Law & Business 2 Flashcards
If you find that work done by a previous contractor is in violation of the local building code, what should you do?
a. Repair the violation immediately.
b. Report the violation to the owner with an estimate for the needed repairs.
c. Report the violation directly to the building department.
d. The contractor may ignore the violation.
b. Report the violation to the owner with an estimate for the needed repairs.
If you are required to report employment taxes or give tax statements, the _____ must obtain a federal Employer Identification Number.
a. employee and employer
b. employee
c. employer
d. bookkeeper
c. employer
When preparing a bid, you should:
a. evaluate the effect of unexpected delays on costs
b. put as little in writing as possible
c. schedule the job to slightly overload your capacity
d. none of the above
a. evaluate the effect of unexpected delays on costs
For which of the following injuries does Cal/OSHA require employers to make and keep records?
a. Worker is knocked unconscious but returns to work after resting for one hour.
b. Worker suffers a burn that requires a one-time visit to the doctor.
c. Worker develops a chronic allergy after repeated exposure to fiberglass insulation.
d. All of the above.
c. Worker develops a chronic allergy after repeated exposure to fiberglass insulation.
An income statement shows:
a. assets and liabilities over an extended period of time
b. revenues and losses at a certain point in time
c. assets and liabilities at a certain point in time
d. revenues and expenses over an extended period of time
d. revenues and expenses over an extended period of time
Except in an emergency, you must notify the regional Underground Service Alert Notification Center no less than _____ nor more than _____ starting excavation work.
a. 1 day before … 14 days before
b. 2 days before … 14 days after
c. 2 days before … 14 days before
d. 3 days before … 28 days after
c. 2 days before … 14 days before
If a subcontractor were to serve the owner with a stop notice, the most likely reason would be to:
a. inform the owner that the subcontractor has not been paid by the prime, and the owner must set aside sufficient funds to pay the subcontractor’s bill
b. inform the owner that the owner’s property will be attached if payment is not made
c. notify the owner that a lien will be filed against the property if the subcontractor is not paid
d. notify the owner that the subcontractor has completed his portion of the work
a. inform the owner that the subcontractor has not been paid by the prime, and the owner must set aside sufficient funds to pay the subcontractor’s bill
“Contractors are required by law to be licensed and regulated by the Contractors’ State License Board. Any questions concerning a contractor may be referred to the Registrar, Contractors’ State License Board, P.O. Box 26000, Sacramento, California, 95826.” This statement must be on:
a. all prime contracts
b. all prime contracts and subcontracts
c. all prime contracts, subcontracts, and advertising
d. only contracts for jobs over $500
a. all prime contracts
A contractor bids on a home improvement project and earns the bid. Later, he decides not to take the job. Which bond would protect the home owner?
a. bid bond
b. performance bond
c. contract bond
d. completion bond
a. bid bond
How many days of inactivity must pass before a notice of cessation may be recorded?
a. 10 days
b. 30 days
c. 60 days
d. 90 days
b. 30 days
A(n) _____ is used to analyze the income and outflow of cash during a period of time.
a. balance sheet
b. income statement
c. profit plan
d. cash flow statement
d. cash flow statement
To whom does an employer pay FUTA tax?
a. Employment Development Department
b. Internal Revenue Service
c. U.S. Department of Labor
d. State Franchise Tax Board
b. Internal Revenue Service
Excavators must clearly mark the boundaries of a work area, usually with _____ paint.
a. red
b. yellow
c. brown
d. white
d. white
An employer who receives a citation for a serious violation of Cal/OSHA regulations can be assessed a penalty of up to _____ for each violation.
a. $1,000
b. $5,000
c. $10,000
d. $25,000
d. $25,000
How long should a contractor keep employee records?
a. 1 year
b. 2 years
c. 3 years
d. for as long as the employee is employed
c. 3 years
What is the best way to determine if your company is profitable?
a. Ask the crew supervisors.
b. Compare the size of inventory with last year’s.
c. Examine the income and expense statement.
d. Examine the balance sheet.
c. Examine the income and expense statement.
Unsafe or faulty equipment is found on a job site. What should be done?
a. The contractor should call Cal/OSHA.
b. It is the contractor’s responsibility to correct the problem.
c. It is the property owner’s responsibility to correct the problem.
d. It is the employees’ responsibility to correct the problem.
b. It is the contractor’s responsibility to correct the problem.
How often should a job supervisor or responsible managing employee visit the job site?
a. once a day
b. once a week
c. once a month
d. whenever he is near the job site
a. once a day
When calculating unemployment and disability insurance taxes, an employer would not include:
a. bonuses
b. severance pay
c. wages
d. overtime pay
b. severance pay
Which of the following is not covered by standard contractor’s insurance policies?
a. employees’ tools
b. contractor’s tools
c. damage from fire, storm, theft, and vandalism
d. job materials
a. employees’ tools
An employer must file federal Form 1099-MISC to report payments of _____ or more per calendar year to persons not treated as employees (e.g., independent contractors) for services performed for the business.
a. $200
b. $300
c. $450
d. $600
d. $600
There is a near-miss safety situation on a job. What steps should the employer take?
a. Report the near-miss to DOSH.
b. Report the near-miss to the workers’ compensation insurance carrier.
c. The unsafe situation must be investigated, and the investigation must include a written report.
d. The unsafe situation must be investigated, but a written report is not required.
c. The unsafe situation must be investigated, and the investigation must include a written report.
Suppose you include depreciation on your income statement your first year in business, but you do not include it in the second year. How will this affect your net income being reported?
a. It is illegal to omit depreciation.
b. Your net income will be the same for both years.
c. Your net income will be less than it should be in the second year.
d. Your net income will be greater than it should be in the second year.
d. Your net income will be greater than it should be in the second year.
After the building plans are approved, what is the next step?
a. review the plans for errors or corrections
b. hire employees
c. schedule the job
d. order materials
a. review the plans for errors or corrections