Nascla Business Law, Project Management Flashcards
The employer should get I-9 forms from employees within how many days of hire?
3 – Three days
Business Law and Project Management 10th Edition Page 11-5
Your Comprehensive General Liability insurance protects you from which of the below?
1 – Persons not employed by you
2 – Damage to property other than your company
4 – Both 1 and 2
Business Law and Project Management 10th Edition Page 4-4
Which of the below would pay state tax on income generated?
4 – Corporations
Business Law and Project Management 10th Edition Page 2-3
Which of the below would not be included in a contract offer?
4 – Sub-contractors
Business Law and Project Management 10th Edition Page 8-2
A company must have how many employees before workers’ compensation is required?
3 – Three
Business Law and Project Management 10th Edition Page 11-12
Employers must pay Federal Unemployment Tax on employees how often?
3 – Quarterly
Business Law and Project Management 10th Edition Page 15-5
John Smith, an employee of your firm, is paid on a two week pay period, has worked the following
schedule:
A) Week 1 – Monday - Friday (8 hours each day) and 4 hours on Saturday
B) Week 2 – Monday - Wednesday (8 hours each day) Thursday worked half a day then went
home with 4 hrs sick pay and Friday is a paid holiday.
What is John’s gross pay for this pay period if he is making $18.40 per hour?
2 – $1,582.40
Business Law and Project Management 10th Edition – Calculation
Where will John’s wages fall on the company’s income statement?
1 – Direct Cost
Business Law and Project Management 10th Edition Page 14-5
If you, an owner, want to be guaranteed that your project will be completed according to the plans, specifications, terms and conditions of the contract. What kind of bond would you need?
3 – Performance Bond
Business Law and Project Management 10th Edition Page 4-7
Which of the statements below is correct?
1 – Employees should receive a w-2 before January 31 from their employer
2 – Sub-contractors should receive a 1099 before January 31 from the general
contractor
3 – Both 1 and 2 are true
Business Law and Project Management 10th Edition Page 15-4 and 15-5
What is the disadvantage of the cash method accounting versus the accrual method of accounting?
3 – Cash method does not match revenue with expenses incurred
Business Law and Project Management 10th Edition Page 14-8
If Federal Unemployment tax wage period ends on Saturday June 30th, when is your tax deposit to the government due?
2 – July 31st
Business Law and Project Management 10th Edition Page 15-5
What is the definition of Negotiation?
1 – Diplomatic bargaining
Business Law and Project Management 10th Edition Page 8-1
Where are the Material Safety Data Sheets (MSDS) originated from?
1 – Provided by the manufacturer of the chemical
Business Law and Project Management 10th Edition Page 12-6
The contract bid documents include:
1 – Invitation to bid
2 – Bid Instructions
3 – Bid forms
4 – All of the above
Business Law and Project Management 10th Edition Page 7-1
Commercial General Liability Insurance (CGL) covers:
1 – Bodily injury to non-employees
2 – Damage to property not belonging to business
3 – Personal injury, slander, damage to reputation
4 – All of the above
Business Law and Project Management 10th Edition Page 4-4
If you accumulate a tax liability of $100,000 or more, you must make your deposit by:
1 – Next banking day
Business Law and Project Management 10th Edition Page 15-4
The maximum OSHA fine is:
4- $ 156,259
Business Law and Project Management 10th Edition Page 12-8
How can you become more competitive in business?
2- Improve safety
Business Law and Project Management 10th Edition Page 12-1
What is more likely to be included in company or general overhead?
2- Insurance
Business Law and Project Management 7th Edition Page 7-7
What is the best method to accurately estimate costs of labor for a job?
2- Job cost history
Business Law and Project Management 10th Edition Page 7-4
Which of the following is not an advantage of a sole proprietorship?
3- Unlimited personal liability
Business Law and Project Management 10th Edition Page 2-1
One of the main reasons that a construction contract could be voided or terminated is:
A material breach occurs when a party refuses to perform the contract
Business Law and Project Management 10th Edition Page 8-4
Which of the following is considered to be part of company overhead?
2 – Accounting fees
3 – Office rent
4 – Both 2 and 3
Business Law and Project Management 10th Edition Page 7-6
When an employee is voluntary or involuntarily terminated, when shall their wages be paid in full?
1- Within 48 hours or next regular payday
Business Law and Project Management 10th Edition Page 11-8
LLC corporations are like an S corporation; how are federal income taxes are paid?
1- It is distributed to members as ordinary income
Business Law and Project Management 9th Edition Page 2-4
What is a bond?
4 – A three-party contract between the surety, contractor and owner
Business Law and Project Management 10th Edition Page 4-7
How long must OSHA records be kept by an employer?
3 – 5 years
Business Law and Project Management 10th Edition Page 12-4
Who is responsible for paying the Federal Unemployment Tax?
4 – Tax is paid by employer only at a rate of 6.2 percent on first $7,000 paid to
employee
Business Law and Project Management 10th Edition Page 15-5
What is the terminology used for money withheld from monthly payments to a general contractor or subcontractor until after completion of a project?
1- Retainage
Business Law and Project Management 10th Edition Page 8-3
The Fair Labor Standards Act (FLSA) applies to employers who have ____or more employees.
1-1
Business Law and Project Management 10th Edition Page 11-4
The Fair Labor Standards Act (FLSA) provides that a federal minimum wage of not less than $7.25 per hour be paid. What group of people can this minimum be paid less than the federal minimum?
2- Minors under the age of 20
Business Law and Project Management 10th Edition Page 11-4
Employers are required by law to furnish 2 (two) copies of form W-2 to each employee from which taxes have been withheld from the previous year before:
4 - January 31
Business Law and Project Management 10th Edition Page 11-4
The income statement is sometimes called:
3 - Profit and loss statement
Business Law and Project Management 10th Edition Page 15-4
Liabilities are all debt and obligations owed by the business. Current liabilities are debts that will occur and must be paid within ____year.
1 - 1
Business Law and Project Management 10th Edition Page 14-3
Long term liabilities are debt obligations that extend beyond ___year.
1 - 1
Business Law and Project Management 10th Edition Page 14-3
An 11 (eleven) month note due during a fiscal year is called:
4 - Current liability
Business Law and Project Management 10th Edition Page 14-3
Determine the debt ratio if company assets are $100,000 and liabilities are $50,000.
3 - .50
Business Law and Project Management 10th Edition Page 14-7
When a General Contractor contracts with a sub-contractor who does not have workers compensation, they:
4 - Is completely responsible for workers compensation
Business Law and Project Management 10th Edition Page 4-5
Employers must pay matching funds for Social Security tax withheld from the employee’s check which is 6.2 percent up to $106,800 of gross pay. Also, the employer must pay Medicare tax at 1.45 percent, what is the gross amount for Medicare tax?
4 - Pay on all gross wages - there is no maximum
Business Law and Project Management 10th Edition Page 14-16 and 15-4
The General Contractor pays a brick mason $1,500 for work he performed on a building. Since this amount was above the $600.00 allowed by law, the Contractor must give him which form:
3 - Form 1099
Business Law and Project Management 10th Edition Page 15-5
As a General Contractor you have a project superintendent that is paid $25.00 per hour and has worked 60 hours in a week. He is covered under the Fair Labor Standards Act (FLSA) as a nonexempt employee. He has worked 30 % on Project A and 50% on Project B. The remainder of his time was spent in the main office. How much of his salary should be applied to direct cost of supervision for Project B?
3 - $875.00
Business Law and Project Management 10th Edition Page 11-4 Calculation
Which of the following would not be a fixed asset?
4 - Stocks and bonds
Business Law and Project Management 10th Edition Page 14-3
When choosing a CPA to do your accounting work, which of the below should be considered?
1 - A CPA that uses generally accepted accounting practices
Business Law and Project Management 10th Edition Page 14-1
If the contractor does not give the owner a written or verbal warranty, then the owner will be left with this type of warranty.
2 - Implied warranty
Business Law and Project Management 3rd Edition Page 9-17
The time located on a CPM (Critical Path Method) chart for a specific task to the task is known as:
2 – Float time
Business Law and Project Management 10th Edition Page 9-2
The late start time minus the early start time on a CPM (Critical Path Method) chart is called:
3 - Total float
Business Law and Project Management 10th Edition Page 9-2
Which of the following best describes working capital?
2 - Current assets minus current liabilities
Business Law and Project Management 10th Edition Page 14-3
Which of the following scheduling methods would be the easiest to read?
1 – Calendar method
Business Law and Project Management 10th Edition Page 9-3
Materials on hand that are stored on a construction project would be listed on the balance sheet under which of the below?
3 - Current asset
Business Law and Project Management 10th Edition Page 14-3
A contract must be written if it pertains to:
2 - Real estate or land
Business Law and Project Management 10th Edition Page 8-9
Which of the below would not show up on a balance sheet?
1 - Revenue
Business Law and Project Management 10th Edition Page 14-3
You have an office trailer on a construction project that has been used on multiple projects, which of the below would it be listed on?
1 – Company overhead
Business Law and Project Management 10th Edition Page 7-6
An employee is injured covered under workman’s compensation, which of the below injury would amount to the longest 2/3 weekly compensation for the employee?
2 - Loss of an arm
Business Law and Project Management 3rd Edition Page 7-6
When you have a broken line on a CPM (Critical Path Method) schedule between two tasks, this broken line represents _____time between the two activities.
1 - Slack or float
Business Law and Project Management 10th Edition Page 9-5
A company has current assets of $250,000 and current liabilities of $ 180,000. Their fixed assets
are $ 1,500,000 and long-term debt is $750,000. Their bonding capacity is 10 times their working
capital, what is their bonding capacity.
1 – $700,000
Business Law and Project Management 10th Edition Page 14-3
Remember that working capital is always the current assets versus current liabilities, fixed assets or long-term liabilities do not matter. The bonding capacity is always 10 times your working capital
What does the letter “i” on a CPM (Critical Path Method) Schedule indicate?
1 - Start of an activity
Business Law and Project Management 10th Edition Page 9-5
What does the letter “j” on a CPM (Critical Path Method) Schedule indicate?
2 - End of an activity
Business Law and Project Management 10th Edition Page 9-5
The North Carolina Employment Security Law says that all contractors are required to pay unemployment tax if:
1 – Have one or more employees for 20 weeks during a calendar year
2 – Pay $1,500 in wages in any calendar quarter during a calendar year
3 - Both 1 and 2
Business Law and Project Management 10th Edition Page 4-6, 11-13 and 15-5
What is the normal warranty period for a construction project?
3 – 12 months
Business Law and Project Management 10th Edition Page 4-7
What would be the total cost of workman’s compensation insurance for a company if the main
office salary was at $125,000 at $1.20 per hundred and the field salaries were $250,000 at
$8.50 per hundred?
1 - $22,750
Business Law and Project Management 10th Edition Page 4-5 Calculation
Divide office salary by 100 = 1250 x $1.20 = $ 1,500.00
Divide field salary by 100 = 2500 x $8.50 = $21,250.00
$22,750.00
