BUSINESS LAW AND PROJECT MANAGEMENT
STUDY GUIDE 2026 QUESTIONS AND
ANSWERS
◉ In NC public contracts, payment to the subcontractor must be
made within ____ days of the periodic or final payment made to the
general contractor.
1. 5
2. 10
3. 7
4. 30. Answer: 3. 7 (BM 14-11)
◉ Time cards must be kept for a minimum of:
1. 3 years
2. 4 years
3. 5 years
4. 10 years. Answer: 2. 4 years (BM)
◉ The National Association of State Licensing Agency (NASCLA) was
formed in:
1. 1962
2. 1974
,3. 1945
4. 1932. Answer: 1. 1962 (BM next to last page)
◉ Successful contractors understand that they:
1. should assume the responsibility of all those working for them
including all subcontractors
2. should buy liability insurance to cover those working for him
including his subcontractors
3. should shift the responsibility or liability for risk to the other
persons or parties. Answer: 3. Should shift the responsibility or
liability for risk to the other persons or parties. (BM)
◉ The method of scheduling that illustrates the interdependent
relationship of tasks is:
1. PCM
2. CPM
3. MCP
4. CMP. Answer: 2. CPM (BM 9-5)
◉ As of this edition, there are _____ different legal entities from which
your business can choose.
1. 2
2. 4
,3. 5
4. 8. Answer: 3. 5 (BM 2-1)
◉ The following questions should be asked when evaluating the
type of work on which to bid:
1. Does the work consist of the type of work the company does
2. does the location present special considerations
3. Both 1 and 2. Answer: 3. Both 1 and 2 (BM 7-1)
◉ Fair Labor Standards Act (FLSA) requires that overtime be paid at
least 1.5 times the employee's hourly rate.
1. True
2. False. Answer: 1. True (BM 11-4)
◉ Two primary ways of doing accounting are:
I. FIFO, II. Cash, III. LIFO, IV. Accrual
1. I
2. I & II
3. II
4. II & IV. Answer: 4. II & IV (BM 14-8)
, ◉ Estimating is simply the process by which the contractor
determines the cost of completing a project.
1. True
2. False. Answer: 1. True (BM 7-2)
◉ The balance sheet shows the financial conditions of a company:
1. at a point in time
2. over a given period of time
3. both A&B
4. none of the above. Answer: 1. At a given point in time (BM 14-3)
◉ The employer's liability for a worker's injuries is limited by
Worker's Compensation coverage
1. True
2. False. Answer: 1. True (BM 4-5)
◉ OSHA requires that injury or illness forms 300, 300A, & 301 must
be completed and retained for _____ years.
1. 30 years
2. 10 years
3. 7 years
4. 5 years. Answer: 4. 5 years (BM 12-4)
STUDY GUIDE 2026 QUESTIONS AND
ANSWERS
◉ In NC public contracts, payment to the subcontractor must be
made within ____ days of the periodic or final payment made to the
general contractor.
1. 5
2. 10
3. 7
4. 30. Answer: 3. 7 (BM 14-11)
◉ Time cards must be kept for a minimum of:
1. 3 years
2. 4 years
3. 5 years
4. 10 years. Answer: 2. 4 years (BM)
◉ The National Association of State Licensing Agency (NASCLA) was
formed in:
1. 1962
2. 1974
,3. 1945
4. 1932. Answer: 1. 1962 (BM next to last page)
◉ Successful contractors understand that they:
1. should assume the responsibility of all those working for them
including all subcontractors
2. should buy liability insurance to cover those working for him
including his subcontractors
3. should shift the responsibility or liability for risk to the other
persons or parties. Answer: 3. Should shift the responsibility or
liability for risk to the other persons or parties. (BM)
◉ The method of scheduling that illustrates the interdependent
relationship of tasks is:
1. PCM
2. CPM
3. MCP
4. CMP. Answer: 2. CPM (BM 9-5)
◉ As of this edition, there are _____ different legal entities from which
your business can choose.
1. 2
2. 4
,3. 5
4. 8. Answer: 3. 5 (BM 2-1)
◉ The following questions should be asked when evaluating the
type of work on which to bid:
1. Does the work consist of the type of work the company does
2. does the location present special considerations
3. Both 1 and 2. Answer: 3. Both 1 and 2 (BM 7-1)
◉ Fair Labor Standards Act (FLSA) requires that overtime be paid at
least 1.5 times the employee's hourly rate.
1. True
2. False. Answer: 1. True (BM 11-4)
◉ Two primary ways of doing accounting are:
I. FIFO, II. Cash, III. LIFO, IV. Accrual
1. I
2. I & II
3. II
4. II & IV. Answer: 4. II & IV (BM 14-8)
, ◉ Estimating is simply the process by which the contractor
determines the cost of completing a project.
1. True
2. False. Answer: 1. True (BM 7-2)
◉ The balance sheet shows the financial conditions of a company:
1. at a point in time
2. over a given period of time
3. both A&B
4. none of the above. Answer: 1. At a given point in time (BM 14-3)
◉ The employer's liability for a worker's injuries is limited by
Worker's Compensation coverage
1. True
2. False. Answer: 1. True (BM 4-5)
◉ OSHA requires that injury or illness forms 300, 300A, & 301 must
be completed and retained for _____ years.
1. 30 years
2. 10 years
3. 7 years
4. 5 years. Answer: 4. 5 years (BM 12-4)
