Law and Business Exam 1
Questions and Answers
Updated 2026
TheBdepartmentBmayBrefuseBtoBissueBaBlicenseBorBcertificateBtoBanBapplicantBwhoBh
asBdoneBwhichBofBtheBfollowing?B-
BAnswerBHasBsubmittedBfalseBorBmisleadingBinformation
-hasBhadBaBlicenseBdenied
-hasBfailedBtoBmeetBtheBminimumBqualifications
-anyBofBtheseBlisted
FormBI-9BmustBbeBkeptBforBatBleastB_________ByearsBfromBtheBdateBofBhire.B-
BAnswerB3
AccordingBtoBtheBstateBofBSouthBCarolina,BwhichBofBtheBfollowingBcanBbeBclassifiedBa
sBanBentity?B-BAnswerBsoleBproprietorship
-Partnership
-limitedBliabilityBcompany
-allBofBtheBaboveBareBrecognizedBasBanBentity
WhichBofBtheBfollowingBisBtheBpurposeBofBaBbusinessBplan?B-BAnswerBEstablishBrisks
WhichBofBtheBfollowingBbondsBguaranteesBthatBtheBcontractorBwillBcompleteBtheBproj
ect?B-BAnswerBperformanceBbond
WhichBofBtheBfollowingBisBNOTBoneBofBtheBkeyBelementsBtoBaBcontract?B-
BAnswerBCounterBoffer
, ForBfederalBtaxes,BaBsoleBproprietorBisBtoBuseBself-employmentBtaxBformB-
BAnswerB1040B&BScheduleBSE
WhichBgeneralBcontractorBgroupBclassificationBisBdistinguishedBby:BBidsBandBjobsBnotB
toBexceedB$350,000BperBjobB-BAnswerB-GroupB3
Worker'sBcompensationBisBpaidBforBbyBtheB-BAnswerBEmployer
WhichBofBtheBfollowingBisBnotBaBpitfallBtoBaBbusinessBplan?B-
BAnswerBInclusionBofBopportunities
WhichBofBtheBfollowingBisBanBineffectiveBsellingBskill?B-
BAnswerBInterruptBwhenBneeded.
ABcontractorBisBgoingBtoBpurchaseBtheBfollowingBfromBaBlocalBhardwareBstore.
-15BfeetBofB½"BScheduleB40BPVCBatB$0.50BperBfoot
-30BfeetBofB1"BScheduleB40BPVCBatB$0.90BperBfoot
-10BfeetBofB2"BScheduleB40BPVCBatB$1.50BperBfoot
WhatBisBtheBlowestBpossibleBcostBassumingBtheBtermsBareB31%/10BnetB30?B-
BAnswerB$48.01
(15'x$0.50BperBfoot=$7.50
30'x$0.90perBfoot=$27.00
10'x$1.50BperBfoot=$15.00
$7.50B+B$27.00B+$15.00B=$49.50
$49.50B-$3%=$1.49Bdiscount
$49.50B-$1.49B=B$48.01)
Questions and Answers
Updated 2026
TheBdepartmentBmayBrefuseBtoBissueBaBlicenseBorBcertificateBtoBanBapplicantBwhoBh
asBdoneBwhichBofBtheBfollowing?B-
BAnswerBHasBsubmittedBfalseBorBmisleadingBinformation
-hasBhadBaBlicenseBdenied
-hasBfailedBtoBmeetBtheBminimumBqualifications
-anyBofBtheseBlisted
FormBI-9BmustBbeBkeptBforBatBleastB_________ByearsBfromBtheBdateBofBhire.B-
BAnswerB3
AccordingBtoBtheBstateBofBSouthBCarolina,BwhichBofBtheBfollowingBcanBbeBclassifiedBa
sBanBentity?B-BAnswerBsoleBproprietorship
-Partnership
-limitedBliabilityBcompany
-allBofBtheBaboveBareBrecognizedBasBanBentity
WhichBofBtheBfollowingBisBtheBpurposeBofBaBbusinessBplan?B-BAnswerBEstablishBrisks
WhichBofBtheBfollowingBbondsBguaranteesBthatBtheBcontractorBwillBcompleteBtheBproj
ect?B-BAnswerBperformanceBbond
WhichBofBtheBfollowingBisBNOTBoneBofBtheBkeyBelementsBtoBaBcontract?B-
BAnswerBCounterBoffer
, ForBfederalBtaxes,BaBsoleBproprietorBisBtoBuseBself-employmentBtaxBformB-
BAnswerB1040B&BScheduleBSE
WhichBgeneralBcontractorBgroupBclassificationBisBdistinguishedBby:BBidsBandBjobsBnotB
toBexceedB$350,000BperBjobB-BAnswerB-GroupB3
Worker'sBcompensationBisBpaidBforBbyBtheB-BAnswerBEmployer
WhichBofBtheBfollowingBisBnotBaBpitfallBtoBaBbusinessBplan?B-
BAnswerBInclusionBofBopportunities
WhichBofBtheBfollowingBisBanBineffectiveBsellingBskill?B-
BAnswerBInterruptBwhenBneeded.
ABcontractorBisBgoingBtoBpurchaseBtheBfollowingBfromBaBlocalBhardwareBstore.
-15BfeetBofB½"BScheduleB40BPVCBatB$0.50BperBfoot
-30BfeetBofB1"BScheduleB40BPVCBatB$0.90BperBfoot
-10BfeetBofB2"BScheduleB40BPVCBatB$1.50BperBfoot
WhatBisBtheBlowestBpossibleBcostBassumingBtheBtermsBareB31%/10BnetB30?B-
BAnswerB$48.01
(15'x$0.50BperBfoot=$7.50
30'x$0.90perBfoot=$27.00
10'x$1.50BperBfoot=$15.00
$7.50B+B$27.00B+$15.00B=$49.50
$49.50B-$3%=$1.49Bdiscount
$49.50B-$1.49B=B$48.01)
