AIC - Management Flashcards

1
Q

Which of the following is a fundamental

element of a contract?

A

mutual acceptance

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2
Q

Which of the following contract types is
generally considered to have the most risk
for the contractor?

A

lump sum

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3
Q

Which of the following contract types is best
used if the scope is well defined but not the
quantities of material?

A

unit price

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4
Q

In which delivery method is the construction

administrator most like a consultant?

A

CM agency

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5
Q

Which statement is true about the designbuild
delivery method from the owner’s
perspective?

A

There is a single source of fault for

building system failures.

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6
Q

Which delivery method has the most risk for

the contractor?

A

design-build

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7
Q

Which of the following is a major difference

between a CM agency and a CM at risk?

A

caps the construction costs the owner is

required to pay

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8
Q

Under which legal structure are the least
total taxes paid for the goods and services
provided by the company?

A

sole proprietorship

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9
Q

In the construction industry, which legal entity

is often a temporary arrangement?

A

joint venture

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10
Q

Which is an advantage of forming a

corporation?

A

Shareholders have reduced personal

liability.

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11
Q

Current Ratio

A

Current Assets /

Current Liabilities

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12
Q

Quick Ratio

A

(Cash and Equivalents + Accounts Receivable) /

Current Liabilities

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13
Q

Days Receivable

Days receivable indicates the average number
of days a company takes to receive payment.

A

365/ (Revenue/Trade Receivables)

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14
Q

Days Payable

Days payable indicates the average number
of days a company takes to make payments

A

365 / (Direct Cost/Accounts Payable)

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15
Q

Working Capital

Working capital measures available funds for
investment in operations to generate future
revenue and profit.

A

Current Assets – Current Liabilities

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16
Q

Fixed/Worth

Fixed/worth is the ratio that measures the
amount in which the owner’s equity is invested in
fixed assets

A

Net Fixed Assets /

Tangible Net Worth

17
Q

Debt/Worth

Debt/worth is the ratio of capital contributed
by creditors and the capital contributed by the
owners.

A

Total Liabilities /

Tangible Net Worth

18
Q

Return on Investment (ROI)

ROI measures the effectiveness and rate of
return on invested capital.

A

Net Profit before Taxes /Tangible Net Worth × 100

19
Q

Return on Assets (ROA)

ROA measures the effectiveness of asset
utilization.

A

Net Profit before Taxes / Total Assets × 100

20
Q

A company has $10,000 in cash, $20,000 in
equipment, and $20,000 in accounts
payable. The tax rate is 13%. What is the
current ratio?

A

$10,000/$20,000 = 0.5

21
Q

What is the return on assets assuming a net
profit before tax of $15,000 and $30,000
total assets?

A

$15,000 / $30,000 x 100 = 50%

22
Q

A company has $50,000 in equipment,
$20,000 in cash, and $30,000 in accounts
payable. How much working capital does it
have?

A

$20,000 - $30,000 = ($10,000)

23
Q

Which chart would be the most appropriate
to show the percentage of fall protection
safety violations compared to all safety
violations?

A

pie chart

24
Q

Which of the following is a management
system used to improve customer
satisfaction?

A

All the above - TQM (Total Quality Management)/ Six Sigma/ Lean

25
Q

Which management system was developed

based on Toyota’s Production System?

A

Lean

26
Q

Which of the following should a construction
professional provide when delivering
services to his or her clients based on the AIC
code of ethics?

A

management excellence