Business & Law Flashcards
1
Q
Holes drilled into floor joists for piping shall not exceed 1/3 of the depth of the joist and:
A
not be closer than 2” to the top or bottom of the joist
2
Q
True or false: Water wells should be located on the opposite side or uphill side of the house from the drainfield
A
True
3
Q
The builder or contractor shall deliver to the customer, when construction is involved:
Associated Answers 1 specifications for the job 2 all necessary permits 3 both plans and specifications 4 fully executed copies of all agreements, including plans and specifications
A
4 fully executed copies of all agreements, including plans and specifications
4
Q
The builder is responsible for faulty workmanship for a period of _______. Starting from the date of purchase, completion or occupancy which ever occurs last.
A
18 months
5
Q
3) Which is not a requirement to obtain a builder’s license?
Associated Answers
1 taking a builder’s course and a one year apprenticeship
2 taking and passing the residential builder’s examination
3 paying the required license fee
4 completion of 60 hrs. of required study
A
1 taking a builder’s course and a one year apprenticeship
6
Q
A proper notification of change of address must be made within:
A
30 days
7
Q
What is the first step the Department will take to resolve a complaint between a buyer and builder?
Associated Answers
1 file a cease and desist order against the builder
2 file a summary suspension of the builder’s license
3 hold an informal conference
4 hold a contested case hearing
A
3 hold an informal conference
8
Q
At what point after a completed contract will the Department not investigate a complaint?
Associated Answers
A
18 months after completion, occupancy, or purchase, whichever occurs later
9
Q
True or False: ) A license can be revoked without a hearing:
A
True
10
Q
A father is the only qualified builder in a partnership he has with his son. The father dies. In order for the son to continue with the business, the son must:
Associated Answers
A
3 complete the license application procedure, including taking and passing the exam
11
Q
If the license of the qualified officer, partner, trustee, director, officer, member, or person exercising control of the corporation, partnership, or other association is revoked, or denied, the license of the corporation, partnership or other association shall:
Associated Answers
A
be suspended
12
Q
The phrase “good moral character” typically means:
A
Person is honest and fair
13
Q
An applicant operating as a corporation must submit which of the following to the Department?
Associated Answers
1 copy of the articles of incorporation
2 certified copy of sales tax license number
3 names and addresses of corporation board members
4 all of the above
A
All of the above
14
Q
If, as a licensed builder, you file for bankruptcy, you:
Associated Answers
A
are in violation of the Code and may be subject to any one of the several penalties
15
Q
What is a change in specifications prior to bidding called?
A
Change in specifications
16
Q
A licensee found guilty of one Article 6 violation may be:
Associated Answers
1 suspended, revoked, censured, or placed on probation
2 suspended, revoked, censured, placed on probation, and/or fined
3 suspended or reprimanded by the Labor Bureau
4 suspended, or placed on probation
A
2 suspended, revoked, censured, placed on probation, and/or fined
17
Q
15) A person who has had a limitation placed on a license may petition the Department, in writing, for a review of the decision to place the limitation. The licensee has how many days to file this petition? Associated Answers 1 5 days 2 15 days 3 30 days 4 60 days
A
3 30 days
18
Q
According to the Occupational Code, the following is not a residential builder:
Associated Answers
1 one who demolishes houses
2 one who works for an hourly wage for his labor in building a house
3 one who assembles prefabricated housing
4 one who provides plans, labor and materials for the building of a house
A
2 one who works for an hourly wage for his labor in building a house
19
Q
8) The board member who has participated in an investigation on a complaint filed with the Department, or who has attended an informal conference, \_\_\_\_\_\_\_ participate in making the final decision on that complaint. Associated Answers 1 must 2 must not 3 may arbitrate to 4 may be appointed to
A
2 must not
20
Q
A residential builder or maintenance and alteration contractors license is not required if:
Associated Answers
1 you contract to build a house as an electrician
2 you build homes part time
3 you are an officer of a court acting within the terms of the officer’s office
4 you work for a non-profit organization
A
3 you are an officer of a court acting within the terms of the officer’s office
21
Q
The law regulating licensing of the building trades is known as: Associated Answers 1 Occupational Code of 1980 2 Public Act 299 of 1980 3 Michigan Builders License Law 4 both A and B
A
4 both A and B
22
Q
23) When a builder or contractor wants to advertise in the media, he must:
Associated Answers
1 furnish his license number before any advertising begins
2 furnish his license name and address
3 both a and b
4 neither, if he’s just in town for a while
A
3 both a and b
23
Q
26) What reason may the Department use for the denial of an application for a license? Associated Answers 1 non-issuance of a surety bond 2 a notice of furnishing being issued 3 good and sufficient cause 4 not having insurance coverage
A
3 good and sufficient cause
24
Q
7) Failure to act on a complaint that construction is structurally/materially deficient is:
Associated Answers
1 punishable by fine or imprisonment
2 cause for federal involvement
3 is always the fault of the subcontractors
4 is not a problem if the complaint is 60 days old
A
1 punishable by fine or imprisonment
25
Who is entrusted to enforce the licensing act requirements in the State of Michigan and who may prosecute?
Associated Answers
1 Attorney General enforces, the Department prosecutes
2 Department enforces, Attorney General prosecutes
3 the Department (BOPR)
4 the Judge Advocate General
2 Department enforces, Attorney General prosecutes
26
When a salesperson terminates employment, what must the builder do?
Associated Answers
1 the builder must wait for a state requisition
2 the builder must wait for a written request by the salesperson
3 the builder must return the salesperson's license within 5 days by certified mail
4 the builder must wait for the salesperson's relinquishment of the sales card
3 the builder must return the salesperson's license within 5 days by certified mail
27
) A commission can be paid to you for the sale of goods and services of a builder provided:
Associated Answers
1 it is occasional and supplemental income
2 you are related to a licensee
3 you are employed by the provider of the stated goods and services and you hold a salesperson license
4 you hold a real estate license
3 you are employed by the provider of the stated goods and services and you hold a salesperson license
28
If the company's license is revoked, the salesperson's license:
Associated Answers
1 is extended for six months or until the salesperson finds a new employment
2 is suspended
3 remains in effect, if the salesperson was not involved in any wrong doing
4 automatically transferred to the state
2 is suspended
29
) An unlicensed builder who has the homeowner pull all building permits for the builder to construct a residential building over $599:
Associated Answers
1 is absolved from all liability
2 is legally circumventing the law
3 is in violation of the Department laws
4 is in violation of the Construction Lien Act
3 is in violation of the Department laws
30
```
6) Which of the following is exempt from being licensed?
Associated Answers
1 maintenance and alteration contractor
2 residential builder
3 garage builder
4 approved US Government official
```
4 approved US Government official
31
An applicant shall not be refused a license without:
Associated Answers
1 first obtaining an attorney
2 being deemed to have bad moral character
3 having an opportunity for a hearing before the Department
4 a valid driver's license
3 having an opportunity for a hearing before the Department
32
39) The Residential Builders license is only issued by the:
Associated Answers
1 Michigan Department of Labor
2 local building inspectors
3 Department of Licensing and Regulatory Affairs
4 Governor's Office
3 Department of Licensing and Regulatory Affairs
33
```
Following a complaint, the Attorney General's Office may order a builder to stop all work. Such a demand is known as:
Associated Answers
1 a liability order
2 a cease & desist order
3 a revocation
4 a suspension
```
2 a cease & desist order
34
```
Commission" means:
Associated Answers
1 a "board" other than an agency
2 an agency other than a board
3 the same as "agency"
4 the same as "board"
```
2 an agency other than a board
35
In the Occupational Code, "Department" means:
Associated Answers
1 Department of Labor
2 Department of Attorney General
3 Department of Licensing and Regulatory Affairs "LARA"
4 Department of H.U.D.
3 Department of Licensing and Regulatory Affairs "LARA"
36
Who decides what penalty will be imposed against a residential builder who violates the occupational code?
Associated Answers
1 Builder's Board
2 the Director of the Department, if the Board fails to take action within 60 days
3 Civil Liberties Union
4 both A and B
4 both A and B
37
If a residential builder's license is suspended:
Associated Answers
1 the sales people remain licensed for 30 days or until they find another builder
2 the builder's salespersons' licenses are also suspended
3 the builder's salespersons are responsible for returning their license
4 none of the above
2 the builder's salespersons' licenses are also suspended
38
```
Who submits a salesperson's license application?
Associated Answers
1 the builder
2 the salesperson
3 the department
4 the testing company
```
1 the builder
39
xpiration date of a residential builders license shall be:
Associated Answers
1 annually on their application date
2 every year on the anniversary of their license
3 May 31
4 June 1
3 May 31
40
The members of the board are appointed by the:
Associated Answers
1 commission
2 Governor, with the advice and consent of the senate
3 legislature
4 senate with the approval of the Governor
2 Governor, with the advice and consent of the senate
41
Which of the following is a violation of the articles regulating the occupation?
Associated Answers
1 practicing fraud or deceit in obtaining a license
2 practicing fraud, deceit or dishonesty in practicing an occupation
3 violating a rule of conduct of an occupation
4 all of the above
4 all of the above
42
```
Which of the following could be a penalty for violating an article regulating an occupation?
Associated Answers
1 placement of a limitation on a license
2 suspension of a license
3 revocation of a license
4 all of the above
```
4 all of the above
43
Upon the completion of the contract between the builder and the homeowner, what is delivered?
Associated Answers
1 building agreement only
2 specifications for construction only
3 a copy of all instruments executed by the principals
4 his new furniture
3 a copy of all instruments executed by the principals
44
An alternate form of testing must be provided for:
Associated Answers
1 a person with a physical handicap
2 a person with a mental handicap
3 request for an oral exam after failing the exam
4 all of the above
4 all of the above
45
All records kept in the office of the Department shall be:
Associated Answers
1 open to the public
2 closed to the public
3 closed to the public, unless opened by court order
4 open only by federal intervention
1 open to the public
46
A builder:
Associated Answers
1 need not display the license of his salesperson
2 must display the licenses of his salespersons in his place of business
3 need not have a licensed salesperson sell his goods and services
4 must display his salespersons licenses on each remodel job
2 must display the licenses of his salespersons in his place of business
47
```
A residential contractor and a commercial contractor have the same regulatory commission for new construction of:
Associated Answers
1 four-story apartment buildings
2 small strip malls
3 jewelry store
4 all of the above
```
all of the above
48
A complaint has been filed against a builder. In order for the dispute to be settled informally:
Associated Answers
1 a fine will be imposed
2 agreement must be reached between both parties and the Bureau
3 the builder must agree to a suspension of his license
4 the Board must take civil action in addition to the resolution of the complaint
2 agreement must be reached between both parties and the Bureau
49
A valid reason for a general contractor to withhold payment from a licensed subcontractor would be:
Associated Answers
1 a draw made by subcontractor, which is not processed by the contractor
2 an improperly placed purchase order by the contractor
3 unacceptable work by the subcontractor
4 unacceptable work by the contractor
3 unacceptable work by the subcontractor
50
If a builder decides to sell his business:
Associated Answers
1 he can sell his business only to a person who is already operating as a licensed builder
2 the business cannot be sold: its assets must be liquidated and it must be dissolved
3 the new owner must be licensed, or take the test and become licensed before he could operate the company
4 he can sell both his license and business to another person
3 the new owner must be licensed, or take the test and become licensed before he could operate the company
51
In the Occupational Code, the word "Board" means:
Associated Answers
1 Board of Licensing and Regulation
2 Residential Builders and Maintenance and Alteration Contractors Board
3 Board of Review
4 Board of Examiners
2 Residential Builders and Maintenance and Alteration Contractors Board
52
The "Respondent" in a complaint proceeding is:
Associated Answers
1 the person who files a complaint
2 the person against whom the complaint is filed
3 the person who investigates the complaint
4 the person who, in writing, makes the complaint known to the public
2 the person against whom the complaint is filed
53
If the builder disputes the material facts of the complaint against him, the Board may:
Associated Answers
1 ask for a report from the building official in the area of the complaint
2 make an inspection to determine the facts
3 ask the complainant to furnish more information
4 any of the above
4 any of the above
54
```
You can file a complaint against a builder or contractor if you are:
Associated Answers
1 the local building official
2 a dissatisfied customer
3 the Attorney General
4 any of the above
```
any of the above
55
Which of the following cannot be done without a licensed contractor?
Associated Answers
1 building a house for your own use
2 repairs to a house by the owner
3 dividing a house into apartments by the owner
4 building a structure that will have both commercial and residential use
4 building a structure that will have both commercial and residential use
56
An M & A contractor licensed for carpentry would like to install a roof. The contractor:
Associated Answers
1 must write the word "roofing" on the license
2 must take and pass the M & A contractor test for roofing
3 must use employees who are licensed roofers
4 can proceed. The existing license will also be good for roofing
2 must take and pass the M & A contractor test for roofing
57
In the Occupational Code, "place" means:
Associated Answers
1 the place at which construction takes place
2 the physical location out of which one does business
3 a post office box
4 a telephone answering service
2 the physical location out of which one does business
58
A contempt of court citation can be issued against a builder who is the object of a complaint:
Associated Answers
1 in lieu of an administrative hearing
2 prior to a formal investigation of a complaint
3 as a penalty for violation of the code
4 for willful refusal to cooperate in the investigation of a complaint
4 for willful refusal to cooperate in the investigation of a complaint
59
Each member of a partnership or corporation must have a Builders License.
Associated Answers
1 True
2 False
2 False
60
If a licensed builder hires a salesman to work part time on a salary, a salesman's license is not required.
Associated Answers
1 True
2 False
2 False
61
```
Who sets the standards of conduct, performance, qualifications and fitness of applicants, conducts investigations, and settles complaints?
Associated Answers
1 the Committee
2 the Board
3 the Senate
4 the Attorney General
```
2 the Board
62
```
Failure to appear for an informal conference may result in:
Associated Answers
1 suspension of a license
2 denial of a license
3 revocation of a license
4 any one of the above
```
4 any one of the above
63
If a company is organized as a Corporation, Limited Liability Company or a Partnership, must both the company and the qualifying officer puchase a license?
Associated Answers
1 Yes
2 No
1 Yes
64
```
The Department's request for a current and accurate financial statement must be:
Associated Answers
1 sent by registered mail
2 served by the courts
3 signed by the Attorney General
4 a written demand
```
4 a written demand
65
Which of the following are violations of the Occupational Code?
Associated Answers
1 abandonment (without legal excuse) of a contract, construction project, or operation engaged in or undertaken by the licensee
2 diversion of funds or property received for completion of a specific construction project or operation for any other construction project or operation, obligation, or purpose
3 failure to account for or remit money coming into the person's possession which belongs to others
4 all of the above
4 all of the above
66
```
It is a violation of the Occupational Code, in a maintenance and alteration contract, for the licensee to fail to furnish, to the lender, the purchaser's signed completion certificate executed upon completion of the work to be performed under the contract:
Associated Answers
1 yes
2 no
3 Under Federal Law
4 not in township jurisdiction
```
1 yes
67
When do you, as a sole proprietor, have to file and pay into the unemployment fund?
Associated Answers
1 when you have three or more employees
2 when you have one employee who works less than 35 hours per week
3 when gross wages paid out exceed $1,000.00
4 payment into the unemployment fund is not required by law
3 when gross wages paid out exceed $1,000.00
68
If a Maintenance and Alteration contractor, licensed as a carpenter, wants to add to his trade, such as roofing, must he take the roofing exam?
Associated Answers
1 yes
2 not if it's less than 50% of his business
3 no, he can do roofing with his existing license
4 no, he must take the residential builders examination
1 yes
69
Members of the Maintenance and Alteration Contractor's Board are:
Associated Answers
1 voted for by the general public
2 appointed by the Governor with the consent of the senate
3 appointed by the Board
4 appointed by the Governor with the consent of the House of Representatives
2 appointed by the Governor with the consent of the senate
70
```
A license must be renewed on or before:
Associated Answers
1 January 31
2 December 31
3 May 31
4 June 3
```
3 May 31
71
```
Which of the following are not required to have a Residential Builder's license because they are licensed under a separate law?
Associated Answers
1 an electrical contractor
2 H.A.V. contractor
3 a plumbing contractor
4 all of the above
```
4 all of the above
72
A person who, for compensation of $600.00 or more, undertakes with another the repair, alteration of, addition to, subtraction from, improvement of, moving of, or wrecking of a residential building must be licensed as a:
Associated Answers
1 Commercial Builder
2 Residential Builder or Maintenance and Alteration Contractor
3 Electrical Contractor
4 Handyman
2 Residential Builder or Maintenance and Alteration Contractor
73
An employee or agent of a licensed residential builder or maintenance and alteration contractor who, for compensation, sells, negotiates, solicits for, furnishes or attempts to furnish the goods and services of a residential builder or maintenance and alteration contractor must:
Associated Answers
1 be honest and a good salesperson
2 be licensed as a residential builder
3 be licensed as a salesperson
4 be licensed as a residential maintenance and alteration contractor
3 be licensed as a salesperson
74
The following are exempt from licensure except:
Associated Answers
1 a government representative
2 an owner of rental property, with reference to the maintenance and alteration of that rental property
3 a person working on one undertaking or project by one or more contracts in which the total contract price is more than $600.00
4 a person operating under an order of the court
3 a person working on one undertaking or project by one or more contracts in which the total contract price is more than $600.00
75
The Department and Board may remove a limitation on a license:
Associated Answers
1 if the licensee retests
2 if the licensee makes restitution
3 if they determine that he could perform with competence each function of the occupation
4 both A and B
3 if they determine that he could perform with competence each function of the occupation
76
```
A builder licensed as Robert Conrad Building Company may advertise as:
Associated Answers
1 Robert Conrad Building Company
2 Conrad Building Company
3 Bob The Builder
4 Robert Conrad Construction
```
1 Robert Conrad Building Company
77
When contracting with a builder to build a house from a set of plans, the builder must provide to the purchaser:
Associated Answers
1 a set of plans
2 a set of the specifications
3 a fully executed copy of all agreements between them
4 all of the above
4 all of the above
78
A restricted license could be one in which:
Associated Answers
1 the licensee may be restricted to a specific function of the occupation
2 the licensee may be restricted to a specified geographical location
3 the licensee may be required to have all of his contracts reviewed by an attorney
4 all of the above
4 all of the above
79
```
Which of the following does not require licensing?
Associated Answers
1 maintenance and alteration contractor
2 residential builder
3 garage builder
4 commercial builder
```
4 commercial builder
80
```
The effective date of the Occupational Law for Residential Builders and Maintenance and Alteration Contractors is:
Associated Answers
1 January 31, 1966
2 January 1, 1966
3 October 21, 1980
4 no such law
```
3 October 21, 1980
81
If you are issued a cease and desist order following a complaint, you:
Associated Answers
1 must cease building for one year
2 are entitled to a hearing before the Bureau, if a written request is made within 30 days
3 have no recourse to regain your license, except by a lawsuit
4 may build until the end of the month
2 are entitled to a hearing before the Bureau, if a written request is made within 30 days
82
```
As used in the Occupational Code:
Associated Answers
1 "complaint" means a verbal or written grievance
2 "board" means apathetic
3 "incompetence" means government action
4 "licensee" means the applicant
```
1 "complaint" means a verbal or written grievance
83
```
A person shall not have a license issued to him or her until the person:
Associated Answers
1 pays the required fee
2 meets the requirements 10 through 26
3 files certificates of insurance
4 all of the above
```
1 pays the required fee
84
```
Public Act 299 provides for licensing and the right to engage in business as:
Associated Answers
1 salesperson
2 residential builder
3 maintenance contractor
4 all of the above
```
4 all of the above
85
A person registering a complaint with the Department against a builder must do so within:
Associated Answers
1 90 days
2 12 months of the purchase
3 18 months of sale, completion, or occupancy, whichever occurs later
4 60 days of the sale
3 18 months of sale, completion, or occupancy, whichever occurs later
86
Act 299 has a specific licensure exemption for:
Associated Answers
1 all 9 members of the builder's board
2 unlicensed builders who disclose their status to their clients
3 employees of licensed builders
4 employees of unlicensed builders
3 employees of licensed builders
87
Who can licensed contractors bring to a hearing to speak on their behalf?
Associated Answers
1 his or her subcontractors
2 a duly authorized representative or attorney
3 the Board member who participated in the investigation
4 they are not allowed to defend themselves
2 a duly authorized representative or attorney
88
What is the purpose of an investigative conference?
Associated Answers
1 to determine what the penalty should be
2 to terminate or suspend the license
3 to determine if there is cause for a hearing or complaint
4 to establish the amount of the fine
3 to determine if there is cause for a hearing or complaint
89
```
How many days advance notice will a person be given before an investigative conference is held?
Associated Answers
1 5 days
2 10 days
3 15 days
4 30 days
```
2 10 days
90
```
How many days does a person have from receipt of a complaint to respond?
Associated Answers
1 5 days
2 10 days
3 15 days
4 30 days
```
3 15 days
91
Can the Department demand a financial statement at any time?
Associated Answers
1 no
2 yes, and the builder shall respond within 30 days
3 yes, and the builder shall respond within 15 days
4 yes, and the builder shall respond within 45 days
2 yes, and the builder shall respond within 30 days
92
Can a builder solicit a contract by promising the purchaser a bonus which is contingent upon the purchaser displaying his dwelling to a third person?
Associated Answers
1 yes, if the agreement is in writing and fully executed
2 no, never
3 yes, as long as the bonus is a fixed amount and not a percentage
4 yes, as long as it is not in writing
2 no, never
93
When a salesperson terminates employment with a builder, what must the salesperson do?
Associated Answers
1 the salesperson returns the license within 5 days via regular mail
2 the salesperson returns the ID pocket card via certified mail within 30 days
3 the salesperson returns the pocket ID card via certified mail within 5 days
4 the builder returns both the pocket ID card and the license to the Department within 5 days via certified mail
3 the salesperson returns the pocket ID card via certified mail within 5 days
94
Where should the licenses be displayed in a builder's office?
Associated Answers
1 on the bathroom wall
2 on the office wall in a conspicuous position
3 in a secure place where they will not be stolen
4 in the file cabinet with other important papers
2 on the office wall in a conspicuous position
95
```
Who sets the standards of conduct, performance, qualifications and fitness of applicants, conducts investigations, settles complaints, and handles disciplinary procedures?
Associated Answers
1 the board
2 the Governor
3 the applicant
4 the "Act"
```
1 the board
96
```
A licensee, upon written demand and notice by the Department, shall within _______ days submit a current and accurate financial statement showing his or her current financial status.
Associated Answers
1 10
2 15
3 30
4 60
```
3 30
97
What is the completion date of a structure?
Associated Answers
1 upon final inspection by state and local inspectors
2 upon final approval of state and local inspectors
3 the date the certificate of occupancy is issued
4 all of the above
3 the date the certificate of occupancy is issued
98
Which of the following cannot be used by the Department to determine the fitness of an applicant to hold a license:
Associated Answers
1 your scores on a license test
2 an arrest for an offense, which is not followed by conviction
3 your general financial solvency
4 your standards of professionalism and competency
2 an arrest for an offense, which is not followed by conviction
99
When criminal charges are brought against a builder he:
Associated Answers
1 can avoid a penalty by assigning blame to his subcontractors
2 has the same right to legal process as anyone accused of an offense
3 can no longer do business in Michigan
4 can only ask for a hearing before the Bureau of Professional and Occupational Regulation
2 has the same right to legal process as anyone accused of an offense
100
If the builder decides on his own to use cheaper materials than specified without a change order he is:
Associated Answers
1 acting in violation of the code, even if the materials themselves are not in violation of the code
2 breaking the contract between himself and the owner
3 limiting his legal claim to payment by the owner
4 all of the above
4 all of the above
101
) When a builder signs a citation issued by the Bureau, it:
Associated Answers
1 means the builder cannot be further penalized by the Bureau for that offense
2 is acceptance of a cease and desist order
3 only indicates that the citation has been received by the builder
4 means that the builder has admitted to the violation and has forfeited his right to a hearing
3 only indicates that the citation has been received by the builder
102
If a company loses their qualifying officer, the company’s license is suspended.
Associated Answers
1 true
2 false
1 true
103
```
f you wish to renew a license that has expired within 60 days of the expiration date, you must pay a late renewal fee of ____ plus the license fee.
Associated Answers
1 $10
2 $20
3 $30
4 $40
```
$20
104
```
How many board members are needed to constitute a quorum?
Associated Answers
1 4
2 5
3 6
4 7
```
2 5
105
ole proprietors, corporations, LLCs and partnerships all have to purchase a license. What other entities require the purchase of a license?
Associated Answers
1 sales persons
2 qualifying officers of Corps, LLCs and Partnerships
3 all branch offices
4 all of the above
4 all of the above
106
) If there is a contractual agreement to use arbitration as a means of settling disputes, will the board take action against a licensee if the step required in the arbitration agreement are met by the contractor.
Associated Answers
1 yes
2 no
2 no
107
```
What must sales people and contractors use to identify themselves to potential customers in door to door sales?
Associated Answers
1 their business card
2 their wallet license ID card
3 their license number
4 any of the above
```
2 their wallet license ID card
108
```
A corporation has three branch offices and six sales people. If all of these licenses expire in the same year, how many licenses must be renewed by May 31st?
Associated Answers
1 2
2 5
3 8
4 11
```
4 11
| Notes: 1 for their qualifier, 1 for the corporation, 3 for the branch offices and 6 for the sales people.
109
```
Sworn Statements are required by law to be used by contractors as a means of relinquishing financial transparency to the owners, material providers or subcontractors. If the owner requested a copy of a builders sworn statement, how may days does the contractor have to provide it?
Associated Answers
1 1
2 3
3 7
4 10
```
4 10
110
The company's listed on a contractors sworn statement will typically be material providers and subcontractors.
Associated Answers
1 true
2 false
1 true
111
```
How many days does a contractor or material provider have to file a lien against an owner's property from their last day on the job or from time of purchase
Associated Answers
1 30 days
2 45 days
3 60 days
4 90 days
```
4 90 days
112
```
Subcontractors and material suppliers must provide to the owner of a project their "Notice of Furnishings" within ____ days of first providing any labor or materials.
Associated Answers
1 5
2 10
3 15
4 20
```
4 20
113
```
A person who files a lien must take action to foreclose on the lien within _______.
Associated Answers
1 30 days
2 3 months
3 6 months
4 1 year
```
4 1 year
114
```
Owners must make available a "Notice of Commencement" which will provide the correct information as to the owner or owners of a property and their correct addresses. If a contractor requests a copy the owner must provide it within ________.
Associated Answers
1 10 days
2 15 days
3 20 days
4 30 days
```
1 10 days
115
Contractors who understand what their responsibilities are under the lien laws of Michigan will file the necessary forms and protect their right to be paid.
Associated Answers
1 true
2 false
1 true
116
Both LLCs and _______ need to provide copies of their Articles of Incorporation when applying for a license.
```
Associated Answers
1 Sole Proprietorships
2 Joint Ventures
3 Partnerships
4 Corporations
```
4 Corporations
117
Passing test scores are only good for:
```
Associated Answers
1 90 days
2 1 year
3 18 months
4 2 years
```
2 1 year
118
)
Salespeople may only work under one contractor at a time.
Associated Answers
1 True
2 False
1 True
119
)
If a license is suspended or revoked, the licensee must return it to the Department within:
```
Associated Answers
1 3 days
2 5 days
3 7 days
4 10 days
```
4 10 days
120
If a qualifying officer leaves a company, they have ______ to notify the Department in writing.
```
Associated Answers
1 10 days
2 24 hours
3 30 days
4 60 days
```
1 10 days
121
Residential builders are required by law to have an actual office in Michigan where their business records are kept.
Associated Answers
1 True
2 False
1 True
122
Which of the following does not need to be included in a residential construction contract?
```
Associated Answers
1 specifications and plans
2 costs
3 type and amount of work to be done
4 professional architect or engineer approval
```
4 professional architect or engineer approval
123
If someone makes a complaint aggainst you, you must respond to the notice within _____ of receipt.
```
Associated Answers
1 7 days
2 10 days
3 15 days
4 30 days
```
3 15 days
124
If you have let your licesne lapse, you are still responsible for reporting a change of address:
Associated Answers
1 up to 7 years after the license has changed
2 3 years after all complaints have been closed
3 Until all final orders have been complied with
4 Any of the above
4 Any of the above
125
)
If you are late to renew your license, there is a fee of:
```
Associated Answers
1 $15
2 $20
3 $25
4 $50
```
2 $20
126
An arrest record that was not followed by a conviction is still considered as a count against you when applying for a license.
Associated Answers
1 True
2 False
2 False
127
The ___________ is a Michigan specific civil rights legislation.
```
Associated Answers
1 Walsh-Healy Act
2 Elliott-Larson Civil Rights Act
3 Civil Rights Act of 1866
4 Fair Housing Act
```
2 Elliott-Larson Civil Rights Act
128
Which of the following is NOT exempt under the Ellliott-Larson and Persons with Disabilities Acts?
Associated Answers
1 rental of a unit in a two-family dwelling that is occupied by the owner
2 rental of a room in a single-family dwelling occupied by the owner
3 sale of a by the owner of a unit in a two-family dwelling
4 rental of a unit in a multi-family dwelling
4 rental of a unit in a multi-family dwelling
129
These laws shape and influence what job restrictions and qualifications may be established, how advertisement are placed and what tests may be used in the applicant screening process.
```
Associated Answers
1 Equal Employment Opportunity
2 Fair Housing
3 Dodd-Frank
4 TRID
```
1 Equal Employment Opportunity
130
Which of the following is NOT an acceptable question or topic to discuss with a potential candidate?
Associated Answers
1 Reason for leaving their previous job
2 Description of a typical day at current job
3 Birthplace of the applicant or their parents
4 How long they have been job hunting
3 Birthplace of the applicant or their parents
131
Which of the following pre-employment questions pose legal implications by tending to single out specific protected classes?
```
Associated Answers
1 Previous arrest records
2 Financial status
3 Birth dates
4 All the above
```
4 All the above
132
)
_____ is a naturally occurring fibrous mineral.
```
Associated Answers
1 lead
2 asbestos
3 silica
4 radon
```
2 asbestos
133
ACM (Asbestos Containing Material) is any material containing more than _____ % asbestos.
```
Associated Answers
1 1%
2 5%
3 7%
4 10%
```
1 1%
134
Records of asbestos exposure must be kept for:
```
Associated Answers
1 5 years
2 10 years
3 20 years
4 30 years
```
4 30 years
135
The agency responsible for promulgating and enforcing the Renovation, Repair and Painting Program is:
```
Associated Answers
1 DNR
2 EEOC
3 HUD
4 EPA
```
4 EPA
136
When considering lead-based paint exposure, are hospitals considered "target" housing?
Associated Answers
1 Yes
2 No
2 No
137
Houses built before _______ typically have lead paint risk factors.
```
Associated Answers
1 1990
2 1978
3 2000
4 2003
```
2 1978
138
Since 2010, all contractors who work with homes built prior to 1978 with lead paint hazards must be certified renovators.
Associated Answers
1 True
2 False
1 True
139
EPA has established limits for minor repairs of maintenance, that do not require compliance with the RRP Rule. Work that does not exceed _____ sq ft per interior room of 20 sq ft is exempt.
```
Associated Answers
1 4 sq ft
2 6 sq ft
3 8 sq ft
4 10 sq ft
```
2 6 sq ft
140
RP certifications are good for:
```
Associated Answers
1 2 years
2 3 years
3 5 years
4 6 years
```
3 5 years
141
You may become certified by taking a 4 hour course provided by the local building department.
Associated Answers
1 True
2 False
False
142
Documentation of renovations, testing and training related to renovations must be kept for:
```
Associated Answers
1 2 years
2 3 years
3 5 years
4 7 years
```
2 3 years
143
hsi radioactive gas comes from the natural breakdown of uranium soil, rock and water.
```
Associated Answers
1 asbestos
2 radon
3 lead
4 sulphur
```
2 radon
144
A ______ layer of clean gravel below the slab allows radon gas to move more freely under the building.
```
Associated Answers
1 2 inch
2 3 inch
3 4 inch
4 6 inch
```
3 4 inch
145
_______ should be placed on top of the gravel base to prevent the radon gas from entering the house.
```
Associated Answers
1 rigid foam
2 loose fill
3 cardboard
4 heavy plastic sheeting
```
4 heavy plastic sheeting
146
It is recommended you run a 3 or 4 inch PVC pipe from the gravel to the roof where radon can be safely vented out of the house.
Associated Answers
1 True
2 False
True
147
```
Which business organization is regulated the least by the government?
Associated Answers
1 Limited Liability Company
2 Corporation
3 Partnership
4 Sole Proprietorship
```
4 Sole Proprietorship
148
In a general partnership, each partner is liable for the debt of the company up to the percentage of the company they own.
Associated Answers
1 true
2 false
2 false
149
```
What business organization provides the most financial protection for the owners?
Associated Answers
1 Sole Proprietorship
2 General partnership
3 Corporation
4 Limited Partnership
```
Corporation
150
Sole Proprietorships can issue and sell stock in the company to raise capital.
Associated Answers
1 true
2 false
2 false
151
Can a corporation actually be listed as the sole owner of a property?
Associated Answers
1 yes
2 no
1 yes
152
Limited Liability Companies have the ability to be passed down to family members when an owner (member) dies.
Associated Answers
1 true
2 false
2 false
153
Sub Chapter "S" Corporations can retain their status no matter how many stockholders they have.
Associated Answers
1 true
2 false
2 false
154
f you are naming the Sole Proprietorship something other than your real name, you will need to file a Certificate of Assumed Name with the county clerk’s office.
Associated Answers
1 True
2 False
True
155
```
A builder's personal income will be reflected on tax returns except:
Associated Answers
1 Sole Proprietorship
2 Partnerships
3 Limited Liability Company's
4 C-Corporations
```
4 C-Corporations
156
) A sole proprietorship is not considered to be a legal entity under the law, but rather is an extension of the individual who owns it.
Associated Answers
1 true
2 false
1 true
157
Parternerships must file a certificate of co-partnership with the county clerk’s office in the counties in which you will be doing business.
Associated Answers
1 true
2 false
true
158
```
A 50/50 partnership dissolves and one of the partners does not fulfill his responsibility to pay off creditors. To what extent must the other partner contribute to this debt in order to keep his good name and standing?
Associated Answers
1 50 %
2 75%
3 100%
4 these things can be negotiated
```
3 100%
159
Corporations are entities that are separate and distinct from their owners. This means that the debt of the company does not transfer to the owners.
Associated Answers
1 true
2 false
1 true
Notes: Creditor will often require corporations, limited liability company's and partnerships to sign a personal guarantee for repayment of loans, especially in the early stages of the company's development.
160
```
C- Corporations are taxed on their earnings at the corporate level and the owners are then taxed on any cash distribution they receive, this is referred to as?
Associated Answers
1 a rip off
2 double taxation
3 dividend taxation
4 none of the above
```
2 double taxation
161
```
Corporations who qualify can elect to be treated as an _____________ to avoid double taxation.
Associated Answers
1 individual
2 seperate entity
3 S-Corporation
4 LLC
```
3 S-Corporation
162
S-Corporations, Partnerships and LLCs must all file income tax returns and pay tax on profits.
Associated Answers
1 true
2 false
2 false
| Notes: Only C-Corporations pay tax on profits
163
Owners or members of S-Corporations, Partnerships and Limited Liability Company's who collect distributions from profit made by these company's pay individual income tax on these distributions.
Associated Answers
1 true
2 false
1 true
164
) An advantage that a Limited Liability Company has over a partnership is?
Associated Answers
1 employees can be issued a 1099
2 limited liability of the members
3 employers are not liable for unemployment tax
4 lower insurance cost
2 limited liability of the member
165
```
Temporary storage facilities, dumpsters and utilities are considered _________ overhead.
Associated Answers
1 company
2 project
3 indirect
4 None of the above
```
2 project overhead
166
```
) Indirect labor costs like taxes and insurance are sometimes referred to as ______________________________.
Associated Answers
1 Labor Burden
2 Cost of doing business
3 Payroll expenses
4 All of the above
```
1 Labor Burden
167
A contractor should not only consider the costs of equipment needed to build the project, whether owned or rented, but also the operating/maintenance expenses, repair of, storage, delivery, finance cost, insurance, and taxes.
Associated Answers
1 true
2 false
1 true
168
```
When adding profit to an estimate, the value is usually ___________________________.
Associated Answers
1 a flat fee
2 a percentage of the total job cost
3 30%
4 25%
```
2 a percentage of the total job cost
169
```
What are the first steps in completing an estimate?
Associated Answers
1 Review project documents
2 Conduct environmental assessments
3 Inspect the job site
4 All of the above
```
4 All of the above
170
Unit price estimates consist of assigning costs to each separate unit (task) of construction.
Associated Answers
1 true
2 false
1 true
171
```
A complete list of all of the materials and items of work that would be required to complete a project are ______________________________________________.
Associated Answers
1 material and time data sheets
2 quantity surveys (take off)
3 labor and material break downs
4 shopping lists
```
2 quantity surveys (take off)
172
```
It is always wise to choose the subcontractor who provides the lowest bid.
Associated Answers
1 true
2 false
Notes:
```
2 false
173
What would be the best source to use when estimating job site overhead?
Associated Answers
1 Overhead site survey
2 Local lumber company
3 Historical job site overhead costs records
4 None of the above
3 Historical job site overhead costs records
174
```
Recognizing that delays are inevitable, the schedule should plan for this by considering ____________________.
Associated Answers
1 Contingency time
2 Float time
3 Extra time
4 None of the above
```
1 Contingency time
175
```
____________________are reasonable estimates of funds set aside for a particular item in a project (such as lighting fixtures). The contractor is not held to that price.
Associated Answers
1 Budget overrides
2 Allowances
3 Budget tolerance expectancies
4 All of the above
```
2 Allowances
176
```
The basic hourly wage incurred while an employee is being productive in the building process is known as ______________________________________.
Associated Answers
1 direct labor cost
2 scale
3 reasonable wage
4 overtime
```
1 direct labor cost
177
```
An advantage to renting equipment can be __________ .
Associated Answers
1 short term need
2 distant job location
3 no maintenance costs
4 all of the above
```
4 all of the above
178
```
Typical industry markup is _____%.
Associated Answers
1 10
2 15
3 18
4 20
```
2 15
179
```
The cost of having employees includes their hourly wage and other expenses not included in their wage such as, matching the employees social security and medicare contributions, unemployment and workers compensation expenses. These additional costs are called _________________.
Associated Answers
1 payroll taxes
2 negitive cash flow
3 labor burden
4 any of the above
```
3 labor burden
180
```
Items not specified in the project plans such as plumbing fixtures, electrical fixtures, and flooring can be handled by negotiating a budget for these items not yet decided upon. These additional monies set aside for the owner are called ___________ .
Associated Answers
1 contingencies
2 allowances
3 contract take off items
4 none of the above
```
2 allowances
181
```
Which of the following are indirect job cost expenses?
Associated Answers
1 equipment depreciation
2 a superintendant at the jobsite
3 bonds and permits
4 all of the above
```
1 equipment depreciation
182
```
Which of the following are direct job cost expenses?
Associated Answers
1 subcontractors fees
2 material costs
3 rental equipment fees
4 all of the above
```
4 all of the above
183
```
A contractor developed his bid charging his customer $7.50 a square foot to purchase and install flooring materials. This type of estimate is referred to as?
Associated Answers
1 unit price estimate
2 lump sum
3 conceptual estimate
```
1 unit price estimate
184
)
Any changes to the bid before it is due can be submitted by an _________.
```
Associated Answers
1 appeal
2 addendum
3 change order
4 submittal
```
2 addendum
185
Factors that will influence and contribute to the cost of a project include all but the following:
```
Associated Answers
1 equipment
2 financial stability
3 overhead
4 degree of difficulty
```
2 financial stability
186
A _____________ assigns tasks and materials to specific job categories, such as supervision, clean-up, labor/materials and project general conditions.
```
Associated Answers
1 Value Engineering System
2 Contingency Plan
3 Change Proposal Log
4 Job Cost System
```
4 Job Cost System
187
Profit is the amount of money left over after a project is 100 percent complete and referred to as net, or clear profit.
Associated Answers
1 True
2 False
1 True
188
```
In order for a contract to become a binding document, it must contain four key elements which are an offer and acceptance, competent parties, legal purpose and:
Associated Answers
1 Consideration
2 Evaluation
3 Notary
4 Witnesses
```
1 Consideration
189
The term consideration means that both parties to a contract must be exchanging something of value.
Associated Answers
1 true
2 false
1 true
190
```
What is the term used to identify changes made to contract documents before the execution of the basic owner contractor agreement?
Associated Answers
1 change orders
2 modifications
3 Addenda
4 All of the above
```
3 Addenda
191
Oral contracts are valid, but are often difficult to enforce.
Associated Answers
1 true
2 false
Notes: Michigan requires that all residential construction projects be in writing!
2 false
| Notes: Michigan requires that all residential construction projects be in writing!
192
```
Terms used in a contract that allow the owner to withhold an agreed upon percentage of the contract funds until the project is 100% complete is called:
Associated Answers
1 Withholding allowance
2 Retainage
3 Retainer
4 Escrow
```
2 Retainage
193
```
Changes made to the contract documents after the signing of the basic owner-contractor agreement are called:
Associated Answers
1 Addenda
2 Modifications
3 Notary
4 Bulletins
```
2 Modifications
194
Change orders are an example of contract modifications.
Associated Answers
1 true
2 false
1 true
195
```
When the contractor assumes all design and construction responsibilities this contract is known as:
Associated Answers
1 Turn key
2 Design/Build
3 Fast Track
4 Single prime
```
2 Design/Build
196
```
These are common contract terms that predetermine how important issues involved in a lawsuit will be addressed, such as attorney's fees being recouped by the prevailing party in the lawsuit, or agreeing to arbitration as a method of resolving disputes.
Associated Answers
1 recitals
2 boilerplate provisions
3 rescissions
4 addenda
```
2 boilerplate provisions
197
The first and most important element in a contract is offer and acceptance.
Associated Answers
1 true
2 false
1 true
198
Retainage is usually paid with the final payment.
Associated Answers
1 true
2 false
1 true
199
The contract should provide for a schedule as to when progress payments will be disbursed and the amount of money that will be available to the contractor at each payment.
Associated Answers
1 true
2 false
1 true
200
```
A ____________ is when the terms of the contract have been violated to the extent that the contract can no longer be valid.
Associated Answers
1 liquidation
2 material misrepresentation
3 material breach
4 immaterial breach
```
3 material breach
201
```
) You have a new roof and with the first heavy down pour of rain it's leaking. There is no written warranty from the contractor, what type of warranty will require the contractor to correct the problem?
Associated Answers
1 limited warranty
2 special warranty
3 specific warranty
4 implied warranty
```
4 implied warranty
| Notes: Just by the nature of the job itself there is an implied warranty. People reroof their roof so they won't leak!
202
```
A subcontract is a contract between the subcontractor and which of the following?
Associated Answers
1 the laborers
2 the material providers
3 the owner
4 the prime contractor
```
4 the prime contractor
Notes: Large projects will typically have one contractor who is contracting with the owner, which means it's a prime contract. All other service providers then contract through the general contractor who is prime.
203
```
Contracts entered into that were initiated through a solicitation require the contractor to inform the customer of their right to cancel the contract within 3 days of the signing. The contract itself must have this information in at least _______ point font and in bold print.
Associated Answers
1 6
2 8
3 10
4 12
```
3 10 point font
204
Contracts signed at the contractor's place of business do not qualify the customer to be able to cancel the contract within 3 days.
Associated Answers
1 true
2 false
1 true
205
Contractors who start a project initiated through a solicitation before the customer's 3 day right to cancel, risk losing their wages, including the materials expended.
Associated Answers
1 true
2 false
1 true
206
```
hich of the following is NOT a basic element of a contract?
Associated Answers
1 legal purpose
2 offer and acceptance
3 arbitration clause
4 consideration
```
3 arbitration clause
207
```
) The details of the contract regarding who, how, what, how much, how many, when, etc., are called its____________.
Associated Answers
1 provisions or terms
2 clauses
3 addenda
4 stipulations
```
1 provisions or terms
208
```
This method of contracting allows for the project to begin before the project's entire specifications have been decided upon.
Associated Answers
1 Construction Management
2 Design Build
3 Fast Track
4 Turnkey
```
3 Fast Track
209
```
This method of contracting involves one contract that the owner enters into to build (but not design) the structure with a single contractor.
Associated Answers
1 Single Prime
2 Turnkey
3 Design-Build
4 Construction Management
```
1 Single Prime
210
```
In this method of contracting, the owner contracts with a construction manager to schedule and manage construction tasks. The construction manager typically would receive a fee to manage the project from conception to completion.
Associated Answers
1 Turnkey
2 Design-Build
3 Construction Management
4 Fast Track
```
3 Construction Management
211
```
This method of contracting is preferred by owners who want to deal with one firm for the entire project. The firm they hire will complete the project from the early design stages to the final completion of the project.
Associated Answers
1 single prime contracting
2 design build contracting
3 construction management system
4 fast track construction
```
2 design build contracting
212
```
Which of the following dispute resolution alternatives uses a neutral person to review and render a decision that is binding?
Associated Answers
1 Negotiation
2 Collaboration
3 Mediation
4 Arbitration
```
4 Arbitration
213
```
) The primary job of a project manager is to complete the project according to its specifications:
Associated Answers
1 Within budget
2 On Schedule
3 With the expected degree of quality
4 All of the above
```
4 All of the above
214
) The critical path schedule shows how the tasks on the schedule are inter-related.
Associated Answers
1 true
2 false
1 true
215
```
By preparing a ________________ project managers will better understand the cash needed at the intervals that the monies will be disbursed.
Associated Answers
1 Preliminary cash flow schedule
2 budget
3 tracking schedule
4 none of the above
```
1 Preliminary cash flow schedule
216
```
) In order to schedule time slots for all of the individual tasks involved in completing a project, first we need to identify each ______________.
Associated Answers
1 subcontractor
2 phase of the project
3 task
4 all of the above
```
3 task
217
```
A major benefit of the critical path method of scheduling is it shows how one project task will be dependent on the completion of other tasks that come before it in a ________________.
Associated Answers
1 logical sequence
2 building project
3 orderly fashion
4 desending order
```
1 logical sequence
218
```
This chart graphs the starting and finishing times for individual tasks that make up the project.
Associated Answers
1 bar chart
2 gantt chart
3 duration chart
4 either A or B
```
4 either A or B
219
```
When two contracting firms unite their forces to construct a project it is called a:
Associated Answers
1 partnership
2 merger
3 conglomerate
4 joint venture
```
4 joint venture
| Notes: Some states even require that joint ventures purchase an additional license.
220
```
The _________ method is an analysis that provides a diagram that depicts the longest continuous sequence of activities in a project, determining the overall amount of time to complete a project.
Associated Answers
1 Bar Chart
2 Gantt Chart
3 Critical Path
4 Calendar Scheduling
```
3 Critical Path
221
```
_____________ is a form of managing tasks that is best for simple, less complicated projects. It enables the contractor to link specific tasks to a date, manage deliveries, payments and employment schedules in a very simple, straightforward way.
Associated Answers
1 Gantt Charting
2 Critical Path method
3 Calendar scheduling
4 Queue Scheduling
```
3 Calendar scheduling
222
```
) In a construction project, _________ time is the amount of time that a task in a project network or path can be delayed without causing a delay to other, subsequent tasks or to the overall completion date.
Associated Answers
1 Contingency
2 Float
3 Duration
4 Flex
```
2 Float
223
```
Cash receipts, customer invoices and time cards are all examples of:
Associated Answers
1 Important records
2 Source Documents
3 Bookkeeping
4 Accounting
```
2 Source Documents
224
```
Where is information from a business journal posted?
Associated Answers
1 General ledger
2 Log book
3 Financial statement
4 Balance sheet
```
1 General ledger
225
```
Which of the below choices is an example of a financial statement?
Associated Answers
1 Balance Sheet
2 Income Statement
3 Statement of Cash Flows
4 All of the above
```
4 All of the above
226
```
An example of a fixed asset would be:
Associated Answers
1 cash
2 machinery
3 accounts receivable
4 prepaid expenses
Notes:
```
2 machinery
227
```
What would be an example of a fixed liability?
Associated Answers
1 electric bill
2 lumber package invoice
3 troublesome relative
4 mortgage on a company's building
```
4 mortgage on a company's building
228
```
This is the time required to purchase or manufacture a company's inventory, sell the product, and collect the revenue.
Associated Answers
1 purchasing cycle
2 operating cycle
3 scheduling cycle
4 none of the above
```
2 operating cycle
229
```
An income statement is sometimes called a:
Associated Answers
1 balance sheet
2 profit and loss statement
3 statement of cash flow
4 general ledger
```
2 profit and loss statement
230
```
What financial statement will provide a company's net worth?
Associated Answers
1 balance sheet
2 general ledger
3 assets and liabilities statement
4 net worth statement
```
1 balance sheet
231
```
Which of the following methods of accounting is used to record income at the time it is earned?
Associated Answers
1 depreciation method
2 amortization method
3 cash method
4 accrual method
```
4 accrual method
232
```
An example of a current asset is ___________ .
Associated Answers
1 cash
2 inventory
3 real estate
4 both a and b
```
4 both a and b
233
```
_______ writes off the depreciable value of an asset at a uniform rate throughout its usable life.
Associated Answers
1 Accelerated depreciation
2 Uniform rate depreciation
3 Fixed depreciation
4 Straight-line depreciation
```
4 Straight-line depreciation
234
Profitability ratios show the relationship between income or revenues versus investments and assets.
Associated Answers
1 true
2 false
1 true
235
```
The process of allocating the cost of a tangible fixed asset over the asset’s useful life is called _____________ .
Associated Answers
1 appreciation
2 depreciation
3 accrual
4 none of the above
```
2 depreciation
236
```
If a company has $37,525 in current assets and $12,672 in current liabilities, what is this company's liquidity ratio?
Associated Answers
1 2.96
2 3.32
3 3.63
4 3.87
```
1 2.96
Notes: Current Assets divided by Current Liabilities = Liquidity Ratio
237
```
If a company has debt totaling $128,000 and total assets of 463,250 what is this company's debt ratio?
Associated Answers
1 .252
2 .265
3 .276
4 .31
```
3 .276
Notes: Total Debt divided by Total Assets = Debt Ratio
238
```
If a company has current assets totaling $257,525 and an inventory value of $25,617 and current liabilities of $65,717, what is this company's quick ratio?
Associated Answers
1 3.17
2 3.25
3 3.35
4 3.52
```
4 3.52
| Notes: (Current Assets - Inventory) divided by Current Liabilities = Quick Ratio
239
```
Last year our company produced revenues totaling $865,125 and we secured a net income of $265,463. What is our profitability ratio for last year?
Associated Answers
1 .306
2 .318
3 .32
4 .378
```
1 .306
Notes: Net Income divided by Revenues = Profitability Ratio
240
The needed cash flow for a project should be provided for in the written terms of a contract to insure the needed monies are available to pay for expenses as the job progresses.
Associated Answers
1 true
2 false
1 true
241
A financial statement that provides a summary of the company's revenues and expenses over a given period of time is:
Associated Answers
1 balance sheet
2 income statement or profit and loss statement
3 statement of cash flows
4 any of the above
2 income statement or profit and loss statement
242
```
A creditor's claims on a company's assets is called a___________.
Associated Answers
1 disbursement
2 cash flow
3 liabilitity
4 any of the above
```
3 liabilitity
243
Workers Compensation is paid for by the employer, no monies are deducted from the employees pay check to help pay for this expense.
Associated Answers
1 true
2 false
1 true
244
```
An invoice is received from a supplier dated June 1st in the amount of $4275.24, the payment terms are 5/10 EOM. How much does the contractor owe if the payment is made on June 8th?
Associated Answers
1 $4275.24
2 $3847.72
3 $4061.48
4 $4270.24
```
3 $4061.48
Notes: 5 percent discount if paid within 10 days of the invoice date or the total amount is due at the end of the month
245
```
The __________ method of accounting records income when services occur (at the time of invoicing the customer), and expenses are recorded at the time they are incurred ( when invoices are received).
Associated Answers
1 cash
2 accural
3 cash flow
4 posting
```
2 accural
246
```
Your balance sheet is used to describe the financial status of your business:
Associated Answers
1 as of a specific date
2 for the fiscal year
3 for the calander year
4 for a particular
```
1 as of a specific date
247
The formula for calculating working capital is:
Associated Answers
1 Assets minus liabilities
2 Assets divided by liabilities
3 Current assets minus current liabilities
4 Net income divided by revenues
3 Current assets minus current liabilities
248
aborers' salaries are typically direct cost.
Associated Answers
1 True
2 False
1 True
249
```
Which of the following methods of accounting is used to record income at the time it is earned?
Associated Answers
1 depreciation method
2 amortization method
3 cash method
4 accrual method
```
4 accrual method
250
```
Prompt Payment Law requires owners to pay contractors within ________ days of receiving the contractor's written request if the conditions of the contract have been met by the contractor.
Associated Answers
1 10
2 20
3 30
4 60
```
3 30
251
```
) A system of recording and summarizing business and financial transactions is called _______________.
Associated Answers
1 Record-keeping
2 Tracking
3 Accounting
4 Economics
```
3 Accounting
252
```
A company's cash, accounts receivable, inventory, notes receivable and prepaid expenses are examples of ______________________.
Associated Answers
1 Asset
2 Current Assets
3 Capital
4 Liability
```
2 Current Assets
253
Accounting is based on five basic account types:
Associated Answers
1 Assets, Liabilities, Income, Disbursements and Payroll
2 Assets, Liabilities, Equity, Income and Expenses
3 Income, Expenses, Revenues, Costs and Liabilities
4 Liquidity, Equity, Liabilities, Income and Capital
2 Assets, Liabilities, Equity, Income and Expenses
254
1/10 Net 30 means:
Associated Answers
1 1% discount if paid by the 10th day of the month after the purchases are shipped
2 1% discount if paid within 10 days; otherwise the entire amount is due within 30 days
3 Payment is due 10 days after receiving the invoice
4 Cash on Delivery
2 1% discount if paid within 10 days; otherwise the entire amount is due within 30 days
255
```
What Federal Form do employers have new employees complete in order for the employer to determine the correct amount of federal income tax to withhold from the employee's paycheck?
Associated Answers
1 W-2
2 W-4
3 1040
4 1065
```
2 W-4
256
) What federal act provides for the lawful deduction of an employee's wages to pay for old age, survivors, disability and hospital insurance?
Associated Answers
1 Social Security Act
2 Federal Insurance Contributions Act (FICA)
3 Medicare Act
4 Retirement Act
2 Federal Insurance Contributions Act (FICA)
257
Both employers and employees pay federal unemployment taxes.
Associated Answers
1 true
2 false
2 false
258
```
Federal law generally requires that sole proprietors, partners, and S-Corporations make estimated tax payments if they expect to owe at least _______ in taxes for the current year.
Associated Answers
1 $1,000
2 $1,500
3 $2,000
4 $5,000
```
1 $1,000
259
```
You must pay self-employment taxes if your net earnings were ________ or more.
Associated Answers
1 $400
2 $500
3 $1,000
4 $1,500
```
1 $400
260
```
As an employer, you are responsible for filing which of the following employment taxes?
Associated Answers
1 federal unemployment tax
2 federal income tax
3 social security tax
4 all of the above
```
4 all of the above
261
```
What IRS publication provides employers with tables providing the necessary information for appropriate federal tax deductions?
Associated Answers
1 Circular E
2 Form 1065
3 W-2
4 W-4
```
Circular E
262
) The only payroll taxes that both the employer and the employee contribute to equally are, Social Security and Medicare.
Associated Answers
1 true
2 false
1 true
263
```
What type of insurance will protect the contractor for losses due to a fire on his construction project?
Associated Answers
1 All Risk Builders insurance
2 General liability insurance
3 Professional liability insurance
4 None of the above
```
1 All Risk Builders insurance
264
Any monies paid out by a surety company will need to be paid back.
Associated Answers
1 true
2 false
1 true
265
```
quipment in transit, on the premises or at the job site, would typically be covered by:
Associated Answers
1 General liability policy
2 All risk building insurance
3 Equipment floater policy
4 None of the above
```
3 Equipment floater policy
266
```
The __________ requires that federal projects valued over $100,000 must produce a performance bond to guarantee completion of the project under the terms of the contract.
Associated Answers
1 Walsh Healy Act
2 Service Contract Act
3 Miller Act
4 None of the above
```
3 Miller Act
267
```
What type of insurance covers a builder against theft of materials from a job site?
Associated Answers
1 liability
2 builder's risk
3 workers' compensation
4 homeowners
```
2 builder's risk
268
```
) A bond that insures that the activities on a construction project are the same as the intended activities for which the permit was granted is called a ______________ .
Associated Answers
1 Contract Surety Bond
2 Permit Bond
3 Surety Bond
4 Performance Bond
```
2 Permit Bond
269
```
_________ is when the homeowner is accepting the risk related to the project, instead of the general contractor.
Associated Answers
1 Home owner insurance
2 Wrap-up Liability insurance
3 Key Man insurance
4 Personal Liability Insurance
```
2 Wrap-up Liability insurance
270
mployers in Michigan are required to purchase workers compensation insurance for their employees when:
Associated Answers
1 one employee work 35 hours or more in the past 13 weeks
2 when they have 3 or more part-time employees
3 someone gets injured
4 both A and B are correct
both A and B are correct
271
```
What benefits does workers compensation insurance provide to injured employees?
Associated Answers
1 2/3 wage replacement
2 medical treatment
3 rehabilitation benefits
4 all of the above
```
4 all of the above
272
```
What is an insurance policy taken out to cover the financial loss that would arise from the death or extended incapacity of the member of the business specified on the policy.
Associated Answers
1 liability insurance
2 workers compensation insurance
3 key man insurance
4 any of the above
```
3 key man insurance
273
```
What type of bond guarantees that the general contractor will pay the subcontractors, laborers and material suppliers associated with the project. It guarantees that the project will have no claims or liens placed against it.
Associated Answers
1 bid bond
2 performance bond
3 payment bond
4 any of the above
```
3 payment bond
274
```
n owner shall provide a complete ______________ to a contractor, subcontractor, supplier or laborer who has requested it.
Associated Answers
1 Notice of Furnishing
2 Letter of Authority
3 Notice of Commencement
4 Formal Contract
```
3 Notice of Commencement
275
```
ubcontractors and suppliers must provide a Notice of Furnishing either personally or by certified mail within ______ after first furnishing materials.
Associated Answers
1 7 days
2 10 days
3 20 days
4 30 days
```
3 20 days
276
```
contractor must provide a Sworn Statement when ___________.
Associated Answers
1 payment is due
2 when the contractor requests payment
3 when an owner demands ot see it
4 all of the above
```
4 all of the above
277
```
A ________________ is used when a contractor is going to be collecting more funds as the job progresses, but is releasing his lien right to the extent of money owed to this point. (The actual payment has been made.)
Associated Answers
1 Full Unconditional Waiver
2 Full Conditional Waiver
3 Partial Unconditional Waiver
4 Partial Conditional Waiver
```
3 Partial Unconditional Waiver
278
```
Court procedings to enforce a construction lien must be held within __________ of the date the lien was recorded.;
Associated Answers
1 90 days
2 6 months
3 1 year
4 18 months
```
3 1 year
279
```
) In order for foreclosure, the judge can give the defendant a time limit to pay as ordered, not to exceed _________.
Associated Answers
1 30 days
2 90 days
3 4 months
4 6 months
```
3 4 months
280
Companies with fewer than 10 employees are not required to prepare a written hazard communication program, even though hazardous chemicals are being used.
Associated Answers
1 False
2 True
1 False
281
```
) The duties of the DEQ include which of the following?
Associated Answers
1 issuing permits
2 conducting inspections
3 enforcing environmental laws
4 all of the above
```
4 all of the above
282
```
Employers are required to post OSHA Form _______ (Summary of Work-Related Injuries and Illnesses) in a conspicuous spot.
Associated Answers
1 300
2 301
3 300A
4 301A
```
3 300A
283
MIOSHA records must be kept by the employer for at least ____ years following the year to which they pertain. Exposure and medical records must be kept for_____ years.
```
Associated Answers
1 3 and 7
2 5 and 15
3 5 and 30
4 3 and 30
```
5 and 30
284
These are violations committed with an intentional disregard of, or plain indifference to the requirement of the MIOSHA regulations. The initial penalty is a minimum of $5,000 and a maximum of $70,000.
```
Associated Answers
1 Repeat
2 Serious
3 Ongoing
4 Willful
```
4 Willful
285
```
) The minimum working age for a young person is _____ .
Associated Answers
1 12
2 14
3 16
4 17
Notes:
```
2 14
286
```
) The ____________ establishes minimum wage and overtime compensation standards.
Associated Answers
1 Davis-Bacon Act
2 Service Contract Act
3 Wage Garnishment Law
4 Fair Labor Standards Act
```
4 Fair Labor Standards Act
287
```
) The purpose of the ______ is to document that each new employee (both citizen and non-citizen) hired after November 6, 1986 is authorized to work in the United States.
Associated Answers
1 I-9 form
2 W-2 form
3 W-4 form
4 1040 EZ form
```
1 I-9 form which employers must keep record of completed forms for 3 years after date of hire
288
```
The Americans with Disabilities Act applies to employers with ____ or more employees.
Associated Answers
1 7
2 11
3 12
4 15
```
4 15
289
The ____________ prohibits firing an employee whose pay is garnished for payment of a single debt.
Associated Answers
1 Contract Work Hours and Safety Standards Act
2 Wage Garnishment Law
3 Walsh-Healey Public Contracts Act
4 Service Contract Act
2 Wage Garnishment Law
290
Is it prohibited for a 16 year old to do roofing, excavation, or demolition work?
Associated Answers
1 Yes
2 No
1 Yes
291
```
) The ____________ requires payment of prevailing wage rates and fringe benefits on federally financed or federally assisted CONSTRUCTION.
Associated Answers
1 Fair Labor Standards Act
2 Walsh Healy Contracts Act
3 Davis-Bacon Act
4 Service Contract Act
```
3 Davis-Bacon Act
