Vocabulary | Midterm

Question 1

Prime Contractor

Answer 1

A contractor who enters into a contract with the property owner, his/her agent or another contractor

Question 2

Subcontractor

Answer 2

A contractor who gets into a contract with another contractor

Question 3

Contract

Answer 3

An agreement, written or verbal, between two or more persons, which consists of a promise or series of promises

Question 4

Mechanics Lien

Answer 4

Informs the home owner about the rights and responsibilities of a contractor

Question 5

Home Improvement Contract

Answer 5

Agreement between a contractor and owner or tenant for the purpose of home improvement work

Question 6

Small Claims Court

Answer 6

Dispute resolution where the amount must be under $10,000 unless you are an LLC or a Corporation

Question 7

Arbitration

Answer 7

A dispute resolution that must be agreed to by both parties. The decision made is legally binding

Question 8

Persons

Answer 8

human beings or business enterprises

Question 9

Mechanic

Answer 9

any person who is skilled in the practical use of tools

Question 10

Lien

Answer 10

binding legal claim placed on property

Question 11

Mechanics Lien

Answer 11

one particular kind of lien placed on real (as opposed to personal) property - primarily on the structure and secondarily on the land on which the structure is located

Question 12

Claimant

Answer 12

the person making the claim (the person filing the lien)

Question 13

Conditional waiver and release

Answer 13

Use if you are paid in full and do not have money in hand - becomes effective when the check clears

Question 14

Unconditional Waiver and Release

Answer 14

Use only if you have money in hand and are paid in full

Question 15

Notice of Non-Responsibility

Answer 15

Written statement signed and verified by the owner or owners agent informing potential claimants that the work was not authorized by the owner and the owner will not be responsible for the payment

Question 16

Notice of Completion

Answer 16

an official declaration that work on a project is finished

Question 17

Notice of Cessation

Answer 17

Official declaration that work has stopped

Question 18

Lis Pendens

Answer 18

Dispute pending

Question 19

Perfecting the Lien

Answer 19

A claimant who is still not paid after recording a mechanics lien must then go to court and file a lawsuit

Question 20

Strike

Answer 20

employees refuse to work until an acceptable agreement is reached

Question 21

Lockout

Answer 21

employer prohibits the employees from entering the workplace until an agreement is reached

Question 22

Collective bargaining

Answer 22

an agreement between a union and an employer

Question 23

FIT

Answer 23

Federal Income Tax - employer is responsible for withholding and payment

Question 24

FUTA

Answer 24

Federal Unemployment Tax - employer is responsible to pay

Question 25

FICA

Answer 25

Social Security - employer is responsible for withholding and payment

Question 26

EDD

Answer 26

Employment Development Department - employer is required to file quarterly state tax returns with them

Question 27

SUI

Answer 27

State Unemployment Insurance

Question 28

State Board of Equalization

Answer 28

Quarterly sales and use tax to be filed with them

Question 29

Cal OSHA

Answer 29

The CA Occupational Safety and Health Act

Question 30

Division of Occupational Safety & Health

Answer 30

enforces Cal?OSHA regulations

Question 31

Occupational Safety and Health Standards Board

Answer 31

adopts, amends and repeals safety standards

Question 32

Occupational Safety and Health Appeals Board

Answer 32

conducts hearings for violations by DOSH

Question 33

Cal/OSHA Consultation

Answer 33

free on site consultation services to employees and employers

Question 34

SDS

Answer 34

Safety Data Sheets - the employer must make them available to all employees who may come into contact with hazardous materials

Question 35

Balance Sheet

Answer 35

A statement which shows a business' financial position at a particular point in time

Question 36

Financial Management

Answer 36

knowledge of how to properly manage finances

Question 37

Owner's equity

Answer 37

Total assets minus total liabilities

Question 38

Retainage

Answer 38

money held by the owner or agency until the entire job is complete and the period for filing mechanics liens and stop notices has expired

Question 39

Solvency

Answer 39

Ability to turn assets into cash

Question 40

Income Statement

Answer 40

used to summarize the operations of a business over a period of time

Question 41

Accounts Payable

Answer 41

money owed by the company

Question 42

Accounts Receivable

Answer 42

money owed to the company

Question 43

Assets

Answer 43

Anything that has value to a company either immediately or in the future

Question 44

Liabilities

Answer 44

Anything that detracts value from a company such as debt

Question 45

Cash Flow

Answer 45

a company's ability to pay current liabilities such as payroll and material services

Question 46

Direct Costs

Answer 46

costs directly associated with a particular job such as labor and materials

Question 47

Inventory

Answer 47

assets that can be converted into cash relatively quickly. Typically includes material used for installation or maintenance jobs

Question 48

Overhead expenses

Answer 48

fixed costs that a business occurs on a regular basis regardless of the monthly income being produced

Question 49

Profit

Answer 49

money used for operating capital of a business to pay off debt, expand, pay bonuses, etc

Question 50

Budget

Answer 50

projects what revenue will be generated and what expenses will be incurred over a specific period of time

Question 51

Capital Budget

Answer 51

developed to allocate money for purchases of assets, such as vehicles, and equipment

Question 52

Cash Flow Budget

Answer 52

project cash balances over a specific period

Question 53

Depreciation

Answer 53

a tax allowance for the decreased value of equipment and vehicles

Question 54

Gross Margin

Answer 54

is the amount of money that is left after direct costs are paid

Question 55

Net Profit

Answer 55

the amount of money that remains from revenues when all costs (direct, indirect, and overhead) have been paid and before taxes are paid

Question 56

Operating Budget

Answer 56

developed for the overall company and further delineated into division budgets

Question 57

Working Capital

Answer 57

to support the operational expenses associated with the projected growth in revenue

Question 58

Forecasting

Answer 58

a process that determines the working capital, asset, and personnel needs for projected revenues

Question 59

Strategic plan

Answer 59

specify goals and strategies to ache them within a specific period of time, generally 3 - 5 years