business and finance. (part i) seminar handout 250 q & a c

Business and Finance. (Part I) Seminar Handout

250 Q & A

C ONTRACTORS XAM CHOOL, Inc.

E S WWW.ContractorsExamSchool.corn

Hollywood: 6750 Pembroke Road Hollywood, FL. 33023 Phone: (954) 963-5444 Fax:(954) 963-2872 E-Mail: [email protected] E-Mail: [email protected]

West Palm Bch: 2424-A North Congress Ave. West Palm Beach, FL. 33409 Phone: (561) 471-1828 Fax: (561) 687-2205

Fort Myers: 11601-11 Cleveland Ave. Fort Myers, FL. 33907 Phone: (239) 275-7621 Fax: (239) 275-7690

Miami-Dade Area (Medley): 7911 N.W. 72nd Ave. Suite #217 Medley, FL. 33166 Phone: (305) 620-2277 Fax: (305) 885-3118

Tampa Area (Brandon): 1213 N. Parsons Ave. Brandon, FL. 33510 Phone: (813) 684-1161 Fax: (813) 657-2262 E-Mail: [email protected]

CONTRACTORS MANUAL & OSHA

1. In a general partnership all partner are

A. Responsible for all corporate debts B. Responsible for their own per(Okal debts` C. Responsible for all partnershirAle ts D. B and C are correct

2. A Corporation is created by

A. Agreement ,,, B. Filing -Abe corporate paper- C. Filind-ttie--corpc4te I7Pe , i3r D 4R e g i s t er w ith the .4erk of tfra4urt in the county in which the principle

'-,', 'business islocated

Ad ,,,),

In a limite partnership the limited partne has ,,,,j',voice or vote in „ , _, ,,,,,..„,.„. ,„ent.

g, matters -of:managem ,,.

B. Limited cTotal

The AdVantage of the corporate form °A nership)is-,

en,dirRited record keepin andB are correct

5. What is NOT a disadvantage of a corporation?

A. Has potential for double taxation B. Recordkeeping can be extensive C. Exemption of stockholders from personal lia D. Closely regulated

tithe state government witl-rthe federal government

Occasional

A. Perpetual life B. Continuity

6. The type of corporation where losses are passed dir ctly to slOckholder \q-k

must be in compliance with the

A. Chapter 607 Florida Statutes B. Florida General Corporation Act C. Federal Corporation Act D. A & B are correct

CONTRACTORS EXAM SCHOOL

7. A general Partnership requires only

A. Filing fees with the department of state B. Investing capitol in a business C. Filing registration under the Fictitious Name Ac, D. Compliance with state and local licensing requi ernents

8. A Corporation wishing to be taxed a0a pa ergs , ip w d beco

A. An employee stock OwnerOb,ip Corpcption B. A limited partnership C. An "S" Corporation D. A general corporation

9. Fictitious Names ace3talid fo

A.

Ov activate his plumbi4gense and open a siness name under the fidittbus name act as . Paul has to file fattlis Sg=14itumber with

B. 3

10> Paul Plumber has'decide businePaul bu

PlUmbng CornRany

4

D. 5

ys;after boSiriess has op ened.

need a'FEIN

C. USC-1 R-405

12. What form number is used to register with theFederaJ Government

11. If you are planning to operate and PM -Mote AO 4usiness to the pubijc, usin 44k ZN.

a business name other than your ow .Nacne or‘he name of your corporation, you must comply with the 41,., ?

A. Florida Department of Commerce B. Fictitious Name Act C. Florida Department of State D. Internal Revenue Service

A. DR-1 B. SS-4

13. What form number is used to receive your State of Florida Sales Tax number

A. SS-4 B. DR-1

C. DR-405 D. UCS-1

2 CONTRACTORS EXAM SCHOOL

14. Dissolution of a corporate entity refers to the formal termination of corporate existence as proscribe by law, refers specifically to the collection of corporate assets and the payment of corporate obligation

A. Shutting down

C. Collection B. Dissolution

D. Liquidation

15. When a partnership comes to an end, when partners cease to carry on the partner only for the "Winding up" of the partnersRip.

poinenzne iUt continue

A. Termination B. Dissolution

Wou up . Windin-gp

16. CES's gross taxab e4.,seles fo amount of sales tax d u the use Tax report was file; 'a time

44,

A. $1,48844 $1,527010,

reA "

$25"8-50 00 What is the saesttax rate is 6% and the sales and

anner

C. $1,482.97 D. $1,140.75

certificate or '17. A ,ovikrig an 'unregistere ,s,person to use a ano her may e"apunds for a total fin o

ntity wteknew and should hay= knowmot he vial

tion of :far then actor and the 4t).

18. The board may revoke, suspend or deny-issuance: or renewal of the r certificate or registration of the contractor'6Htnpose an administrative fine do not exceed

A. $500.00

C. $1,000.00 B. $750.00

D. $5,000.00 T*,

19. All but the following is a good way to avoid contractor working for you reclassified as an

-.,1 g a ona fide Tncrependen . .. =._,

IRS? loyeelzdhe li-<s? --

A. Send him a 1099 at the end of the year B. Base compensation only on work performed - e wog ed C. Do not hire additional workers to assist him D. Have a written agreement making it clear he is independent

3


20. A person other than the qualifying agent who, with the approval of the board assumes personally responsibility for all financial aspects of the business is know as

A. Financial qualifier B. Financially responsible officer C. Financially responsible agent D. None of the above - Contractor ultimately re-

21. Any person is eligible to seek recovery frO the uctior ustry Recovery Fund after having made Claim art. exha 1 g the ligir s of any 44A--,Rii ,,,,.. available bond, cash bond, surety, gilaranteeN,INarranty, t7: letter of credit, or policy of insurance, if he has; one of which of: the faldwing:

N.,,.,

t in a court of competent A. Such person jurisdiction

0 .t.,:; ,4 B. The claimanfhaS made„a i diligerit empt to collect C. Claim for recovery is m64 -withini;:ji6ars from the time of the act or from ,,, , ,:z,-, , the timeAhe act was discovered :, liPsuch ' parert,---, is noCkpersoliwho is precluded by th- from making a

. ,„i-,,, =, i for recovery

A project conartler'ed abandoned aftek ,terminates e project without notification la:

jus .rcause.

A B. 60

tractor rterand

23. A building contractor must maintain a valdei sof, of general liabili insurance and $ for property damage '- -oTo rage in order to keep his license active.

A. 100,000.00 - 25,000.00 C. 300,000.00 - 30,000:4 B. 250,000.00 - 30,000.00 D. 300,000.00 - .400.06

24. A joint venture may submit a bid on a constructsO following circumstances:

A. The licensed contractor must have full authority to e Zpduct, e contracting business

B. There must be a written joint venture agreement C. The licensed contractor must qualify all business entities participating in

the joint venture within 30 days D. Copies of the joint venture agreement must be approved by the board

prior to bid


C. 2, 3, 5 arcl.„6 only D. 1, 2;..3, and.\a,.only

C. $6100.00 D. $6,504:700

25. Tom Smith is an out of state licensed contractor. His Company TS Construction Inc: wishes to build a project in Florida. Under Florida law, which of the following is legal and might attar TS Construction, Inc to build the project in Florida?

1. The out of State Corporation and the contractor mush examined , and licensed under Florida law only.

2. Tom Smith, a license contractor in another Statp, may re Crest reciprocityfor his license in Florida if the licensing Fe

,, uirert-te are e ikalent to

those found in Florida 3. TS Construction, Inc may„.. orm a foint ventur nse Florida

contractor 4. TS Construction, In eed no lithrts'ed in Florida to perform one job

under FL Law 17'4

5. Tom Smith and:TS C'OnstructiOn c may'quaufy for a one time registration to build a Florida projeCt

6. Tom Sml may take a Florida contractors exam and, become a qualifying agent fir Construction,

26 /Vhat is aximum fine for an unticensed owner &Id qualify‘g.agent Who conceal, information from a sup lier that loused a financial problem with a„ building supply house for a jobln rogret?

A. $5,000.00 B. $10,000.00

27. An unlicensed contractor causes $5,000.00 in'damages to a consu because of negligence. The consumer is entitled to $ Plus alto fees and court costs.

A. $5,000.00 B. $10,000.00

5


28. Which of the following is NOT true with respect to the responsibilities of the primary qualifying agent and a secondary qualifying agent?

A. The primary qualifying agent is equally responsible for all f elwork at all site

B. The secondary agent is responsible for the su; •ervision-o hich he has pulled permits

C. The secondary agent is responsible f' matters

D. The primary agent is jointly respO

29. Revenue is recorded in theNin ncial r

ible fornanc

A. Journal entries B. Posting

C. TrariVerring D. BookkeeRing

A. When they are pal B. When the goods or services pass 4o the customer , C. As equity D. Only-after all cols involVectare par. rrtfull

30. The financial shaWs how the earnings onJ _ , ....,

:,:,,, -,::

w e arrived afand over what period of time is le A .•,„ ..„ ''....\ N

, . Yearti date balance Ak 4 -14' vb. Trial balance

.....,-fl

C. InOorne statement Statement of re, e

.balance sheet

31. The process of transferring informati applibabje ledger accounts is called

from th ournal to the

32. To keep from cluttering the general ledger you should creat details of the general ledger accounts.

A. Detailed ledgers C. Subsidiary ledge B. Secondary ledgers D. Journal ledgers

4k, .k

33. The limit on which the employer must pay the federal FUT is thelir'St of an employees annual wages.

A. 5,0000 B. 6,000

6


35. The accrual method of accounting

36. Roger i es, ed equity re n .artne

A.

34. The statement "things owned = claims against things owne rewritten as

can be

A. Income - Expenses = Net Income B. Assets - Liabilities = Net Worth C. Current Assets = Current Liabilities D. Assets = Liabilities - Net Worth

s into`® s cou

A. Only cash bills received a B. Only bills that hay C. When revenue an D. None of the

r incurred

3:TA 00.0 that i estmer aers in 07stmen

s At the end of the first year his s $ ,000.00 ear he takes on a he partnership will

37. e allowa

A. r B. Debi?

for doubtful accoun

38. Which of the following is NOT true with referelp, to corporate sto

A. Preferred stock may pay dividends to its owners, fixed i B. Preferred stock may pay dividends to its owners, percen 4$ C. Common stock has a fixed rate of return D. A corporation can have both preferred and •mmorvs

39. Transactions are recorded in the journal before

A. Balance sheet C. Accounts payable B. Income statement D. A & B are correct

7


Date dbdes tl.'Entry numbers

A. Chart of accounts B. Account numbers

A. Increase capitol B. Lower capitol

C. Acquire asset D. Lower net prbfi

41. in the journal are assigned accounts to 're debiting or crediting accounts with similar times

ce errdrtsuch

C. $8,333.33 D. Insufficient information td'cietermine

40. Expenses are the amounts that a company spends to provide services to its customers or to carry on its business, except amounts spent to

42. Maintenance supplies used d ring the ea shoul pe recorded as

A. Debit maintenance expense B. Credit maintenance sup Mies

43. Contractors allowed to eXOense up to $ . fiiwuipmer in thei ,year of purch

16,000k C. 17,P00

44. Allstate Sai74e Company uses anlayerage cost metho controlling inNtory. They originally purchased tO'blowernictor units for $300.00 on Jan22Two of the blower motor were used on jdf.;i'in Maibh. The company purchased an additional 20 blower motorsfor $55D,00 in April. If the .10 company needs to use 3 motors on other jolAtn June, what dolla amount would come out of inventory for June?

A. $80.01 B. $84.63 C. $90.00

45. A company secures an installment loan for $100,00 . ,004 Thelrea, is forty_ years at 10% ordinary interest. The monthly interest takbe paid a # e loan payment will be

A. $491.66 B. $833.33

46. All of the following are indirect costs of a construction project except

A. Payroll taxes on direct labor C. Temporary utilities B. Contract supervision D. Subcontractors

redif•naintenance expense and B are correct

(in- 20G1, or later) per year e, ratFr= v n depreciating

CONTRACTORS EXAM SCHOOL 8

47. An unsecured long term note payable is known as

A. Debentures C. Working capitol B. Line of credit D. A construction

48. A contract borrows $85,000.00. The bank char es an est ra !e 14% per annum and a 4% in discount pints which alkaken the proceeds of the loan. The effective interest rate will .b

A. 14% B. 14.23%

49. To facilitate collection of a

A. Billing B. A good attorney

1

er the secret is

C. Lettels and *phone calls ntation

50. What a ures ma, iagem ectiveness as shown by the returnsdated cihtsales a

A. B

ectify

A.•letion bond C. orma.1bon B. Ja s bond tenarlend

52. When a contractor has signed a contract o urnkey Project", r a ment will be paid to him after

A. The 1st of the month B. The 10th of the month C. The project has been completed and approved D. The 3rd month after signing the contract

53. The retainage receivable should not be included because it is due and payable

A. Before the contract is initiated B. When the contract is complete C. With the first draw D. Whenever the contractor has the money

A doc -

e TM, giverrE he contractor to the defects ins or materi a

ves 1 ent?

C. Gross pre it mar D. Profitabili atio


A. Estimate - Jqkc0st B. Estimate7 balar8e shee

54. If you calculate cash and marketable securities and accounts receivable divided by current liabilities, it will give you a snowin9::, our company's ability to pay short term debts.

A. Debt to equity B. Quick ratio

C. Current ratio D. Profit m

55. A change order can be initiated by the

A. Lender or owner B. Owner or superintendent

Owne one oflhe abo

56. For a contractor to be able to M. esure ftmerform „Rce of a certain job as it progresses he must hare h14 .,, re'co4s against his _

4.4 glance sheet - job cost ob cost - gener ledger

57. A - 9e2ri,tract OftMion thatRrovi es r adjustments of t of specific items as coridikorps changeis

Penaltylq.lause Conticfp.ayment-15'ond

C. Arvacalatio Lettekgt agre

58. Ti'ie,„ method of accounting is required foi- :contrac $10,000 . 000 00 in sales.

A. Percentage of completion C. Cas B. completed contracts D. None e above

oars with more than

59. When is it common practice for the owner to authorize the'Xart o [before he has an executed and signed contract in his„ ossess: qi

A. When the contractor with whom he is dealiq has glen the B. When the contractor provides the owner wit id bid C. When the owner has issued the contractor a't er of intqn, D. This cannot be legally enforced under the Statutjot Fratiti

V4',$

60. The state of Florida requires the filing of a Florida IntaiNdibies Tax return which is due by the of each year.

A. Jan. 31st

C. June 30th B. Feb. 15th

D. April 15th


61. Which of the following are included in job cost records?

Or listicn uncial pic

A. Small hand tools C. Indirect labor B. Direct laborers D. All of the above

62. With regard to revenue recognition, which of the folio

A. Completed contract method is easiee acco B. % of completion method gives a mor C. Some contractors use both methods D. Completed contract method cafft 1,y be us, d onlO s:tpompieted within

one fiscal year

63. A contractor has a contract for 900330.- _-kle anfiCipated total cost for the job to be $71 480.00.1:70‘has Sbent $34,250,00 to date, the job is % complete. =:

A.39% B. 4:

64. CES has acoEtt_ tact for January 31stIag the billed 380 to ate

IA 850,000.00. The job 23% co lete as of , -, %71 completion methodbf,accoUnting, they have

v ---.4. . . The month and. accountinTrecordszhould show

x"14,120 unearned income arning-in..excesl- of billings D'..:cannot co pute cost to date needed

Use the following information for question 65 & 66

Total assets $2,984000.00 Current assets 2,476,380.00 Current liabilities 1,976,250.00 Long term liabilities 26,400.00; Stockholders Equity 981,950.00

B. V4020 retainage

GIVEN:

C48% r,D. 50%

65. The current ratio of the company is:

A. 1.25 to 1 B. 1.52 to 1 C. 1.99 to 1

66. The debt to equity ratio is:

A. 2.01 to 1 B. 2.04 to 1

C. 2.07 to 1 D. 2.09 to 1

11


67. A small business with only one employee owes less than $1,000.00 in withheld income and FICA taxes at the end of the month. His lookback period deposits were less than $50,000.00. When should be deposited?

A. By the end of the first week of the new quarter B. You do not have to deposit any of thejnorib and wiIF given edit at

the end of C. At the end of the year D. By the 15th of the next month

68. If $50,000.00 or more is pat "n with,eld incomekand F taxes during the four quarters of yo •okba eriod, deposit must be made

A. Semiweekly , B. Within 15 days after C. WithiiNle firstkonth ghth month period D. By th equarte -'<- 4 e of th ,,-

69. A taxet are due by ,.-

A. T Ath of onth following the,of the quarter B. By itth day

e next mon4,folloWitg\the qua ---4.;_=-

,By the, day of the 1st month-Ver theluarter en 4;,,,

;Q:,,,,„

' : ., %,, , r

the alia of an eight monthly p -efiod eA

70. Form"941 must be filed for the months'aty, August and September By

A. April 30 B. July 31

C. October 31 D. Janua

71. You will be considered to have satisfied the deposit requireAnts if y deposit timely at least % of your liability or if the sho artdeposi does not exceed

A. 95% - $500.00 C. 95% - $.00 B. 98% - $500.00 C. 98% - $100 .700

72. An employee using the percentage method for incorrk ax withholding will be able to deduct in withholding allowance if pajcc I is paid monthly. Assume 4 withholding allowances.

A. $208.33 B. $1,016.98

C. $1,900.00 D. $2,000.00

ighth"Month period


B. SS-5 C. 1099 Misc. A. SS-4

ect tcY#,Renal

B. 10 % D. 2 A. 15 %

73. Form is filed with Immigration & Naturalization to d mine if a potential employee is legally able to work..

74. If a tax deposit is made 18 days late, it b %.

75. Which of the following emp 1995 tax returns?

redit on their

rsity and regular

A. An emplo k ith o iild an 20.000.00 in wages. B. An ern loye w h on 'ciid an sNtthan $22,000.00 in wages. .*i C. An ern oyee wone cftir and lei,s'' han $24,000 i in wages. D. All of ove.

A Se 941?

sited taxes when due for t hat is e latest date he may

Septe 30th vember 10th

77. A student working for a private school, c attending classes is exempt from

C. FIT, FICA and FUT D. Social Security an

78. A son hired his 65 year old father to work in his con the following taxes is the company NOT requ

A. Social Security and Medicare B. Income taxes only. C. Medicare only. D. Unemployment.

A. FIT B. FIT and FICA

13


79. An employer has 4 employees: # 1 earns $6,500.00 # 2 earns $8,500.00 # 3 earns $4,500.00 # 4 earns $22,000.00

What is the total Federal FUTA unemplqment camp5ensatidn tax the employer must pay if he has paid .7ji,,state TA taxes and is eligible for a maximum state credit?

A. $43.00

B. $25„00 6:4.$1,125. 00

80. If you want the 1 S to file form

A. SS -6 B. S

ether a*orker is an employee or not,

S-4 D. ES-8

emniffes for loss of or damage to a bit) under

A. Named'-peril builder's risk insurance. B. Extencoverage endorsement C gliding tilurance. D. BUitcler's risk insurance.

82. Builder Risk Insurance covers all but

A. Materials and supplies pertaining to constrik on. B. Materials and supplies while in transit to the job site. C. Contractor's tools and construction equipment on the pi-004es. D. Lost specifications, drawings, or other documentsN,

83. Completed operations Liability Insurance coverage hdkipeen eXf by 7.4 the courts to cover claims caused by

A. Owner negligence. B. The completed and accepted rule. C. Dangerous latent conditions. D. Surveying and engineering defects.

81. A con po iG ruction.


C. Finances D. All of the above

84. A contractor can protect himself against claims far other than his property and employees by having a/an insurance policy.

A. Workers Compensation B. All builders risk C. Performance bond D. General Liabli

85. A fidelity bond insures against lass due to

A. Loss of securities in safety deposit orlafgery. B. Embezzlement or property stole by etiikyee C. Your partner introducing countg t currency into ,.1Dusines... D. Your partner taking over l) vnersh4 of the business

86. A type of insurance insurance cove • e's

.er areas that fall between other

A. Employers Liability Ins B. WraP-:ui:--Insuranc,e C.,Umbrelfansuran4 D tompreliAa iSve Insurance

Builde Risk PstepAilirns are paid in two ways. The., tare th the cora rated varti&lprm. The reportingfOrM is paP -1,...‘,

Month) B ?Yearly C. One -time at 50% of the full term rate D. On a monthly basis at 66-2/3% of the fpil term ra

88. Suretyship is a three party agreement betweethe

A. Contractor, surety and owner B. Obligee, surety and contractor C. Contractor, guarantor and owner D. All of the above

taing form or is‘

89. A surety expects a contractor to commit all of hig=;7.--,,„., towards completion of the obligation undertaken by the corlector and4uaranteed by the surety. -474

A. Resources, time B. Knowledge

15


A. 70% - 80% B. 80% - 100%

92. The cost for a bon B contract for era

ty associations rate for a Class 0,000.00 contract is

A. $2,225.00 3,225.00 B. $24250:00 D032,250.00

'F 7 93. ASof Septet4er 1st, 97, the minimum wage shout e less than

C $

90. The method of Income Recognition most preferred by the surety is the method.

A. Cash C. Pure accrualt B. Completed Contract. D. % completed

91. SBA Bonding Guarantee program guara a

tees contractor newly started, minority, or disadvantage

94. CTShas Cfackded to build a new o tc s buil• In Fl. derda , Florida. Th\eliave asked all of their employAsilo sign Union licke Agreement within 30 days of being hired. If an employee doeibot sign this agreem t what action can CEES take ?

A. Discharge the employee. B. Make the employee liable for past union dues. C. No action can be taken against the employee. D. Suspend the employee for 10 working days.

95. A daily job rate is $40.00. The job takes 12 ht0 to cc! applies?

A. The $40.00 is all that is required to be paid. B. Since 12 hours have been worked, the minimum wage is less than

$5.15/hour making this arrangement in violation orth)vage/hour laws. C. Overtime only applies to a workweek in excess of 401iburs. The wage

and hour laws do not apply. D. None of the above.


96. Under a "Union Shop" agreement, an employee is forced to join a union within days of hire or the effective date of the agreement.

A. 15 B. 30 C. 45

97. A clean up person is hired for one day and isTpeid $50Q He Wat from 7 Am to 8 PM taking one hour off for lunch. WFihiapplie0

A. The contractor owes the worke an additional $11.-80

-- B. Overtime is not required C. This is a legal employment situalign D. The minimum wage or overtime provisions co not apply

98. A salaried non-exernptemployeewill bepard overtime based on which of the following ? A

A. Divrgithe salary by the number okhours which the salary is intended to co m PeAate Nkk

J4 B. Pay all o

,vertime at tiriips the regular rate, wl rcb is, established by

salary by 40 hour C s . Salaried effiplOyees are categorized as , exemp and do.riOf qualify for

oveftirri e. Salartea,emplOyees are categorized;NAon-exelit01,and ct gtAualify for overtime.

'* ,44

99. Jone. a salaried employee, earns $25400.00 wear and his salary

based on a 40hour work week. He works,50 hou ' 110.ring the current week. Jones is classified as a non-exemptetpploAe. His take home salary for the week is $ without any deductions for FIT or F Select closest answer.

A. $1,250.00

C. $607.11 B. $ 530.00

D. $661.10

100. "Soft records" must be kept for years ac? rdinqV the FL

A. 1

B. 2 C. 3

101. In Florida the employment of anyone under construction is prohibited.

yearsof age in

A.15 B.16

C. 17 D. 18


C. Dtc men Q. Lette jrom

sho#ing prootof age art

102. According to FLSA, sales and purchases records must be kept for years.

A. 1

B. 2 C. 3

103. Employer may protect themselves from unit ntiona he child labor provisions by keeping a/an on r eac Q ed.

A. l-9 B. Working permit

i 104. Which of the following s o a penalty for failue to coriiply with the FLSA?

A. Double damage% ack par B. Attorneysfies andt ack pa C. Double dama-ges andJ.otentia D. Im nsonmentand term ation

105. • ual pa Qvision's 4

,under e LSA prohibit pay differ ntials based on

*. $, on JobsAhat require equal skill, effort abd responsibility. ``"

ace C. Sex D.1\filbrial origin

10

der th0 Florida Human Rights A , t, courtsre aafftzed tolssue orders pr ibitinddiscriminatory practice,%Rroviding-allirmatiqeelief and award

ensatory damages. Punitive damages afe)imitedto ''''' *:7 ,-

A. $100,00.00 B. $500,000.00 C. $100,000.00 plus reasonable attorneys fees D. $500,000.00 plus reasonable attorneys fees

107. The Florida Clean Air Act prohibits

A. Smoking in public places B. Smoking on construction sites C. Smoking in public places except for designate D. Smoking a cigar in public

108. The weekly benefit amount available to an employee der Florida's Unemployment Compensation Law is limited to

A. $175.00 B. $200.00 C. $210.00

D. $250.00


109. Florida Unemployment Compensation records must be maintained for period of

A. 6 months

C. 5 years B. 4 years

D. 6 years

110. Failure to file unemployment reports time! WI of per month or fraction of a mord

A. $10.00 B. $15.00

charge tinque're

$25.00

ult in

$20.00

111. Which of the following information rhbst be mainained With regard to unemployment recut keeping :' A. Personal irifam,atiosh.and hours!' yorked strajly and weekly. B. Straight time earnings rated and overtime pay. C. DedUOtions anhdditiOnsAo wages kAllofile'above.‘ -

11.2. A qualified beaeficiary W\ ho elects continuatiorCeRveraga;u0er COBRA, can 'betequiredjclay for the coverage, Whichost casWcnnot be greatekth;an of the "applicabl&premium'

4.1-00 B. 102

113. The 1lL:9 must be completed by the emptoser and:employee within business days from the day the employee,begins work.

sv.‘

D. 10 A.3 B.5 C. 7

114. An employee works for an employer for 20 days. How longMust employer keep the 1-9 form? s. A. 1 year B. 2 years C. 3 years - '47:: 5 year

115. An employee leaves an employer after 7 years. How long mustthe employer keep the 1-9 form?

A. 1 year B. 3 years C. 5 years

116. An employee leaves an employer after 21/2 years. How long must the employer keep the 1-9 form?

A. 1 year B. 3 years

C. 3.5 years D. 5 years


A. Nature and effects B. Toxicity level

enera ,,use tAntitoxin

118. An employer must furnish employees:Mirth instructions o ' o egch W-14

toxic substance that is present kthe wo place? , 1- v.,.

C. Federal Rightl,1/4 D. FederatZ. ankruptp

117. The prohibits discrimination against any employesolely because of bankruptcy related reasons.

A. Florida Bankruptcy Code B. Federal Insolvent Code

119. A carpenter ishire Q install 2" 00 line rjpet of baseboard on a project on a piecewOrKpasisT will be paid $2:95per 100 linear feet of baseboard. Fie`takes oheL our for-1 ch each day and works the following

---1,.. schecLujel

,.,4",

illursda M - 6PM Friday i\ - -- ,,ft M - 6P Saturday 7 Altir- 6PM 1,--* vs On Say' gy morning the carpent‘haTtk-work 3 ha , rs clangspace for adclitionaTlaterials delivery. The'::OQntractteagreedtk:ibay hik;;$13 00 for

c

extra W'c'irk. The total compensation that tito be Atha the carpenter is

%= , ?

A. $240.50 B. $253.50

120. The Consumer Credit Protection Act provides:

A. Restricts the amount an individual's earnings cab e subj garnishment.

B. Maximum garnishment is 25% of weekly citsposab times minimum wage.

C. Prohibits discharge or disclosure of employee,stle to tshment. D. All of the above.

121. An employee who willfully refuses to use a safety appterice or observe a safety rule may be paid only percent of the amount of compensation allowed under the statute.

A. 25

B. 50 C. 75

D. 100

Sunday 7AM - 6P, Monday AM - 6P


122. According to Chapter 440 FL Statutes, every employer shall, as a condition of receiving a show proof that Worker's Compensation coverage has been secured or that he has established exe, a pt status.

A. Contractor license C. Building perrni B. Final inspection D. Craw c eck

123. The maximum funeral and death benefitpaymen

A. $5,000.00 funeral - $100,00040 dea B. $7,500.00 funeral - $150,000:01Weath.

ath. $1,000.00 funeral - $56' ela000.061 h. D. Nothing is paid at death'

124. The carrier of &self insured ern 0xer shalVwithin days of receipt of the form repbiiiAg ink ry , mail thelqtrn containing the information required by this subsectron, to the:division.

C. 14 D. 30

emiums is

A An employer/employee agreenient for theemploye , ay portion of t premium.

B. Anagreement by the employee ancreTnploye4for the employee to

C. The employer must pay all the premiurnSifor the compensation on waive his right to compensation undetcertain

behalf of the employee. D. None of the above.

126. When an employer is billed for medical expenses inexcess„? pat w is paid by the workers compensation insurance company, ane:(0--the absence of a deductible or co-pay provision, employer shcit.ircr-\

A. Pay it C. Give it to employee ay oTha B. Ignore it, it is inappropriate D. None of the above

, 127. If the Department of Labor & Employment Security determines a

contractor does not has the required Workers Compensation coverage, he may be fined $

A. 5.00

C. 1,000.00 + 100/Day B. 50.00

D. 5,000.00

•-•=N 125k WhLgtiV, the

allowable`" olibwing concerning payrntnt of wo Nts

`P.


128. Workers Compensation Insurance is required by a construction employer with or more employees.

A. 1 B. 2

C. 3

129. officers of a corporation may elect to .die exemp. compensation.

A. All B. No more than 3

C. Orkfactive Only %active

130. What portion of the FloridaMorkerompenSalion Insufance payment may be made by theemployees?

\ 131. If any installment oP:competisation payable without ai=r ward is not paid

,IN within 7 Ef4. safter it biecometAle there shall be aadedto such ..., ,

,,,, il''',

,, ,..-

installment amamoun Rual to

A. 5%Oc.instaltMe- qt or $5.00 C. 1't°, of installment or 0'0 ,,a ,.., ,...,-.!,t. ,,,,

B. 10°R-Otinstalltherit or $5.00 20°76- Of, installMenst or $5 .,„ , A. t

132. An employee is off the job for 5 wekks. He is'dlessified=a temporary total _,.., -,:,,,, disabled. He normally work 40 hours in is paid per hour. No vacation or overtime is applied. The,total workers comp benefit payable for the 5 week period is ?' " ,.t.,

A. $240.00 B. $960.00 C. $1,200:00 D. V,900.110'

133. If an employee is classified as temporary total disable anctcl -.A.

unemployment he is also eligible for of his prigs wag Comp benefits.

A. 40% B. 50% C. 75%

134. Employee Rogers earns $8.75 per hour and works 4,‘0\hours,,ying an average week. He is off the job with a temporary paftiapisability and is entitled to wage loss payments. While off the job, Rogets is employed part time at a restaurant as a cook working 20 hours during the week at $4.25 per hour. Assuming Rogers is not entitle to any other income or benefits, he will be paid $ per week for Workers Comp Wage loss Benefits.

A. $156.00 B. 150.00

C. $195.00 D. $280.00

A. 0% B. 10%

15° ',11',331/3% of average weekly wage


135. A carpenter was injured on a job related accident and could not return to work for four weeks. He then returned to work and worked20 hours per

week for four weeks. He returned to work with no permaneRtrjury after a total of eight weeks. His pay prior to injury was $820Aer hdrg or a 40 hour work week. What was the carpenters total workers comp , r efits payable during the first four weeks?

A. Less than $800.00 C. BAyeen $00,,,00 an 1,000.0 B. Between $800.00 - $900.00 D. Nagth a n 000 00

4z.N. 13 k6. If a subcontractor is not covered by: own or ers Compensation

Insurance, who is responsible for ht workers or1/4,the jObl

A. The SubcontraclOr B. The Owner. C. The General - contractor'

,..,..„.‘„. , D. Workers Comp,lnsurariee is not `requiredfor then

, .A z ., 7,,NS '4.., 137. A subcontractor who'Knowingty,btesents false informatiO4 as to existence

,,,A, , oftoyerage;', ,When therels in fact none, has O8mmitteCrs --,.., .

- ?i-' -..',, -----,

A. A%econd d6gre- emisdemeanor.

.. ..> A l B. A fliStdegree misdemeanor. ss.,

C, A second degree felony. a...A,,,,third degree felony.

138. A construction employer hires his 17 year old so ,towork 25 hours a week to do odd jobs around the office along with his regular crew of 6 men. -- .

t:,,,, Which of the following is FALSE pertainingtothe son?

y•

A. Exempt from federal Unemployment. B. Must pay overtime if his hours are over 40 per w,ee C. Exempt from Social Security and Medicare. D. Exempt from Workers Compensation.

139. A contractor can fulfill his Workers Comp Insuranoe obtigation by

A. Liability Coverage C. Having employees rejeo„h overage B. Heath & life insurance D. Self insurance


140. A construction company with 60 employees refuses to rehTe , or make work available for a previously injured employee, erAkt in osition that was 175 miles from the employees home. The emAYel wor compensation premium paid that year was $5394000.0 e empr&:er could be made to pay a fine of $ for thiOlolationk.

A. -0- you do not have to rehired B. $250.00 C. $2,000.00 D. $2,500.00

. 141. A employee was treafect,at anIC trpatiert clinic and released to go back to

work the same" day. Trie''botice a ury s„, be reported within days to the carrier

'-t....1i A. No notice is required

,..,

-LUDED from OSHA Recordk

A. A salt: ontradting firm operated\by 2 paqners ont ny em - toyer employing less thart>50 employees.

o ,

orking in the Virgin Is16 4-ds. aTon e is excluded.

143. The OSHA Act does NOT cover employersof

A. NASA employees B. Roadside maintenance workers C. Household workers D. Volunteer workers

.4:7X i 144. CES Contractors failed to keep a log of injuneszlpn its employees - otal

employment is 5 employees and 1 owner. TwO)iikries reported during the year, and CES does not participate in a statisticarsucvey Of,, a,scupattorial injuries and illnesses. What is the maximum penalqthat cart be assessed against CES Contractors for failure to keep a log of injuries on its employees?

A. $1,000.00 B. $400.00 C. -0- D. $5,000.00

145. The maximum fine for falsifying OSHA records is $

A. 2,000.00 B. 5,000.00 C. 7,000.00 D. 10,000.00


146. A/an is an injury which results from a work acciden or from exposure involving a single incident in the work environme

A. Instantaneous injury B. Occupational injury

C. Accident D. Occupational illnes

147. Treatment of is generally considekred fir's not need to be recorded.

A. Sprained ankle B. First degree burns

148. Contractors are requIrecito kee pertaining tocre'oordatile'occup4

A. A contractor momenta' to wort _during t same

employe falling from a ladder suffering sevete first-aid Arpent. Ari ernployepsuffering\a minor laceration requiring fit/ altqWed to return to work during the s ame dayn

sing requiring no

hird d gree b IXSplitting a ,'''.:proken toe

LL BtiAvhich Of the following records al injurtes and illnesses ?

onsciousness that is allowed to return

D. An'gRloyee suffering a breathing proVern wh);s1rans $14e' anott-Itto b.

149.r1,;. employee is injured on the Job drl'Monday,''August10th returning to „, work on August 31st. Assume no holidelys

k fell diking, his time away fro w

work. The employee is scheduled to woadays a4eek Monday throu Friday. The employee is Paid $ 6.00 per hour What is the total -fast work days involved ?

A.6 B.7

150. An OSHA Citation must be prominently displard atepear t alleged violation for days, or until it isOorrectetr,,whichev to warn employees of dangers that may exist.' ,"‘

A. 1

B. 2 C. 3

25


151. When an OSHA inspector wishes to inspect the contractors project and has a search warrant, which of the following apply:

A. The contractor or their representative shall hav, right ‘accompany the inspector.

B. The contractor has no rights, other than tno e faun C. The employer has 15 days to protestAte warrant. D. Only the employee request or complOnts may,binspetfe

152. During an inspection of the field eat1pment,-a contractor finds backhoe that is not in compliance wi the applicable requirements of OSHA. He •,w

A. Call an OSHA ins e„,ctor im 'ately. B. Place an oi4of ordettSi9n on ackho

‘;,. C. Lookiti the:COntrols'ftte der operable.

iN 4* D. Warn,f e backhoe operato:,,of th problem.

153. AnlemploWe:Ilf CESt-, ontraCfort informed the owner:of ,a*- oose plank in . thallboring Ot:trie office complex they were building. Th er ignored

''*' ra . ' §. , . , *-‘

the-% ima t ionk„ Several later an Cmployee8N

fell thro e plank t. . -N. breAtnTh-11•, is led.What is the maximurne alty p - th# - may be applied by OSHA ,.

„.-. What .. .,:. v

I'-ik Nli. a oo0.00 B. $5,000.00 $7,000.00

154. An employer has failed to post the requi.ed notiekrke has 39 employeh j:, and has written and implemented a Work4e Sgety and ikprogra r He provides a safe work place for his employees and has not biett4ted by OSHA in 5 years. OSHA has issued a citation as pen4Inor failure to post a notice. The employer has contested the citation antsthe-, penalty. The employers penalty can be?

A. $1,000.00 B. $600.00 C. $250.00:-":72

155. A contractor agrees with a subcontractor to divid,job sittAponst k les, such as providing safety programs, temporary sanitkion flaties, et c. Which applies?

A. This is not legal under OSHA rules. B. This is legal, however, the subcontractor and the contractor are held

liable. C. This is legal, however, the contractor cannot be relieved of overall

responsibility. D. The subcontractor can be held liable under OSHA rules.

should?


16

156. How often shall the contents of a first aid kit be checked at the jobsite ?

A. Once a month C. Once every 2 weeks B. Once a week D. Once every 6 momths

157. What is the minimum number of urinals andloilets sea employees ?

A. 1

B. 2

158. When working with asbestos on afbb that requires resp irators'' which of

°.%,,,, A. Respirators must furnis e at the:employee's cost. B. Respirators may bk

:6 rnishe the erriFiloyer's cost.

C. RespiratOti'iannof6'.--;require except by union regulations. "ve.,=, D. The 6mploye`1.-must furstrsh and ensure the use of the respirators.

159. When workplaces aremore thaci,..25 feet above the gra nd or water or Where the use of laddets, scaffolds etc are impracticar -I shall be , _ , !,, recii.41red. ' \

A.

Lifjacket B. Safety *fiat

',...

160. Kbalition sign will be identified by a-4- ?

,■

A. White tag, white letters on a red squfie B. White tag, white letters on a red oval with kblack square. C. Yellow tag, yellow letters or a black backgro =und. D. White tag, white letters on a black background.

161. Bricks stacks shall not be more than

feet in height.

A. 4 B.6 C.7

162. When masonry blocks are stacked higher than feet the stacks than be tapered back one-half block per tier above the top_level. , 1'

„„ -- P. SkSiIh:P.,ok

II of the abovet-

A.2 B.4 C.6 7

163. Lumber piles shall not exceed feet in height when handled manually.

A. 16

B. 20 C. 7

D. 6

the following is true?


A. 4-1/2 B. 4 C. 5-1/2

164. Scaffolds and their components shall be capable of supporting without failure at least times the maximum intended load.

165. The maximum permissible span for a 2 x 12 undresse scaffolding is when the workinatead is -60

A. 10" B. 8'

166. A stairway or ladderlshall b6rovide where there is break': -Aelevatt or ramp or hoist „Is pr d.

A. 17 13.'1'19

6' one of be abtve':;

s'-'-'\• - :stA

at all perbanel points of access %, 4nches or more and no runway

41‘ D. 49 41/2

167. w ich natural fibettro e suitable for conStuca on.

'119rade tp on B. N/ra nta

, ,t ,.-, , 4:0t,

168. -',, Rop -eare the strongest avqilable.

C. Hemp D. SisP,

' t 4 '

-'- ,,-4 \.,

D. Nykin I., -:;:t,,

'.t&, -4.5 -11. ,F4

169. Rigging rope when used to carry personnel must have a minimum safe factor of

A.5 B.10 C.12

170. If the manufacturer gives 5,000 pound variety of ror' working ratio, it is saying the load applied fore,neral' exceed pounds.

A. 10 B. 100 C. 1,000

C.'Pdlyethylenle ,, N.

A -:',17Olypropylene B. Polyester

171. The approximate safe working load of a 7/8" diametehlew fiber rope (3-strand polyester) is pounds. Select the closest answer.

A. 2,000 B. 2,940

C. 4,000 D. 5,000


Snatch ;blocks bibck

ire'rOpe bloc ConcreWblock

rmally used when it is necessary kc1changeya (*ton of the

ti

176. A forms a noose in the rope that:Sightenf%the load is lifted. It°', does not provide full 360° contact with thejload.

A. Double basket hitch B. Single vertical hitch

C. Single choker hitch D. Basket hitch

177. Iron hosting chains should be annealed every two7years to'it ieve hardening, but after annealing should,be deStroyed.

A. 1

B. 2 C. 4

172. A/an knot can be used for joining two rope; it will not slip and can be untied easily.

A. Half-Hitch

C. Noose B. Sheepshank

D. Square

173. When mobile hoists, cranes, or simila electrically energized lines or equip have to be

Insulat

.\ Equippe ith a irghtning rod

174. According to Construction Rigging anerafety are made with ground rollerSand areAcomrritOed for triedium duty service and high- ....

C. Anti-friction bearing sheaves D. Friction rollerbaArigs


A. Properly grounded B. Considered as energize

speed operations,

A. Precisron bearings 7,11.-„Roller bearing sheaves

181. The'contractor signs a written contract Or is instructed to begin work. Thais is

A. An offer B. An acceptance

C. Sufficient consideration D. A mirror image of Onsidera ton,

182. In the construction industry an offer is generally *Red fo expressed otherwise.

A. 30 days B. 60 days C. 90 days

178. CES Construction's workers compensation insurance premium is $30,800.00 per year. The company's annual payroll is $ 50,000.00, and the cost to implement a safety program is 2-1/2% of cove payroll. If the workers compensation premium can be reduced px1/3, is the cost to CES to fund the a safety program and the insurance emidra the safety program is adopted?

A. $3,750.00 B. $10,267.00

179. A Company's safety record for a r was a-.40110wc 25 lost workdays, office et loyee & operato‘worked112,800 hours, and craft employees wor ed 18 0 hour. Assuming.\2,000 man-hours in a work year, what wad lost .„ :e (incidence rate) per 100 employees?4

A. Lessthan 6 er 1 B. Beier 1655 emp ayees. C. Betve# 75 -1 -85per mployees.

ore t is t85 per 100employees.

czt owing is not an elemet:k9 xf a con

Negotiation Consid4ation cceptance

183. Which of the following is required to be in written t6!toe enforceable according to the Florida Statutes of Fraud?

A. A construction project to be completed in 11 months. B. A lease contract for 11 months. C. The purchase of $700.00 worth of equipment. D. The sale of 40 cubic yards of fill at $1.75 per cubic yard.


185. An action for a breach of a writtenoontiaet must years according to the Statute oftirnitations

Vt•",

A. 3 B. 4

e wifhin

1127

184. Which of the following is NOT required under Florida law for a contract?

A. A contract must be in written if it takes 14 months to accomplish. B. The sale of goods to a contractor costing $400.00 is re {iced to be in

writing. „

C. The contract for the sale of real property must beltiNtriting. ‘7D. Whenever a contractor guarantees to answer for th of another,

the contract must be in writing.

186.A subcontractor \ receive. did fina ttrayy from CES contractors, due =A to a 6-month term in jail.,: After his,reSease‘twas in an automobile accidentand t4dr:to go through red' ilitation for 14 months. He was informbd he would have , yeaf(sj from the date left the job to recover tiis:fi al draW,from CES_contractors.

2

187. A clause.to provia,, method of adjusting' for unintentionalchange is a Aclaus

X\COnstructive changes C F nal payMent cla B. PrOvisional payments D. CO.fitingenti4men -clause

,, 188. Nan provision protects the contractor by requiring the owner to pay . _ owner

the additional cost caused by unforeseen conditions. ,

A. Unseen site conditions. B. Unexpected site conditions. C. Default. D. Differing site conditions.

189. A contractor has his attorney draw up a contradt 7,which it then sighed by himself and the owner of a project to be construdt4,After the : project has been started, it is discovered that the contract contains-,,ambiguous language. The ambiguous language will be construed a-gainst

A. The owner. B. No one, work has already commenced. c. The party who drafted the contract. D. Everybody who signed the contract.

C. 5

31


190. When an owner contracts directly with several contractors to complete a construction project, the structure of the project is known as

A. A single contract system. B. linear construction. C. Multiple prime contracts D. Prime owner.

191. All but which of the following is an ad4 contract?

u.

A. Shorter overall project schedue B. Cost savings. C. Clear line of responsibili D. No Hen release needed.

192. An entire con-rAct inc I

A. Plawand speatcation*s 013.. DocuMents and tpecifica ton

lans and agreements ft'of the P-dye

193 An oWne,, requires That the contractor secure a ,,,,,,,„_,..,, „,.. will guaranteed the contractor will pert wo

-tcontract.

A. Pa jment and performance bond B. Bid bond C. Security bond D. Permit

194. A contractors is due final payment on a project

A. When the job is substantially complete B. When the owner accepts the job C. When the final inspection is approved by t einspec D. After the contract retainage holding period

195. A (an) is a hidden defect in an article sold.

A. Unwarranted defect C. Performance defect B. Latent defect D. Minor defect


196. CES Contractors signed a contract with a Florida corporation (owner) to construct an office building. There was a liquidated damage clause in the contract between the two companies. The liquidated damige clause is a part of all subcontract agreements used by the Constructidompany and its subcontractors. A major delay was forced uponlhe job tlfne of the subcontractors and because of this, the owner assessed liqulOted damages to the Construction Company. Which of the z idli wing lea true ,, statement concerning the situation?

A. The subcontractor causing the delaY .VA st pa:atfliquida damages Y se t assessed to the construction Shopany.

B. All subcontractors must equall'Aftere the -cpst ofrlicitudated damages. equally

C. The owner is responsibleI must t nd m share the burden D. The subcontractor nottiableAs the liquiWated damages.

197. All parties haytsigne4contrat . he earl ?ct or is liable for liquidated damages in eVmount Cit p00.0% per daylr each day after the required date for completion thaf the work is not substantially completed

d by t it f

,'e archrea The contract called fdr.the job to be tmple 'Oc on J _e,::1 1. The contractor vve,7s9 anted a six-day

tract tifile by the architect be use of -Wpilusual delay in of m e leis. TheNvork was completed ti June $I Uhat is the f liquiha cl damages that the cC1htractotis,liable'

5,00074,0 $5,500.*

is a defect, which is not obvidti$ rom aisual inspection.

A. Quantum meruit

C. HiddefiVefect B. Latent defects. D. Concealed defects.

199. In addition to claims based upon neglect or breach of warian theory of liability less commonly used is

A. Action based on inferior materials. B. Action based on fraud. C. Non-quality workmanship D. Neglect

200. The ways to eliminate the opportunity for a bid shoppindis/are

A. Bid depositories C. Bonds B. Bid listing of subcontractors D. All of the above


201. A subcontract has been signed by a contractor and a subcontractor for work being done on a residential project. In accordance with the subcontract terms, the contractor may terminate the subcontract and finish the subcontractor work by what ever method the co`rti ctor deems expedient provided the subcontractor fails within 7:;9,:a. s a eceipt of written notice to commence and continue correction? any •elvt or neglect. If the unpaid balance of the subcontract sun ceeds t expense of finishing the subcontractor worch excess shall aid to

We the subcontractor, but if such expens cee s:Stch unpaid .1:Dalancel the subcontractor shall pay the difference Wale con a o r Th bcontractor has repeatedly failed to carry odrthe work ,' acco witftthle subcontract terms. After folowin of the rect p?,1:5Cedures for notification of the subcontractor, th :subcontractor is terminated by the contractor, the contractor ha e Afiaished.,,another subcontractor at a cost of $4,, ,395AThere an unpaid balance of $3,980.00 (which includes $250:; pip in retainage) orfae subbOntractor. What is the amount of money that the original'subcon actor is contractually responsible to pay the cd 6ctori

C. $415.00 920.00

mbin ubcontractor dies beforeJhe plumbing of a residential

days onTfor this occurrence. "..t\

• 'tabcontractor A submits a bid for $1',600.00,for the remaining work but -,44,- , _.. . cannot start for three weeks. This wield resAina substantial completion of the project eighteen (1 1.;days after the original contract date requirement.

• Subcontractor B submits a bid for $1,950.00 for the fertlaining%rk. He can start the work in two weeks. This would rcesultin)ubstalitrat, completion of the project eleven (11) days after the origihakontra date requirement.

The contract for this project calls for liquidated arrwAt of $40.00 per day for each day after the required clatfor su Stantial completion.

The contractor has retained $475.00 from payments already made to the original plumbing contractor because he has a clause in his contract whereby he may deduct from retainage any costs above the original cost of the contract, caused by failure to complete the contract, and cannot collect any amount that goes over the retainage.

134, project can be rntshed. The contract anlount remaining oitthe:plumbing

-. contractwas $1:295.00. The architect will allow ar' %extensidn-of eight (8)


00

A. $500.00 B. $5,000.00

C. $8,050.00 D. Cannot tran4r grope s lien to bond

204. ing td4hwowner concerning the importance of ce oommencem

A but ermit splication. ildin

d B are\''correct. of thNbove.

p

205 tea is attached to the rec xernpt the owners property from

of Corymelicement" it will tens Med' by non-privity

A. Conditional Bond B.Transfer Bond

206. CES has filed a lien against the owner of a construction amount of $5,000.00. The owner has contacted transfer the lien from the property to a bo . To Select the closest answer. Assume a 12 rate.

rc4ect in `fie co

The least additional cost (above cost already in the job for plumbing) to the contractor for this remaining work will be . (C sider ONLY the information given above).

A. $165.00 B. $230.00 C. $265.00

203. Tom Smith agreed to build a ticket both for Bill Jones the finish carpenter at the n as not paid the monies owed him when can file a lien for

A. The full amount prop t d. B.The full amo lus in erest. C. Whatever is I'per aft6 D. None

one t se is p id.

35


A. 5 days B. 5 business days

208. The CSI - Masterformat divides the spet,ift- nical divisions.

A. 14 B. 15

209. The CSI - Masterformat divides\ divisions.

ipations to specific

A. 14. D. 17

207. With regard to a construction loan, with in after a lender makes a final determination that the lender will cease further advances pursuant to a loan, the lender shall serve written notice of that decisio'd the contractor and on any other leinor who has given th enderygitten notice.

210. nen estialating equipme t pro•uction, equipment Speeds will usually aVerage ercentof speed limit depending on rda.' ditions, interiactionsArdffic and length of haul.

4% B - 65 % 65 -

211. Which of the following is not a "Ne ork AnaiKsis" system%

A. CPM B. CPA

C. PET D. PERK

212. is/are used to represent any sequertop of priorities amcri' t activities which constitute a project.

A. An event

C. A legend B. Arrows

D. A network

213. An activity is represented in a Precedent Diag identified by an activity number.

A. Rectangular box

C. Arrows B. Circle

D. Triangle

214. The lines connecting the boxes on a CPM type flowchart are known as 7

A. Links B. Connectors C. Flow lines D. Paths


A. LAP B. LEAD

C. LAG

3. What is one of the first tasks that must be accomplis after the awarding of a contract?

A. Project schedules. B. Prepare field purchase orders C. Submit cash flow report. D. Process payroll.

D. P'sre cpdence

by th-etco tractor

215. When it is possible to start any activity independently, but not to complete it before another is completed causes an overlap known as

217. The project schedureshould15:0jointl repare wit _ a ? 0

A. Delivery schedule aterta';& equipment schedule B. Project superuatenden :

O'bcontractor schedule

N ,

218. he prdf4ct..schedula:,,,should-ba jointly prepared with'-a schedule.

qNs C. Material &aquipm D. Labor

219 All of tfowing5are legitimateAcal pat , VA ,

V A A b t i v i t y duration necessary to carry out eac . .-;174, B. Pri5ject schedules. C. A pre-determined contract completion date. D. Defined activities and restraints.

220. The first step in the scheduling process is to

A. Determine contracts completion date. B. Determine projects activities and restraints. C. Develop activity duration. D. Figured total manpower levels

221. A short term schedule is a detailed explanation 011ie next fotIr weeks of construction activities. The should take the prilmary rorejn developing this schedule.

A. Project manager C. Project engineer B. Project superintendent D. Subcontractor

37


222. A schedule is a detailed explanation of the next fd weeks of construction activity.

A. Temporary B. Short term

223. All of the following may be requests arch by subcontractor except ?

,

A. Requests for compenSation foi -vork alread in th -et scope of work. c, B. Requests for compensa% kr for k misse

i,,, n a bi

C. Requests for cO'MpnsatiottIor wd‘?'"V already in their scope of work. D. Requests for extra work beyond the cope of the contract.

,,,;.. 224. CES contractors have nOtired in tititg, A-I Aluminum Company, the ,, ,,,

the con t . - .,

subcontractor on -t rojeCt,O, defective wotmanship on the new xeiling panels. The subconty c4r has ignored the fiagfcation. CES N

ntractorS,m,N,

co paired r.- ,9 e ceilin panel ten days lateE. can recover t,,

,,,,,-.: .4-N, .:,..,,. a

t ide cost by iss uing against the subcontractor. ,

. Change orde- C. Back‘charge

. Letter2 -a intent' Purchase orde

225. -:subcontractor is required to haves,Perforrriance Bohd on the project for CESContractors. must be attached to thsioond to make a binding.

B. A power of Attorney. D. A subC5Eitractor agreement:

226. What document should not be submitted to the contractOV'or apprOva before the subcontractor commences work?

C. Sub D. Partial

s‘Tx 114

A. Subcontractor agreement B. Copy of supplier invoice

C. insuratibe certf D. Performa

227. It is the responsibility of the to notify a vent default of the subcontractor agreement.

A. Contractor B. Owner

C. Project manager D. Project superintendent

A. An insurance certificate. C. A qttiCK:clair4 deed


228. The expediting and processing of shop drawings is properly the responsibility of the

A. Contractor B. Project manager

C. Owner D. Architect

229. The person responsible for the day to day project drrec ion sucas supervising trades and subcontractors is

A. Project superintendent C. thitect B. Project manager D. P

*itte roject orgaPittr: ,

230. The procedure under whiqprogreObillings'aT acdeIpTrated in relation to cost incurred by assigning *her va es to . pons of a- contractthat will ,... portion s,,s. be completed in t rly sta®4 as

A. Front enclOading B. Contract ovary; un

d tightening balanced loading

231. A contradtot-has paida telep e bill for $98.65. T rnal entry would

A. De a liabili accou4for $98.65 kik 'v.-.: =:* , it

B. Credi an operaf(pg expense accountm$98. C. Cre!fitlliabilil'account for $9 65 11-,Crediran-asset account for $9 -,T..,. q.v

232. An employer has 4 employees during the,first qu arter ofthe year and their total earnings for the quarter were:

• Jim $9,200.00 • Tom $6,500.00 • Bill $4,500.00 • Marshall $22,000.00

The employer has a Florida Unemployment t' W. 0010. atis the3 .

amount of unemployment compensation tax to th tate with his quarterly return? Assume the return is filed time nd no‘ig:paltie or interest are due. The State of Florida uses federalt)TA gitid6lines for wages base limits.

A. $43.00

B. $25.00 C. $62.00

CY.-$ ,125.00

39


233. Tom and AL form a partnership to build a project. Each partner invested $50,000.00 in capital. Tom and Al decided to take in a limited partner to raise additional capital needed for the project. The limite artner contributed $100,000.00 to the business. The project con ed for 8 months when the limited partner discovered the buSi ess i Losing money. In order to protect his investment, the limited partn cam Aive in the business by giving advice and directing so limited partner help was too late to savet the months the business was forced to olds partnership was showing a negative 05 preceding information is the only ctor to could collect from t k e limit partner.

A. $ -0- B $10 000.0 _.30-000.00-t D. $50,000.00

A 234. An accident,docurre -arta contractors joei'site resulting in the following .t.iIi.k% 'we..1, .- ,.:.-)

'site

damage:. A forldift ownedmy the ?tractor was damaged, with repair ., AV' 4.. ,,. costs totaling $2 M0.00.'' was no taX'tered by vehicular insurance. Constfildflon mate!tals not '0 plate were destroyedwith replacement - ..,,, A, ,..-,:;, cost totaling $5, 500::00. A temporary job site structurel p lace was destroyed

'-''F›. '''',%. 'io, . . .MTh e,replacement cost was based ark, mater a1 ..,,, ,..,, ,„.

markup of

$4 .0%00, labOrcost of $1,500.00 and .1 13% markup for ead (the estirc te ase&piithese figures was gpOoved i3j`:the insure \de comp Y The d'antractor has a $1.00.00eductibt 11 risk ers risk nsuranc plicy that has typical do,' ragew muc should e 2\ ---z. coptractor recover from the insura e

Nt compawfor the ses described

above?

A. $7,650.00 B. $11,680.00 C. $11 0.00 D. $13,057.00

235. The job cost ledger for a job currently in progress show the followyf' information for the completed actual excavation work.

f the eA ations. at thettm. of 12 closing

ortAir consideled, thesreditor

Supervisor $3,050.00 General Labor $4,260.00 Equip Rental $4,500.00

Heavy Equipmertoperato Dewatering Fuel

3,200.0 P;800.00:::

5 per cubic Soil disposal 12,300 cubic yards at an estimate yard.

The contractor pre-arranged the sale of the material fora net profit of $4,000.00

40


236. Which of the following forms may e used as. a subStitte forfi , e OSHA form # 301?

A. OSHA form # 20Ik B. State workeE,corrT

C. Saftsafety erm # 101 D. Ncithilit - there is no substitute

Assume the amount of material actually excavated was the same as that estimated. Based only on the information given above, theInet cost of the excavation was

A. 0.15 per cubic yard more than estimated. B. 0.75 per cubic yard more than estimated. C. 0.25 per cubic yard more than estimated. D. Equal to the actual cost estimated.

237. Richard, ,is a stock stoack holderi d prest 61711 of a construction company that is a cloSkborporattOn. He s 280 Q,00 shares of thetotal 600,000 optstanWsharei'tj stock' e corporation. The* ikonly one class of ..,, -.... A stock. The contracting 'S compart ad a net profit (earh,,,,,k urplus) of $65,000.00 .. Wet all taxes, and expenses for the ;*efiscal escding June

-4 - , ,-..4: ,,, --,- the Net assets of the cOi-poration as of 30kh, amoup ecl to .:. . " ',,,

$375,000,,00 Whatts the maximum divIdepd that Richard aa ect to receiveIrqm the business for his aNi. ersTirp.,,-ipterest trtt e corporation for thefiscal ye

,, -,-

June r en

' ',N.

. yV di

le , .q4k-Th

ading J 30th S ct thlosest an vier. ..„. e c,:‘....,.\., -,

A. $18,000.00 C. $;,5,000 B. $30,300.00 D. $20,000.0 . _

N, 14-t 238. ,, A contractor decides to take out a loan with amount of $1,i„,-;0\00.00'±:,

The bank he deals with will give him the loan at 15.5% simple interest :, , A ,,

payable on the first of each month and according to the following terms:

• Interest only payments during the loan period o ear. • All principle and accrued interest payablCon the '601 monthl

payment. • 3% is discounted from the loan proceeds forlhe origiii,,afron fee

The annual percentage rate is %.

A. 15% B. 15.46% C. 15.98% ‘:;16.55%

41


239. The final payment on the above loan is

A. $1,500.00 B. $138,500.00 C. $145,000.00

240. A contractor on a Florida State project receives paT t frorwastate agency on Monday. Without reasonable cause, the .actor ed to pay a $4,235.00 bill due a subcontractor until 17%/s after date

states t a tor t pay tactor ,irc suppte‘within contractor received payment from the ,,bte. rcl

l a Pro ay t.-:a

tha contrac mus subcon : ,,,,

7 working days after receipt of stakayArit A pen is imp,:d of one-half of 1 percent of the amott6tlue per fro i e timeallotted for payment. What is the arnaggt of statutory pen'alty that'could be imposed against the contractor for hislailure to p omptlAay the subcontractor'?

'W' D. $360.00

241. Ted, Wemployee of CES receivesNe transportation. This free transptitkon is a vble'Denefit worth $80.00 per ropth. Since Ted is paid onVmonthly basis, the $80.00 should be

ed to , 's net pay. B. Slt Lactedi Ted's net pay. C. Alla o Te Agross earnings D. Subtr=acted from Ted's gross'eat:Rings.

242. AINdgment in favor of a contractorw,275.0,4;tconstroc tion lien claim waS -iVvarded to the contractor on DecVber 1kstp99. There was no arbitration clause in the contract betweenthe contractor and the owner and 12% interest rate was agreed to in the'ZoOgtract that would ap•ly to judgments for construction liens. The claimVlien was rendere January 1st, 2000. If the judgment had NOT been paid ii\pf that what is the amount of interest that would have been due o ..

$11,275.00 lien as of October 31st, 2000?. Assume a 12% per annum prevailing interest rate.

A. Less than $1,000.00 B. Between $1,000.00 - $1,300.00 C. Between $1,300.00 - $1,500.00 D. More than $1,500.00

A. $150.00


243. Which of the following is NOT a characteristic of a joint venture?

A. Joint ventures serve to combine the resources, assets art skills of the participating companies.

B. Each participant of a joint venture must share ecteli in an rofit or loss from the venture.

C. A joint venture is like a partnership except ibat a join visually limited to a single project.

D. Out of state firms can enter into a jOffibtenA a state certified contractor.

244. Which of the following is nova factor, used by be IRS107determine whether or not a person is arremployee?

A. Control Control B. Continuing rotations

.,,,., 245. According to the Contractors Manuar' the amount of revenue expected to

..:., 4*, .,,,, _ be realized,:,,.on uncompleted e:portion of revenue

,E,-, ,-,-, , contracts consisting of th w,,,_ '4ontr

4 relating to work to be performea>on contracts, includingm contractual

agreements

-4ree

:,,, -nents On

.%,7,,, which work which has not begun is kn n ... as 7

ccued IncOrhe C. BictS'ecurity ,,,,,:„.. B. Back ogle scala ion Inc°

246. Ifs COrporation meets the requiremento :opeci re. by theJRS,and elects to be taxed as a partnership rather than a'edrporatta,Ahe company is referred to as a/an

A. Joint venture B. "S" Corporation C. Employee stock Ownership Corporation D. Limited Partnership

247. A company's federal employment taxes were aid orizne for one week late for August, and paid on time fo ten -it:12r. IRS 1 for the quarter ending September 30th, must Ipo , :tied no fate han

A. October 10th C. November 10th B. October 31st D. November 30th

43


30 degrees with vertical.

A. 2,000 B.

248. All but which of the following activities are considered co, struction jobs as that term is used in the Worker Compensation StItpte?

A. Well drilling on lands containing existing build B. Land clearing for appearances purpos,Aonly.

, C. Land clearing for construction purposes D. Landscaping for existing building

249. A multiple leg sling with a ratedoppacitrof 200 ,0 _nds WilLfiave a VE*.

reduced capacity of ,. pourt0't,

when the sling)Ogs are at an angle of

D. 518

250. A stairway or ie'dder 'gig be proVid at all personnel points of access where there is 'a break i -elevations ot or mor - and no runway or to, rampOrhoist is provideT,,,


1. D 1-12 2. B 1-15 3. A 1-13 4. D 1-14 5. C 1-14 6. D 1-15 7. D 1-13 8. C 1-14 9. D 1-16

51. D 3-123 52. C 3-138 53. B 3-93 54. B 3-101 55. C 3-89 56. A 3-88 57. C 3-125 58. A 3-90 59. D 8-6

10. C 1-23 60. C 3-110

TOP 250 DAY ONE BUSINESS & FINANCE QUESTIONS From ABCI Contractors Manual - 2004 Edition & OSHA 1926

11. B 1-15 61. D 3-88 12. B 1-23 62. D 3-92 13. B 1-24 63. C 3-91 14. D 1-34 64. C 3-99 15. B 1-33 65. k-34,01 16.A 1-27 66. B 3 102 17. C 2-58 67. D 177-Cirk 18. D 2-58 6a:A 18 CirEA 19. A 2-10 69 C 27 CirE 20. B 70..0 27 CirE

21.p 2-66 71. D 14 CirE 24 -59 B 32 CirE

118 D 3 Cirg 24. :17 .25. C1711.9t-). CirE *

B 2=R CirE 11, 27. D 2-13\ 77. - D, 31 CirE

N28. C 2-53 78. D 7 CirE 79. C 27 CirE

30:G 3-25 80. B 7 CirE

31. B 3-31- 81. D 4-10 32. C 3-50 82. D 4-10 33. C 3-63 83. C 8-29 34. B 3-13 84. D 4-11 35. C 3-19 85. B 4-10 36. B 3-47 86. C 4-14 37. D 3-37 87. A 4-15 38. C 3-49 88. D 4-17 39. D 3-27 89. D 4-20 40. C 3-34 90. D 4-21

41. B 3-28 91. C 4-22 42. D 3-37 92. D 4-22 43. D 3-40 93. B 5-13 44. B 3-70 94. C 5-13 45. B 3-84 95. B 5-13 46. D 3-88 96. B 5-13 47. A 3-86 97. A 5-13 48. D 3-84 98. A 5-18 49. D 3-89 99. D 5-18 50. D 3-101 100. B 5-29

101. D 5-31 102. C 5-29 103. C 5-31 104. D 5-30 105. C 5-38 106. C 5-35 107. C 5-51 108.D 109.0 5-07 110. D 5-57

11 b 5-57 1120A-60 113.*,5-62 114. C 5-62 V. 5. D

1;tts6. C 5-6 litg o 5-65 11'87.14. -50 ' 114.V. -20 120. (7.45

421. C 5-58 22. C 6-56

123. B 6-92 124. C 6-95 125. C 6-10 126.B 6-* 127.,C

124.--.1176-34 130.4,.-\- 6-1,05

131. D 6f1A1) 132. C 6-86Z„\ 133. D 6-90 134.A 6-88 135. B 6-86 135. C 6-47 137. D 6-9 138. D 6-7 139. D 6-11 140. C 6-17

141. C 6-94 142.A 7-8 143. C 7-8 144. C 7-7 145. D 7-19 146. B 7-22 147. B 7-27 148. B 7-26 149. C 7-29 150. C 7-35

74-\::B CirE 21

151.A 7-34 ,„„, 152. C .20(b)(3)% 152. C 7-37 1544108 155. 156. BA§OTeg(2) 457. D .54(5y

D .59(2 ,:154J2 .105 % 160 C .200(c)

161.-G, .50(b)(6) 162.c-7:2*b)(7) 163. A .259(8)

4. B .451(c)(1) 185\B Sub L App. 166:12. .1051(a) 167. B 7-56 168. D 7-57 169. B 7-59 170. C 7-59

D 212. D 213. A 214. B 215. C 216. A 217. C 218. C 219. C 220. B

201. C Math 202. B Math 203. D 9-10 204. C 9-76

5. D 9-53 C 9-45

9-92 20&V-40-9 209.tifil 9-9 210. B10-30

10-67 10-70 10-71 10-71 10-72 10-75 10-75 10-75 10-76 10-75

171. 8 6 172 D'ir6

(A 73. D 7' 474. B 7-8

A 7-87 7-92

221. B 10-77 222. B 10-76 223. B 10-77 224. C 10-79 225. B 10-80 26. B 10-80

. C 10-81 B 10-82

•229. A 10-86 230. A 10-91

8-8 231. A 3-39, 232. B C irE

183:,C 8-9 233. C \184. B 8-9 B 4-10 *: 185. C 8-10 Math 186. B 8-10 = 23 -6 187.A 8-13 188. D 8-13 189. C.8-15 190. al'Z-.,16

s:k

D a:19 D 82f8=22

140\8-23 19575-8-29 196.A8=28 197. D 198. B 8=241 199. B 8-30 200. D 8-8

21-N 3-56 242Ef „Math 243. , 61'i,13 244. EY> 2-8

B 3-121 246. B 1-14 247. C 2 CirE 248. C 6-8 249. C 7-97 250. C .1051(1)(a)

NOTE: Effective interest = $ Interest divided by loan PROCEEDS (loan minus points) 12/04

45


business and finance. (part i) seminar handout 250 q & a c

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