NASCLA Test 1 Exam Questions with Correct Answers

NASCLA Test 1 Exam Questions with Correct Answers ____ and _____ are two essential parts to a business plan - answer1. Planning Tool 2. Loan Document 3. Investor Document 4. Benchmarking Tool Select two standard components of a business plan - answer1. Marking Strategy 2. Executive Strategy _____ is the biggest drawback of a sole proprietorship. - answerUnlimited Personal Liability If you are a sole proprietor and complete work under a name that is not your own, you would be required to file a _____ with local or state government. - answerFictitious Name Certificate You ____ be held liable in a Partnership for the dealings/behavior of your partner if completed on behalf of your company. - answerCan A crucial drawback of a _____ is double taxation. - answerC Corporation The person(s) in charge of a corporation is held responsible, to pay out of their pocket, for the bills still outstanding of that corporation. - answerFalse The biggest benefit of creating a ______ is that you avoid double taxation. - answerS Corporation The benefit of have a _______ is that Federal tax is only filed on earnings dispersed to its representatives. - answerLimited Liability Corporation Form _____ is mandatory to be assigned as an S Corporation. - answerForm 2553 Insurance enhances your protection from ______ and theft. - answerAccidents _____ Insurance will protect you from accidents/loss associated to your belongings as well as the companies. - answerProperty Insurance ________ Insurance will protect the structure being built and the materials at that location. - answerBuilders' Risk Builders Risk insurance will protect your personal belongings and materials if it is at the location. - answerFalse A(n) ______ _______ will protect against movable machinery left at the location or while being transported. - answerEquipment Floater ______ will protect against accidents/damages to visitors or items the company does not own. - answerCommercial General Liability The _____ covers the cost on the premium for Workers Compensation. - answerEmployer A ____ bond promises the person building will complete the job for the amount quoted, will sign the agreement and will provide a ____ and ____ bond. - answerBid Performance Payment A ____ bond promises that the job will be finished within the scope of the agreement. - answerPayment The Miller Act calls for _____ and _____ bonds for all Federal projects costing more than $100,000. - answerPerformance Payment A ____ bond promises to subcontractors and vendors they will be compensated for their efforts and materials. - answerPayment A _____ policy groups property and liability into one policy so that only one premium for both has to be paid. - answerBusiness Owner An estimator has several aspects of a project to consider when deciding to place a bid. Select all that apply. - answer1. Location 2. Risk 3. Resources 4. All of the above A _____ is not part of a bid. - answerChange Order If you provide a bid and then have to go back and modify it before it is required, the modifications would be called a(n) _________. - answerAddendum If you are a contractor and you collaborate with subcontractors who have not put in a proposal for a certain project in order to propose less, that would be an example of _______. - answerBid Shopping If several contractors collaborate in order to secure the job, this is an example of _______. - answerBid Rigging There are certain documents that are re