TN CONTRACTOR'S TEST BUSINESS & LAW
TEST 1 2026 | COMPLETE STUDY GUIDE &
PRACTICE QUESTIONS
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales Included
,The contractor's obligations include all of the following except ______
A. Supplying all labor and any subcontractors needed to complete the job
B. completing all work in accordance with plans and specifications
C. thoroughly cleaning the entire premises using a professional flood restoration quality
contractor upon completion of work
D. Procession of all required licenses and obtaining all required permits
C. (7-4)
The following are examples of "overhead expenses" except ____
A. Legal Fees
B. Trade Journal Advertising
C. Office rental expenditures
D. Taxes
B. (6-7)
A business plan is very important for the following reasons:
A. it is often required by investors and/or loan officers
B. it can at times be used as a planning tool
C. it is sometimes used as a benchmarking tool
D. all of the above
D. (1-3)
, Where a general partnership exists, unless previously stated in a partnership agreement, if
one of the partners dies or decides to leave, the partnership is usually dissolved, and the
assets of the partnership must be sold or distributed to first pay ______ and then the partners.
A. the investors
B. the creditors
C. the distributors
D. other owners
B. (2-2)
A contractor must always ______ before signing a document that will indemnify an owner
A. carefully review his liability insurance policy
B. think about it and sleep on it a few nights
C. purchase a maintenance bond
D. purchase a security bond
A. (3-7 & 7-5)
The work on a small commercial contract can be completed in 40 hours with a two-man
crew. If the contractor elects to send a five-man crew to perform the work at this location,
how many days should it take to complete the job?
A. 1
B. 2
C. 2.5
D. 3
B.
#men*#hrs=#Xhrs
#Xhrs/5men= Xhrs or work days
Contract changes made prior to the awarding of the contract are called, ____
A. document errata
B. Official errata
C. Addenda
D. contract modifications
C. (7-8)
TEST 1 2026 | COMPLETE STUDY GUIDE &
PRACTICE QUESTIONS
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales Included
,The contractor's obligations include all of the following except ______
A. Supplying all labor and any subcontractors needed to complete the job
B. completing all work in accordance with plans and specifications
C. thoroughly cleaning the entire premises using a professional flood restoration quality
contractor upon completion of work
D. Procession of all required licenses and obtaining all required permits
C. (7-4)
The following are examples of "overhead expenses" except ____
A. Legal Fees
B. Trade Journal Advertising
C. Office rental expenditures
D. Taxes
B. (6-7)
A business plan is very important for the following reasons:
A. it is often required by investors and/or loan officers
B. it can at times be used as a planning tool
C. it is sometimes used as a benchmarking tool
D. all of the above
D. (1-3)
, Where a general partnership exists, unless previously stated in a partnership agreement, if
one of the partners dies or decides to leave, the partnership is usually dissolved, and the
assets of the partnership must be sold or distributed to first pay ______ and then the partners.
A. the investors
B. the creditors
C. the distributors
D. other owners
B. (2-2)
A contractor must always ______ before signing a document that will indemnify an owner
A. carefully review his liability insurance policy
B. think about it and sleep on it a few nights
C. purchase a maintenance bond
D. purchase a security bond
A. (3-7 & 7-5)
The work on a small commercial contract can be completed in 40 hours with a two-man
crew. If the contractor elects to send a five-man crew to perform the work at this location,
how many days should it take to complete the job?
A. 1
B. 2
C. 2.5
D. 3
B.
#men*#hrs=#Xhrs
#Xhrs/5men= Xhrs or work days
Contract changes made prior to the awarding of the contract are called, ____
A. document errata
B. Official errata
C. Addenda
D. contract modifications
C. (7-8)
