Florida Contractor's License Exam Prep 2024 | 300+ Q&A with Rationales | Business, Law, & Project Management | Test Bank for CILB Exam

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FL Contractor’s Manual – 300 Questions and
Correct Answers with Rationales/ Florida
Contractor’s Manual Exam Latest Test bank

True or False: In a General partnership, there is a potential of doubl taxation
p p p p p p p p p p p p p



p on earnings? - ..........ANSWER.......FALSE. (1-12,1-13)
p p p p




What is a Joint Venture? -
p p p p p



p ..........ANSWER.......C. Two of more persons or entities jointly seeking a prof
p p p p p p p p p p



it in some specific venture with out an actual partnership or corporation desi
p p p p p p p p p p p p



gnation. ((1-12) p




True or False: A joint Venture is generally limited to a single transaction. -
p p p p p p p p p p p p p



p ..........ANSWER.......True. (1-12,1-13) p




What is one of the advantages of a standard corporation? -
p p p p p p p p p p



p ..........ANSWER.......C. Fringe benefits are tax deductible (1-13) p p p p p p




Concerning an S corporation, who can be shareholders? -
p p p p p p p p



p ..........ANSWER.......B. Only individuals or estates can be shareholders.( 1-
p p p p p p p p



13)

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What is an advantage of an S Corporation? -
p p p p p p p p



p ..........ANSWER.......D. as sole proprietors, income or losses are reported as t p p p p p p p p p p



o an individual taxpayer(1-13)
p p p




What is an advantage of a regular corporation? -
p p p p p p p p



p ..........ANSWER.......C. tax deductible fringe benefits (1-13) p p p p p




A person may engage in business under a fictitious name by registering the n
p p p p p p p p p p p p p



ame with the ________? -
p p p p



p ..........ANSWER.......B.Division of corporations (1-14,1-15) p p p




How long is a registered fictitious name valid for? -
p p p p p p p p p



p ..........ANSWER.......A. 5 years (1-15) p p p




According to the Florida Contractors Manual, a Model Business Plan should
p p p p p p p p p p p



include an equity structure of total ownership divided by total capitalization
p p p p p p p p p p p



of a _______ ratio. - ..........ANSWER.......A. 1 to 1 (1-18)
p p p p p p p p p




A model business plan should include what personal information? -
p p p p p p p p p



p ..........ANSWER.......D. Last three years of personal income tax returns. (1- p p p p p p p p p



19)

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Unless you are a sole proprietor, federal form SS-
p p p p p p p p



4 must be filed on or before the: -
p p p p p p p p



p ..........ANSWER.......A. seventh day after the date on which business begins ( p p p p p p p p p p



1-20)



Occupational licenses may be required for every business and are issued by t
p p p p p p p p p p p p



he: - ..........ANSWER.......B.counties and cities (1-21)
p p p p p




Which agency oversees engineers in the State of Florida? -
p p p p p p p p p



p ..........ANSWER.......B. Board of Professional Engineers (1-22) p p p p p




How are Florida sales tax reported and paid? -
p p p p p p p p



p ..........ANSWER.......A. Reported on form DR-15- p p p p



CS and paid on a monthly basis (1-23)
p p p p p p p




True or False: p p




According to the Florida Contractors Manual, a partnership can be dissolved
p p p p p p p p p p



p for all of the following reasons:
p p p p p p




>death of a partner p p p p




>bankruptcy of a partner p p p




>by order of the Florida DBPR
p p p p p p




>by court degree under the Partnership Act - ..........ANSWER.......False.
p p p p p p p p

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A Partnership cannot be dissolved by order of the Florida DBPR (1-29)
p p p p p p p p p p p




Florida Statutes (Chapter 489) provides for the licensure and regulation of al
p p p p p p p p p p p



l types of contractors in Florida and are divided into: -
p p p p p p p p p p



p ..........ANSWER.......D. construction contracting, electrical and alarm syste p p p p p p



ms contracting, and septic tank contracting (2-5)
p p p p p p




18. According to the Contractors Manual, who is required to be licensed und
p p p p p p p p p p p p



er Chapter 489.103 of the Florida Statues? -
p p p p p p p



p ..........ANSWER.......C. persons performing small remodeling jobs with a co p p p p p p p p



ntract price of less than $2,500 (2-6, 2-7, 2-63 to 68, 489.103)
p p p p p p p p p p p




True or False: p p




Construction projects for Bridges, Rail roads, and streets do not requires a li
p p p p p p p p p p p p



censed general contractor? - ..........ANSWER.......True
p p p p




BUT, service stations (2-6; 2-
p p p p



63, 489.103(1)) Require a license general contractor.
p p p p p p




True or False: p p