TENNESSEE BUSINESS AND LAW FINAL
TEST 2026 QUESTIONS WITH CORRECT
ANSWERS GRADED A+
◍ What is an ADVANTAGE of a C corporation?.
Answer: Limited liability for debts and actions of the corporation. - Chapter
2-3
◍ OSHA medical records and injury reports must be kept how long.
Answer: Course of employment and 30 years
◍ Accural Accounting.
Answer: accounting method that records revenues and expenses when they
occur, not necessarily when cash actually changes hands
◍ A licensed contractor pulls the permit for an unlicensed contractor and the
inspector issues the CO.
Answer: NEVER ALLOWED
◍ 3 types of scheduling methods.
Answer: calendarbar chartcritical path
◍ What is the MAXIMUM action the Board can take against a licensee found
guilty of gross negligence?.
Answer: Revoke the license - Appendix E-10 62-6-111
◍ A licensed contractor wants to submit a bid on a project that is above the
monetary limit of the contractor's license. When MUST the contractor
request from the Board an increase to the monetary limit?.
Answer: By the last day of the month prior to the next board meeting -
Appendix E-10 62-6-111
◍ IRS form 941.
, Answer: If you report less that $2,500 for the quarter
◍ The amount the owner has invested in the business is included in?.
Answer: Owner's equity
◍ Two licensees with similar classifications, each with a $500,000 monetary
limitation, wish to create a joint venture to bid on a $1,000,000 contract.
Which of the following is true regarding the situation?.
Answer: The licensees may bid on and contract for the project, as it is within
their total monetary limitations
◍ If you owe over $500 for unemployment taxes when is the deadline for you
to file?.
Answer: Quaterly
◍ Which of the following is most important when entering into a 50/50
partnership?.
Answer: Prepare a written agreement - Chapter 2-2
◍ federal minimum wage.
Answer: $7.25/hour
◍ Where do you reserve a name for your Company, LLC or Partnership?.
Answer: The Secretary of State Office - Chapter 2-6
◍ One accurate method of estimating in which you individually estimate units
of materials and labor for each task is known as?.
Answer: The Quantity Take Off Method
◍ What taxes is an employer required to withhold on an employee paycheck?.
Answer: FICA and Federal Income Tax
◍ Failure to comply with the new hire law could result in a fine of how much
per incident for failure to report?.
Answer: $20
◍ immaterial or partial breach of contract.
Answer: Injured party May only sue for value of damages
, ◍ What is the maximum height of guardrails measured above stair tread
nosings?a. 34"b. 36"c. 38"d. 40".
Answer: C. 38"
◍ What is the best application for veneer plaster?.
Answer: one coat
◍ What is the penalty for a contractor who is guilty of knowingly making a
FALSE statement relating to the amount due for labor or materials furnished
for a job?.
Answer: $1,000 per violation - Appendix E-25 62-6-308
◍ Disadvantages of Sole Proprietorship.
Answer: Unlimited personal liability
◍ Emergency Action Plan.
Answer: More than 10 employees must be in WRITTING
◍ On a $5.1 million contract what should be the value of the payment bond?.
Answer: $2.5 million
◍ Three people join together to form a partnership. One of the partners fails to
meet their financial obligations. The other two partners:.
Answer: can be forced to pay. - Chapter 2-2
◍ 8. What is the required overlap for the poly that is installed between the
grade and concrete slab to be installed?a. 4"b. 5"c. 6"d. 8".
Answer: C. 6"
◍ S corporation.
Answer: a form of corporation that avoids double taxation by having its
income taxed as if it were a partnership
◍ Two licensees with similar classifications, each with a $500,000 monetary
limitation, wish to create a joint venture to bid on a $1,000,000 contract.
Which of the following is a TRUE statement regarding the situation?.
Answer: The licensees may bid on and contract for the project, as it is within
their total monetary limitation's. - Appendix F-4 0680-1-11
TEST 2026 QUESTIONS WITH CORRECT
ANSWERS GRADED A+
◍ What is an ADVANTAGE of a C corporation?.
Answer: Limited liability for debts and actions of the corporation. - Chapter
2-3
◍ OSHA medical records and injury reports must be kept how long.
Answer: Course of employment and 30 years
◍ Accural Accounting.
Answer: accounting method that records revenues and expenses when they
occur, not necessarily when cash actually changes hands
◍ A licensed contractor pulls the permit for an unlicensed contractor and the
inspector issues the CO.
Answer: NEVER ALLOWED
◍ 3 types of scheduling methods.
Answer: calendarbar chartcritical path
◍ What is the MAXIMUM action the Board can take against a licensee found
guilty of gross negligence?.
Answer: Revoke the license - Appendix E-10 62-6-111
◍ A licensed contractor wants to submit a bid on a project that is above the
monetary limit of the contractor's license. When MUST the contractor
request from the Board an increase to the monetary limit?.
Answer: By the last day of the month prior to the next board meeting -
Appendix E-10 62-6-111
◍ IRS form 941.
, Answer: If you report less that $2,500 for the quarter
◍ The amount the owner has invested in the business is included in?.
Answer: Owner's equity
◍ Two licensees with similar classifications, each with a $500,000 monetary
limitation, wish to create a joint venture to bid on a $1,000,000 contract.
Which of the following is true regarding the situation?.
Answer: The licensees may bid on and contract for the project, as it is within
their total monetary limitations
◍ If you owe over $500 for unemployment taxes when is the deadline for you
to file?.
Answer: Quaterly
◍ Which of the following is most important when entering into a 50/50
partnership?.
Answer: Prepare a written agreement - Chapter 2-2
◍ federal minimum wage.
Answer: $7.25/hour
◍ Where do you reserve a name for your Company, LLC or Partnership?.
Answer: The Secretary of State Office - Chapter 2-6
◍ One accurate method of estimating in which you individually estimate units
of materials and labor for each task is known as?.
Answer: The Quantity Take Off Method
◍ What taxes is an employer required to withhold on an employee paycheck?.
Answer: FICA and Federal Income Tax
◍ Failure to comply with the new hire law could result in a fine of how much
per incident for failure to report?.
Answer: $20
◍ immaterial or partial breach of contract.
Answer: Injured party May only sue for value of damages
, ◍ What is the maximum height of guardrails measured above stair tread
nosings?a. 34"b. 36"c. 38"d. 40".
Answer: C. 38"
◍ What is the best application for veneer plaster?.
Answer: one coat
◍ What is the penalty for a contractor who is guilty of knowingly making a
FALSE statement relating to the amount due for labor or materials furnished
for a job?.
Answer: $1,000 per violation - Appendix E-25 62-6-308
◍ Disadvantages of Sole Proprietorship.
Answer: Unlimited personal liability
◍ Emergency Action Plan.
Answer: More than 10 employees must be in WRITTING
◍ On a $5.1 million contract what should be the value of the payment bond?.
Answer: $2.5 million
◍ Three people join together to form a partnership. One of the partners fails to
meet their financial obligations. The other two partners:.
Answer: can be forced to pay. - Chapter 2-2
◍ 8. What is the required overlap for the poly that is installed between the
grade and concrete slab to be installed?a. 4"b. 5"c. 6"d. 8".
Answer: C. 6"
◍ S corporation.
Answer: a form of corporation that avoids double taxation by having its
income taxed as if it were a partnership
◍ Two licensees with similar classifications, each with a $500,000 monetary
limitation, wish to create a joint venture to bid on a $1,000,000 contract.
Which of the following is a TRUE statement regarding the situation?.
Answer: The licensees may bid on and contract for the project, as it is within
their total monetary limitation's. - Appendix F-4 0680-1-11
