FLORIDA BUILDING CONTRACTOR
BUSINESS/FINANCE STUDY EXAM
WITH CORRECT SOLUTIONS
1. How many employees must an employer have before he must apply for workers
compensation insurance? - ANSWER-1 or more
2. The most important aspect to consider when bidding is: - ANSWER-Profit
3. What does the acronym GAAP signify in accounting? - ANSWER-Generally Accepted
Accounted Principles
4. If I fail one or more portions of the examination, do I have to retake all parts again? -
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: - ANSWER-Filling out an
application
6. When can you allow your employee to view their personal file? - ANSWER-Whenever
they wish to
7. A payment bond would be posted by the: - ANSWER-Prime contractor or property
owner
8. How long after I pass the examinations do I have to apply for Initial Licensure? -
ANSWER-Four years
9. Are contractors required to qualify a construction business? - ANSWER-Yes
10. A payment bond guarantees that the bonding company will pay valid claims for
unpaid bills owed by the ______ posting the bond. - ANSWER-Prime contractor or
property owner
11. Before the completion of work the person who authorizes a temporary certificate of
__________ is the building official. - ANSWER-Occupancy
12. Majority for the negotiated construction contracts are on a ________ basis. -
ANSWER-Cost plus fee
13. What must a contractor do to prevent cash flow problems at the end of a
construction project? - ANSWER-Obtain a line of credit from a bank
, 14. What should be done with the contractors IRS form W-2? - ANSWER-File a copy in
the contractor's office
15. By law, your workers may not be younger than ______ of age. - ANSWER-16
16. Business equity is shown on the financial statement called teh: - ANSWER-Balance
Sheet
17. State disability and income taxes must be: - ANSWER-Reported and paid quarterly
18. The only reason an employer can lawfully deny employment is _________. -
ANSWER-No work experience or social security number
36. An employee must be at least ____ years old to work in most non-farm jobs an dat
least ____ to work in non-farm jobs declared hazardous by the Secretary of Labor. -
ANSWER-16:18
37. What are the Penalties for contracting without a License in Florida? - ANSWER-First
degree misdemeanor, with penalties of up to one year in jail and a $1000 fine.
38. In the event that an employee quits without prior notice the contractor must pay
wages: - ANSWER-In full, paid a the next regular pay period.
39. Who would be responsible if a building code violation was found after the contract
was completed? - ANSWER-Contractor and architect
40. Under the accrual basis of accounting, revenues are reported in the accounting
period when the: - ANSWER-Services or good have been delivered
41. When would an employee be required to complete a new IRS form for W-4? -
ANSWER-A change in marital status
42. Which is found generally to be TRUE about construction contracts? - ANSWER-
Specific provisions prevail over general provision
43. Are employees required to pay extra for weekend or night work? - ANSWER-
Depends on the agreement between the employer and employee
44. The ________ guarantees both job completion and payment of sub-contractors and
suppliers? - ANSWER-Contract bond or surety bond
19. You are permitted _______ attempts within four years from the date of the initial
licensure examination to pass all portions of the examinations. - ANSWER-Four years
BUSINESS/FINANCE STUDY EXAM
WITH CORRECT SOLUTIONS
1. How many employees must an employer have before he must apply for workers
compensation insurance? - ANSWER-1 or more
2. The most important aspect to consider when bidding is: - ANSWER-Profit
3. What does the acronym GAAP signify in accounting? - ANSWER-Generally Accepted
Accounted Principles
4. If I fail one or more portions of the examination, do I have to retake all parts again? -
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: - ANSWER-Filling out an
application
6. When can you allow your employee to view their personal file? - ANSWER-Whenever
they wish to
7. A payment bond would be posted by the: - ANSWER-Prime contractor or property
owner
8. How long after I pass the examinations do I have to apply for Initial Licensure? -
ANSWER-Four years
9. Are contractors required to qualify a construction business? - ANSWER-Yes
10. A payment bond guarantees that the bonding company will pay valid claims for
unpaid bills owed by the ______ posting the bond. - ANSWER-Prime contractor or
property owner
11. Before the completion of work the person who authorizes a temporary certificate of
__________ is the building official. - ANSWER-Occupancy
12. Majority for the negotiated construction contracts are on a ________ basis. -
ANSWER-Cost plus fee
13. What must a contractor do to prevent cash flow problems at the end of a
construction project? - ANSWER-Obtain a line of credit from a bank
, 14. What should be done with the contractors IRS form W-2? - ANSWER-File a copy in
the contractor's office
15. By law, your workers may not be younger than ______ of age. - ANSWER-16
16. Business equity is shown on the financial statement called teh: - ANSWER-Balance
Sheet
17. State disability and income taxes must be: - ANSWER-Reported and paid quarterly
18. The only reason an employer can lawfully deny employment is _________. -
ANSWER-No work experience or social security number
36. An employee must be at least ____ years old to work in most non-farm jobs an dat
least ____ to work in non-farm jobs declared hazardous by the Secretary of Labor. -
ANSWER-16:18
37. What are the Penalties for contracting without a License in Florida? - ANSWER-First
degree misdemeanor, with penalties of up to one year in jail and a $1000 fine.
38. In the event that an employee quits without prior notice the contractor must pay
wages: - ANSWER-In full, paid a the next regular pay period.
39. Who would be responsible if a building code violation was found after the contract
was completed? - ANSWER-Contractor and architect
40. Under the accrual basis of accounting, revenues are reported in the accounting
period when the: - ANSWER-Services or good have been delivered
41. When would an employee be required to complete a new IRS form for W-4? -
ANSWER-A change in marital status
42. Which is found generally to be TRUE about construction contracts? - ANSWER-
Specific provisions prevail over general provision
43. Are employees required to pay extra for weekend or night work? - ANSWER-
Depends on the agreement between the employer and employee
44. The ________ guarantees both job completion and payment of sub-contractors and
suppliers? - ANSWER-Contract bond or surety bond
19. You are permitted _______ attempts within four years from the date of the initial
licensure examination to pass all portions of the examinations. - ANSWER-Four years
