TENNESSEE BUSINESS AND LAW PRACTICE
EXAMINATION 2026 QUESTIONS WITH
ANSWERS GRADED A+
◍ The Clean Water Act....
Answer: establishes the basic structure for regulating discharges of
pollutants into the waters of the United States
◍ owner occupant.
Answer: any owner of real property who, at the time such owner contracts
for the improvement thereof, occupies such a real property such as owner's
principal place of residence
◍ The Emergency Action Plan must include procedures for:.
Answer: -reporting a fire or other emergency-emergency
evacuation-employees who remain for critical operations before
evacuating-accounting for all employees after evacuation-employees
performing rescue or medical duties
◍ if you are working with asbestos....
Answer: you should have your site inspected by a certified asbestos
inspector prior to construction
◍ Negotiation Basics.
Answer: be prepared and get agreement in writing
◍ Named peril builders' risk insurance.
Answer: typical named peril policies are written for fire and lightening but
can also include events such as wind damage, explosion, water damage,
terrorism, or earthquake
◍ What is quantity take off?.
, Answer: an accurate method of estimating, when using this method, you
individually estimate units of materials and labor for each task you listed in
your estimating framework
◍ Bond.
Answer: a risk transfer mechanism between a surety bonding company, the
contractor, and the project owner. The agreement binds the contractor to
comply with the terms and conditions of a contract, If the contractor cannot
perform the contract, the surely bonding company assumes the contracto'r's
responsibilities and ensures that the project is completed.
◍ The foreman assists the supervisor by:.
Answer: reviewing project plans and blueprints-providing input on
estimated time, material, equipment and supplies needed-developing
schedules and crew assignments-inspecting work areas-evaluating employee
and subcontractor performance-completing time sheets, accident reports,
and work orders-training employees
◍ Payroll Accounting.
Answer: through records are important for such reasons as calculating tax
liabilities and tracking labor costs
◍ Hiring Minors, 14 or 15, for Construction Work.
Answer: when school is in session they may not work until 7 am or later
than 7 pm and no more than three hours a day/18 hours a week. no work in
school hours
◍ What are Recitals?.
Answer: language at the beginning of the contract that provides background
to the contract (who is entering it and why)
◍ Cost control estimating.
Answer: Tracks costs to prevent overruns
◍ State Tax Form.
Answer: determine level of state tax withholding - TN does not have a state
income tax
,◍ Material breach.
Answer: the injured party can seek monetary damages for the loss suffered
as a results of the breach. sometimes damages are written into the contract
◍ Who can file a claim on a residential property..
Answer: I put the General Contractor but the question didn't say that it was
owner occupied.
◍ Clean Water Act.
Answer: establishes basic structure for regulating discharges of pollutants
into the waters of the United States
◍ Breach of Contract.
Answer: occurs when one of the parties involved fails to perform in
accordance with any of the terms and conditions of the contract
◍ Site Rules for Contractors.
Answer: should be received before starting work and posted on site for
everyone to see
◍ Method of accounting that posts expenses immediately..
Answer: Cash Method
◍ accurate method.
Answer: recognize income when the services occur, not when you collect
money, same with expenses
◍ What do you report FUTA taxes on?.
Answer: Form 940, Employer's Annual Federal Unemployment (FUTA)
Tax Return
◍ Superintendent.
Answer: an onsite supervisor responsible for the daily opperations
◍ Cumulative earnings - amount billed to date =.
Answer: billing overage/deficiency
◍ Advantages of a c corporation.
, Answer: -separate legal entity-limited liability for stockholders-unlimited
life of the business-availability of capital resources-transfer of ownership
through sale of stock
◍ revenues.
Answer: the income received from the daily operations of the business
◍ Advantages of a general partnership.
Answer: -ease of formation-direct profit rewards-larger management base
than that of a sole proprietorship
◍ What is the critical path method of scheduling?.
Answer: illustrates the interdependent relationship of tasks
◍ Net profit (after taxes) / total assets =.
Answer: return on total assets
◍ Title VII of the Civil Rights Act of 1964.
Answer: Prohibits discrimination in employment decisions on the basis of
race, religion, sex, color, or national origin
◍ (Current Assets - Inventory) / Current Liabilities =.
Answer: Quick Ratio
◍ Safety standards.
Answer: all employers are subject to federal OSHA requirements and some
states have adopted a state planit is the employer's responsibility to
understand the OSHA standards and quickly correct any violations
◍ Factors in Business Failure.
Answer: poor planning and inadequate management
◍ Employee handbooks items not needed to be included:.
Answer: Copyright
◍ What is an exchange?.
Answer: both parties must give up something of value to have consideration.
most likely this will be money, but it could be anything of value
EXAMINATION 2026 QUESTIONS WITH
ANSWERS GRADED A+
◍ The Clean Water Act....
Answer: establishes the basic structure for regulating discharges of
pollutants into the waters of the United States
◍ owner occupant.
Answer: any owner of real property who, at the time such owner contracts
for the improvement thereof, occupies such a real property such as owner's
principal place of residence
◍ The Emergency Action Plan must include procedures for:.
Answer: -reporting a fire or other emergency-emergency
evacuation-employees who remain for critical operations before
evacuating-accounting for all employees after evacuation-employees
performing rescue or medical duties
◍ if you are working with asbestos....
Answer: you should have your site inspected by a certified asbestos
inspector prior to construction
◍ Negotiation Basics.
Answer: be prepared and get agreement in writing
◍ Named peril builders' risk insurance.
Answer: typical named peril policies are written for fire and lightening but
can also include events such as wind damage, explosion, water damage,
terrorism, or earthquake
◍ What is quantity take off?.
, Answer: an accurate method of estimating, when using this method, you
individually estimate units of materials and labor for each task you listed in
your estimating framework
◍ Bond.
Answer: a risk transfer mechanism between a surety bonding company, the
contractor, and the project owner. The agreement binds the contractor to
comply with the terms and conditions of a contract, If the contractor cannot
perform the contract, the surely bonding company assumes the contracto'r's
responsibilities and ensures that the project is completed.
◍ The foreman assists the supervisor by:.
Answer: reviewing project plans and blueprints-providing input on
estimated time, material, equipment and supplies needed-developing
schedules and crew assignments-inspecting work areas-evaluating employee
and subcontractor performance-completing time sheets, accident reports,
and work orders-training employees
◍ Payroll Accounting.
Answer: through records are important for such reasons as calculating tax
liabilities and tracking labor costs
◍ Hiring Minors, 14 or 15, for Construction Work.
Answer: when school is in session they may not work until 7 am or later
than 7 pm and no more than three hours a day/18 hours a week. no work in
school hours
◍ What are Recitals?.
Answer: language at the beginning of the contract that provides background
to the contract (who is entering it and why)
◍ Cost control estimating.
Answer: Tracks costs to prevent overruns
◍ State Tax Form.
Answer: determine level of state tax withholding - TN does not have a state
income tax
,◍ Material breach.
Answer: the injured party can seek monetary damages for the loss suffered
as a results of the breach. sometimes damages are written into the contract
◍ Who can file a claim on a residential property..
Answer: I put the General Contractor but the question didn't say that it was
owner occupied.
◍ Clean Water Act.
Answer: establishes basic structure for regulating discharges of pollutants
into the waters of the United States
◍ Breach of Contract.
Answer: occurs when one of the parties involved fails to perform in
accordance with any of the terms and conditions of the contract
◍ Site Rules for Contractors.
Answer: should be received before starting work and posted on site for
everyone to see
◍ Method of accounting that posts expenses immediately..
Answer: Cash Method
◍ accurate method.
Answer: recognize income when the services occur, not when you collect
money, same with expenses
◍ What do you report FUTA taxes on?.
Answer: Form 940, Employer's Annual Federal Unemployment (FUTA)
Tax Return
◍ Superintendent.
Answer: an onsite supervisor responsible for the daily opperations
◍ Cumulative earnings - amount billed to date =.
Answer: billing overage/deficiency
◍ Advantages of a c corporation.
, Answer: -separate legal entity-limited liability for stockholders-unlimited
life of the business-availability of capital resources-transfer of ownership
through sale of stock
◍ revenues.
Answer: the income received from the daily operations of the business
◍ Advantages of a general partnership.
Answer: -ease of formation-direct profit rewards-larger management base
than that of a sole proprietorship
◍ What is the critical path method of scheduling?.
Answer: illustrates the interdependent relationship of tasks
◍ Net profit (after taxes) / total assets =.
Answer: return on total assets
◍ Title VII of the Civil Rights Act of 1964.
Answer: Prohibits discrimination in employment decisions on the basis of
race, religion, sex, color, or national origin
◍ (Current Assets - Inventory) / Current Liabilities =.
Answer: Quick Ratio
◍ Safety standards.
Answer: all employers are subject to federal OSHA requirements and some
states have adopted a state planit is the employer's responsibility to
understand the OSHA standards and quickly correct any violations
◍ Factors in Business Failure.
Answer: poor planning and inadequate management
◍ Employee handbooks items not needed to be included:.
Answer: Copyright
◍ What is an exchange?.
Answer: both parties must give up something of value to have consideration.
most likely this will be money, but it could be anything of value
