ALABAMA STATE HOME BUILDER LICENSURE BUSINESS,
LAW, AND PROJECT MANAGEMENT EXAM PREP
QUESTIONS AND ANSWERS LATEST UPDATE FOR
GUARANTEED SUCCESS
Ease of formation
An advantage of forming a business as a Sole Proprietorship is
a. There are no advantages of a Sole Proprietorship whatsoever.
b. The Doing Business As (DBA) filing protects the owner from personal liability
c. Ease of formation
Multiple owners (known as "members") are required to form an LLC
Many home builders form Limited Liability Companies (LLCs). What is not true about
the formation of an LLC?
a. Multiple owners (known as "members") are required to form an LLC
b. No advanced IRS filing
c. No public disclosure of finances is required
Doing Business As (DBA) filing
The formation documents for an S Corporation include all of the following except:
a. Doing Business As (DBA) Filing
b. Bylaws
c. Articles of Incorporation
,A dispute resolution clause
For a contract to be binding, each of the following are required except
a. a dispute resolution clause
b. offer and acceptance
c. consideration
A person who has reached the statutory age and is of sound mind
for the purposes of entering contracts "competent parties mean
a. a person who has reached the statutory age and is of sound mind
b. an attorney
c. a person who has studied contract law
Home builders licensed by the Alabama Home Builder Licensure Board are required to
use written contracts
Which of the following is TRUE
a. Home builders licensed by the Alabama Home Builder Licensure Board are required
to use written contracts
b. Home builders must use the contract written by the Alabama Home Builder Licensure
Board
c. A home building contract is only required when the parties are not already well-
acquainted
Attorney's fees, arbitration and consent to jurisdiction classes
Typical "boilerplate" provisions to a contract include
, a. Attorney's fees, arbitration and consent to jurisdiction classes
b. The payment distribution schedule
c. The address of the project
Stated damages that are specified in a contract because of losses or breaches
liquidated damages are
a. stated damages that are specified in a contract because of losses or breaches
b. not damages at all but refer to other matters
c. related to rain days on the job
Per-Diem Contract
Common types of construction contracts include each of the following except
a. Per-Diem Contract
b. Lump-Sum Contract
c. Unit-Price Contract
Should be in writing
Making changes to a contract
a. Should be in writing
b. Will change the schedule
c. Is always expensive
Alternative dispute resolution methods
LAW, AND PROJECT MANAGEMENT EXAM PREP
QUESTIONS AND ANSWERS LATEST UPDATE FOR
GUARANTEED SUCCESS
Ease of formation
An advantage of forming a business as a Sole Proprietorship is
a. There are no advantages of a Sole Proprietorship whatsoever.
b. The Doing Business As (DBA) filing protects the owner from personal liability
c. Ease of formation
Multiple owners (known as "members") are required to form an LLC
Many home builders form Limited Liability Companies (LLCs). What is not true about
the formation of an LLC?
a. Multiple owners (known as "members") are required to form an LLC
b. No advanced IRS filing
c. No public disclosure of finances is required
Doing Business As (DBA) filing
The formation documents for an S Corporation include all of the following except:
a. Doing Business As (DBA) Filing
b. Bylaws
c. Articles of Incorporation
,A dispute resolution clause
For a contract to be binding, each of the following are required except
a. a dispute resolution clause
b. offer and acceptance
c. consideration
A person who has reached the statutory age and is of sound mind
for the purposes of entering contracts "competent parties mean
a. a person who has reached the statutory age and is of sound mind
b. an attorney
c. a person who has studied contract law
Home builders licensed by the Alabama Home Builder Licensure Board are required to
use written contracts
Which of the following is TRUE
a. Home builders licensed by the Alabama Home Builder Licensure Board are required
to use written contracts
b. Home builders must use the contract written by the Alabama Home Builder Licensure
Board
c. A home building contract is only required when the parties are not already well-
acquainted
Attorney's fees, arbitration and consent to jurisdiction classes
Typical "boilerplate" provisions to a contract include
, a. Attorney's fees, arbitration and consent to jurisdiction classes
b. The payment distribution schedule
c. The address of the project
Stated damages that are specified in a contract because of losses or breaches
liquidated damages are
a. stated damages that are specified in a contract because of losses or breaches
b. not damages at all but refer to other matters
c. related to rain days on the job
Per-Diem Contract
Common types of construction contracts include each of the following except
a. Per-Diem Contract
b. Lump-Sum Contract
c. Unit-Price Contract
Should be in writing
Making changes to a contract
a. Should be in writing
b. Will change the schedule
c. Is always expensive
Alternative dispute resolution methods
