Florida Building Contractor Business
Florida Building Contractor Business/Finance
Study Exam Study Questions and Answers 2025
1. How many employees must an employer have before he must apply for workers
compensation insurance? -Correct Answer ✔1 or more
2. The most important aspect to consider when bidding is: -Correct Answer ✔Profit
3. What does the acronym GAAP signify in accounting? -Correct Answer ✔Generally
Accepted Accounted Principles
4. If I fail one or more portions of the examination, do I have to retake all parts again? -
Correct Answer ✔No, only the exams on which he or she failed to achieve a passing
score
5. In order to obtain a building permit the following is required: -Correct Answer ✔Filling
out an application
6. When can you allow your employee to view their personal file? -Correct Answer
✔Whenever they wish to
7. A payment bond would be posted by the: -Correct Answer ✔Prime contractor or
property owner
8. How long after I pass the examinations do I have to apply for Initial Licensure? -
Correct Answer ✔Four years
9. Are contractors required to qualify a construction business? -Correct Answer ✔Yes
10. A payment bond guarantees that the bonding company will pay valid claims for
unpaid bills owed by the ______ posting the bond. -Correct Answer ✔Prime contractor
or property owner
11. Before the completion of work the person who authorizes a temporary certificate of
__________ is the building official. -Correct Answer ✔Occupancy
12. Majority for the negotiated construction contracts are on a ________ basis. -Correct
Answer ✔Cost plus fee
13. What must a contractor do to prevent cash flow problems at the end of a
construction project? -Correct Answer ✔Obtain a line of credit from a bank
1|Page
, Florida Building Contractor Business
14. What should be done with the contractors IRS form W-2? -Correct Answer ✔File a
copy in the contractor's office
15. By law, your workers may not be younger than ______ of age. -Correct Answer ✔16
16. Business equity is shown on the financial statement called teh: -Correct Answer
✔Balance Sheet
17. State disability and income taxes must be: -Correct Answer ✔Reported and paid
quarterly
18. The only reason an employer can lawfully deny employment is _________. -Correct
Answer ✔No work experience or social security number
19. You are permitted _______ attempts within four years from the date of the initial
licensure examination to pass all portions of the examinations. -Correct Answer ✔Four
years
20. The only time a contractor does not have to be licensed is if: -Correct Answer ✔If
you are working on a minor project and not compensated
21. When is the best time to let your attorney see your construction contract? -Correct
Answer ✔After the contract is prepared but before you sign it
22. Is compensation payable if an employee refuses to use a safety appliance like a
hard hat, safety goggles or observe a safety rule? -Correct Answer ✔Yes, but the
benefits may be reduced by 25%
23. One reason why a contractor keeps change order on file is: -Correct Answer ✔By
law
24. Which form authorizes a contractor to proceed with work until a formal change order
can be processed? -Correct Answer ✔Field Order
25. Under the Worker's Compensation Drug-Free Workplace Program, can a Contractor
conduct random drug testing of his/her employees? -Correct Answer ✔The law does not
prohibit a private employer from conducting random testing or any other lawful testing of
employees
26. A permit is required from OSHA for trenches that are ______ or more in depth. -
Correct Answer ✔5 feet
27. In a cost-incentive contract, the most common share of savings awarded to a
contractor is _______ percent? -Correct Answer ✔50%
2|Page
Florida Building Contractor Business/Finance
Study Exam Study Questions and Answers 2025
1. How many employees must an employer have before he must apply for workers
compensation insurance? -Correct Answer ✔1 or more
2. The most important aspect to consider when bidding is: -Correct Answer ✔Profit
3. What does the acronym GAAP signify in accounting? -Correct Answer ✔Generally
Accepted Accounted Principles
4. If I fail one or more portions of the examination, do I have to retake all parts again? -
Correct Answer ✔No, only the exams on which he or she failed to achieve a passing
score
5. In order to obtain a building permit the following is required: -Correct Answer ✔Filling
out an application
6. When can you allow your employee to view their personal file? -Correct Answer
✔Whenever they wish to
7. A payment bond would be posted by the: -Correct Answer ✔Prime contractor or
property owner
8. How long after I pass the examinations do I have to apply for Initial Licensure? -
Correct Answer ✔Four years
9. Are contractors required to qualify a construction business? -Correct Answer ✔Yes
10. A payment bond guarantees that the bonding company will pay valid claims for
unpaid bills owed by the ______ posting the bond. -Correct Answer ✔Prime contractor
or property owner
11. Before the completion of work the person who authorizes a temporary certificate of
__________ is the building official. -Correct Answer ✔Occupancy
12. Majority for the negotiated construction contracts are on a ________ basis. -Correct
Answer ✔Cost plus fee
13. What must a contractor do to prevent cash flow problems at the end of a
construction project? -Correct Answer ✔Obtain a line of credit from a bank
1|Page
, Florida Building Contractor Business
14. What should be done with the contractors IRS form W-2? -Correct Answer ✔File a
copy in the contractor's office
15. By law, your workers may not be younger than ______ of age. -Correct Answer ✔16
16. Business equity is shown on the financial statement called teh: -Correct Answer
✔Balance Sheet
17. State disability and income taxes must be: -Correct Answer ✔Reported and paid
quarterly
18. The only reason an employer can lawfully deny employment is _________. -Correct
Answer ✔No work experience or social security number
19. You are permitted _______ attempts within four years from the date of the initial
licensure examination to pass all portions of the examinations. -Correct Answer ✔Four
years
20. The only time a contractor does not have to be licensed is if: -Correct Answer ✔If
you are working on a minor project and not compensated
21. When is the best time to let your attorney see your construction contract? -Correct
Answer ✔After the contract is prepared but before you sign it
22. Is compensation payable if an employee refuses to use a safety appliance like a
hard hat, safety goggles or observe a safety rule? -Correct Answer ✔Yes, but the
benefits may be reduced by 25%
23. One reason why a contractor keeps change order on file is: -Correct Answer ✔By
law
24. Which form authorizes a contractor to proceed with work until a formal change order
can be processed? -Correct Answer ✔Field Order
25. Under the Worker's Compensation Drug-Free Workplace Program, can a Contractor
conduct random drug testing of his/her employees? -Correct Answer ✔The law does not
prohibit a private employer from conducting random testing or any other lawful testing of
employees
26. A permit is required from OSHA for trenches that are ______ or more in depth. -
Correct Answer ✔5 feet
27. In a cost-incentive contract, the most common share of savings awarded to a
contractor is _______ percent? -Correct Answer ✔50%
2|Page
