions of the Immigration and
Nationality Act require employers to verify the employment eligibility of all
individuals hired. Immigration and Naturalization Service forms (I-9) must
be kept on file for at least three years after the date of hire for one year after
the day employment ends, whichever is later
◍ Examples of project overhead costs include:.
Answer: -bonds-temporary storage-temporary office-security
guard-utilities-dumpsters-portable toilets
◍ What is the general journal in regards to the accounting cycle?.
Answer: this is used for non-cash transactions
◍ percentage of completion method formula.
Answer: project costs incurred/total estimated costs
◍ Material Breach.
Answer: a serious violation of a contract that may void the contract and will
most likely end up in litigation
◍ Element of a Business Plan.
Answer: cover page, executive summary, company summary, products and
services, market analysis, market strategy, financial plan
COMPREHENSIVE STUDY GUIDE 2026 FULL
QUESTIONS AND SOLUTIONS GRADED A+
◍ Cash Management.
Answer: positive cash flow is an important indicator of the health of your
business. collecting no accounts receivable and billing and collecting on
current accounts are important to the cash management process
◍ Responsibilities of a project manager generally include, but are not limited
to:.
Answer: -preparing budgets-reviewing shop drawings to determine
appropriate construction methods-determining labor requirements and
preparing schedules-monitoring overall progress of the project and
preparing job recordsmonitoring compliance with building and safety
codes-ensuring proper handling of change orders-regularly meeting with
owners, trade contractors, architects, and other design professionals on
project progress
◍ trial balance.
Answer: total of all ledger accounts
◍ Current Liabilities.
Answer: liabilities due within a short time, usually within a year
◍ What is medical treatment?.
Answer: the management and care of a patient to combat a disease or
disorder
◍ U.
S. Environmental Protection Agency (EPA).
Answer: works to develop and enforce regulations that implement
, environmental laws enacted by Congress
◍ The extent to which the work makes his or her services available to the
relevant market:.
Answer: an independent contractor is usually paid a flat fee by the business
with which he or she has contracted
◍ A "Contractor" is....
Answer: twenty-five thousand dollars or more, provided, however, with
respect to a licensed masonry contractor, such term means and includes the
masonry portion of the construction portion of the construction project, the
total cost which exceeds one hundred thousand dollars, materials and labor
◍ What is total float time?.
Answer: refers to the amount of leeway allowed in starting or completing an
activity without delaying the project completion date
◍ What is Director's and Officer's (D and O) Liability Insurance?.
Answer: protects directors and officers from liability due to actions
connected with their corporate positionsthis insurance does not cover
intentional or illegal acts
◍ Accounting Process for Materials.
Answer: purchase orders help track material inventories and related
expenses in the accounting system. invoices should be matched with
purchase orders to ensure that the billing is accurate
◍ When must you have 1096 forms filled?.
Answer: February 28th
◍ When resolving claims....
Answer: work must cease on disputed activities until all safety issues are
resolved
◍ Statement of cash flows.
Answer: this summarizes your current cash position, your cash sources, and
use of these funds over a given period of time
,◍ Contractor's obligations include but are not limited to:.
Answer: -having proper licensure-securing building permits-ordering all
materials and supplies and arranging for site delivery-furnishing all labor,
including obtaining required subcontractors to complete the job-completing
all work in compliance with all applicable codes and scheduling inspections
on a timely basis-completing all work according to plans and
specifications-keeping the construction site clean and removing all debris
during and upon completion of construction
◍ Project Manager.
Answer: an individual who plans and coordinates a construction project to
meet the overall goals of the project and serves as the main contact with the
owner
◍ Cost Plus Contract.
Answer: A type of contract in which the contractor is reimbursed for the
actual costs of labor and materials and is paid a markup fee for overhead
profit
◍ What is the maximum punishment the Board can issue to a contractor found
to be in gross negligence?.
Answer: Revoke the license. (The Board can also impose fines up to $5,000
in TN so the "real world" maximum penalty is to revoke license and fine
$5,000)
◍ Direct Lienor.
Answer: they have one year from the competition or termination of work to
file a lien
◍ What are the different types of business structures?.
Answer: sole proprietorship, partnership, c corporation, s corporation,
limited liability company
◍ Assets =.
Answer: Liabilities + Owners' Equity
, ◍ Form W-2.
Answer: A summary of your earnings and withholdings for the year for a job
◍ The Accounting Cycle.
Answer: classifying and recording transactions, posting transactions,
preparing a rial balance, preparing an adjusted trial balance, preparing
financial statements, analyzing financial statements
◍ New Hire Reporting.
Answer: Tennessee has mandatory requirements for reporting new hires
◍ OSHA Form 300A.
Answer: summary of year before injuries
◍ Immigration and Nationality Act.
Answer: the employment eligibility provisions of the Immigration and
Nationality Act require employers to verify the employment eligibility of all
individuals hired. Immigration and Naturalization Service forms (I-9) must
be kept on file for at least three years after the date of hire for one year after
the day employment ends, whichever is later
◍ Examples of project overhead costs include:.
Answer: -bonds-temporary storage-temporary office-security
guard-utilities-dumpsters-portable toilets
◍ What is the general journal in regards to the accounting cycle?.
Answer: this is used for non-cash transactions
◍ percentage of completion method formula.
Answer: project costs incurred/total estimated costs
◍ Material Breach.
Answer: a serious violation of a contract that may void the contract and will
most likely end up in litigation
◍ Element of a Business Plan.
Answer: cover page, executive summary, company summary, products and
services, market analysis, market strategy, financial plan
