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FL Business and Finance Practice Test
The ______________________ is an estimating method that is NOT recommended for lump sum contracts. A. approximate estimated method B. detailed survey method C. square footage method D. unit price method - โ โ Answer: C. square footage method CM 10-
If the Contractor does not pay the Subcontractor through no fault of the Subcontractor, within seven days of the time payment should be made as provided on their Agreement the Subcontractor may upon
additional days written notice to the Contractor stop the Work of the Subcontract.
A. 14
B. 7
C. 5
D. 3 - โ โ Answer: B. 7 AIA 401.4.
Contractor's claims for the cost of services or materials provided due to the Subcontractor"s failure to execute the Work shall require ___________ days written notice prior to the Contra ctor's providing services or materials. A. 2 B. 3 C. 5 D. 7 - โ โ Answer: D. 7 401.3.4.
The Florida's Workers'Copmpensation Act is applicable to an employer in the construction industry who employes ______________ or more full or part time employees. A. 1 B. 2 C. 3 D. 4 - โ โ Answer: A. 1 6- 5 and 5-
Which of the following is not a depreciation method? A. declining balanc e depreciation B accumulated cost depreciation C. sum of the years digits depreciation D. straight line depreciation. - โ โ Answer: B. accumulated cost depreciation BGA 162 - its an accounting method not a depreciation method
Given: A contractor hires a day laborer at a rate of $35.00 for one day's work. The contractor uses the laborer for six days in one work week. The laborer average 8 1/2 hours of work per day. The laborer is entitled to ____________________________. A. A gross pay of 199.45 B. A gross pay of 210.00 C. A gross pay of 232.66 D. A gross pay of 290.97 - โ โ Answer: C. A gross pay of 232.66 Formula: Pay for 6 days = 210 6 days x 8.5 hours = 51 hours 210/51= 4.12 per hour - 40 hrs at 4.12 = 164.80 4.12 x 1.5 = 6.18 6.18 x11 hours OT = 67.98. 164.80+67.98 =
All the following are examples of types of offers in construction contracts except _________________________. A. bids B. purchase orders C. proposals D. negotiations - โ โ Answer: D. Negotiations CM 8.
For the purpose of certification, a passing grade shall be valid only for a period of ________ from the date the list of successful candidates is approved by the board.
A. 60 days
B. 1 year
C. 2 years
b. Retainage.
c. Deferred income.
d. Backup withholding. - โ โ Answer B. Retainage Tab page 23
Employers are required by regulation to keep so called "hard records" such as payroll, employment contracts or agreements, and sales and purchase records for at least _______________.
A. 2
B. 3
C. 4
D. 5 - โ โ Answer: B. 3 - CM 5-30 INDEX/WAGES/RECORD KEEPING
Any violation of rules regarding reporting accidents to the Division of Workers' Compensation can subject the employer to a penalty of ________________.
A. $1,
B. $2,
C. $
D. $5,000 - โ โ Answer: C. 500 CM 6-12 INDEX/WC/RECORD KEEPING
The type of construction contract in which the contractor takes all the risk of cost overruns is:
A. cost plus fixed fee contract
B. cost plus percentage fee contract
C. unit price contract
D. lump sum contract - โ โ Answer: D. lump sum contract (Fix Price) CM 3-78 INDEX/CONTRACTS/TYPES OF
All of the following are ways in which bid shopping may be prevented except ________________.
A. requiring bidders to list subcontractors
B. placing a time limit on bid acceptance
C. using bid depositories
D. including special provisions in the bid - โ โ Answer: B. placing a time limit on bid acceptance?
OSHA records must be maintained by which type of employer?
A. individuals no employees
D. wages paid to a child under the age of 21 employed by parent - โ โ Answer: D. wages paid to a child under the age of 21 employed by parent CM 3-156 INDEX/CIRC E FUTA
An employer who willfully misrepresents an employee as an independent contractor for the purpose of avoiding Worker's Compensation premiums _______________.
A. shall be fined 10% of the bid
B. may be assessed a penalty of up to $5,000.
C. shall be assessed a penalty of not less than $5,000.
D. may be assessed triple premiums and a fine of $1,000.00 - โ โ Answer: B. may be assessed a penalty of up to $5,000.00 CM 6?
Within how many days of the date the claim of lien is recorded, must a contractor serve a copy of the claim of lien on the owner and lender (if any)?
A. 15
B. 30
C. 60
D. 90 - โ โ Answer: A. 15 CM 9-30 INDEX/LIEN/HOW TO SERVE
According to Contractors Manual, CSI Master format divides the specifications into how many specific divisions? - โ โ Answer: 50 CM 10-9 INDEX/CSI MASTERFORMAT
First aid cases, according to the Florida Worker's Compensation Law, requiring treatment on site
that do not require medical treatment for which charges will be incurred, and do not disable the
employee for more than , do not need to be reported.
A. 3 hours
B. 8 hours
C. 5 days
D. 7 days - โ โ Answer: 3 hours - ???
What is a reserve of bad debt?
a. A reduction in your current assets
b. A general ledger entry that reflects a budgeted reserve for bad debts
c. A loss of cash on hand
d. Both A and B - โ โ ANSWER:
d. Both A and B BGA 68 Index/Bad Debt
What guaranty does a contractor make through the issuance of a surety bond? a. He will complete the project as per the contract documents
b. He will hold the architect harmless for delays
c. Notification of change of affiliation of qualifying agent must be made within 30 days
d. Notification of change of certificate holder or registrant must be made within 45 days - โ โ Answer:
a. Notification of address change must be made within 15 days FALSE 30 days CM 2-159 INDEX/LICENSING/FINANCIAL RESPONSIBILITY
What can the Board do with the $5.00 fee included in the current licensee fee? a. Educate the public regarding unlicensed activity
b. Transfer the funds to the State of Florida's general budget account
c. Subsidize the application fee for applicants from the indigent community
d. Reimburse the public when damaged by unlicensed workers - โ โ Answer:
a. Educate the public regarding unlicensed activity FS455. UNLICENSED ACTIVITIES AND FEES
Where should OSHA records be located when employees are not associated with a fixed establishment? a. At the nearest fixed location
b. At field offices or mobile base operation locations
c. At the corporate office
d. Where the employees report to work each day - โ โ Answer:
b. At field offices or mobile base operation locations CM 7- INDEX/OSHA/LOCATION OF RECORDS
What penalty is imposed for failure or refusal of an employer or carrier to report any form or notice associated with a death as required by Chapter 440, Workers Compensation Laws?
a. Fine not to exceed $
b. Fine not to exceed $
c. Fine not to exceed $
d. Fine not to exceed $500 for the first failure and not to exceed $ for each subsequent failure - โ โ Answer:
c. Fine not to exceed $500 CM 5-54/ 6-165 INDEX/WC/PENALTIES & ACTS/WC ACT
Which of the following is not true regarding posting a Notice of Commencement? a. When a loan exists, it is the contractor's responsibly to post the notice
b. It may be posted no sooner than 90 days prior to the start of work at the site
c. The owner is obligated to post a copy at the site
d. The posted notice always needs to remain on site - โ โ Answer:
a. When a loan exists, it is the contractor's responsibly to post the notice INDEX/LIEN/NOTICE OF COMMENCEMENT/
The owner must prove financial capability no later than ________ days prior to the expiration of the time for withdrawal of bids. A. 3 B. 5 C. D.30 - โ โ Answer: C. 7 - AIA 701.6.
The bonding cost for a class "B" contract of $900,000 will cost ________________. A. $9,000 B. $10,000 C. $12,500 D. $22,500 - โ โ Answer: C. $12,500 CM 4-18 Graduated scale: 1st- 100x25%+ 2, 2nd 400 x15%+ 6,000 3rd 400x 10%=4,000 Total $12,
A project is to be considered abandoned after _________ days if the contractor just terminates the project without notification to the owner and without cause. A. 30 B. 60 C. 45 D. 90 - โ โ Answer D. 90 - CM 2-96 , 489.129.1.j
If, at the end of a quarter, a contractor's total FUTA tax is $150, the contractor _____________________. A. may add the tax to the amount for deposit for the next quarter B. must deposit the tax during the 1st month after the quarter. C. must deposit the tax during the 2nd month after the quarter D. must deposit the tax during the 3rd month after the quarter. - โ โ Answer: A. Add the tax for the next quarter - CM 3-
Which of the following is a first aid treatment not to be recorded on an OSHA # 200 log? A. administering a tetanus immunization B. administering a rabies immunization C. application of bandages or a butterfly dressing in lieu of sutures. D. a minor accident involving a loss of consciousness. - โ โ Answer: A. Administering a tetanus immunization - CM 7-
Which of the following is NOT true about corporations? A. With an "S" corporation there is no corporate tax - you pay taxes individual. B. Closely held corporations operate more informally. C. There is no limit of shareholders for either a C-type or S-type Corpo. D. C-type corpo
have the possibility of double taxation. - โ โ Answer: C There is no limit of shareholders - CM 1-
What is the term for expenses that are actually paid but not recognized as paid until a later period? A. post paid costs B. deferred assets C. accrued expenses D. long-term liabilities - โ โ Answer: B. deferred assets - BGA 242
What is the maximum amount of compensation that a consumer is entitled to if injured on a jobsite due to an unlicensed contractors negligence? A. 2X the amount of damages. B. 2x the amount of damages plus attorney fees. C. 3X the amount of damages D. 3x the amount of damages, plus attorney's fees - โ โ Answer: D. 3x the amount plus attorney fees - CM 2-
When developing a project schedule, which of the following should not influence the development of the project shedule? A. manpower B. equipment schedules C. completion date D. activity durations - โ โ Answer: C Completion date - CM 10-
A contractor must serve a copy fo the claim of lien on the owner and lender (if any) within how many days of the date the claim of lien is recorded? A. 15 B. 30 C. 60 D. 90 - โ โ Answer: A. 15 CM 9-
According to the Statutes of Limitations, how long does a person have to bring action on a wage recovery claim? A. 2 yrs B. 5 yrs C. 7 yrs D. 10 yrs - โ โ Answer: A - 2 years - CM 5-
Categories on the income statement include all the following except ___________________. A. Revenues B. Expenses C. Inventory D. Income - โ โ Answer: C. Inventory - CM 3-
Network analysis consists of many separate but interrelated operations. These are ___________________. A. events B. timetables C. activities D. bar charts - โ โ Answer: C. activities - CM 10-
Which of the following is true regarding a general contractor who is constructing the main sanitary sewer collection system, the storm collection system, or the water distribution system on new site development work, but not including continuation of utility lines? A. the GC may do the work himself. B. the GC must hire a plumbing subcontractor C. the GC must hire a specialty subcontractor D. the GC must hire an underground utility subcontractor. - โ โ Answer: A - the GC may do the work himself - CM 2-8 489.113.3.d.e
Supplementary conditions of the contract documents include which of the following? A. jobsite office requirements B. correction of work C. coordination of work D. shop drawing requirements - โ โ Answer: A. jobsite office requirements - CM 10-12/
A secondary qualifying agent is responsible for ______________________. A. the financial matters of the company B. the supervision of field work at sites where the agent's license was used to obtain the building permit. C. the supervision and financial matters of the company where the agent's license was used to obtain the building permit. D. the supervision of all operations of the business organization and for all field work. - โ โ Answer: B. the supervision of field work where agent's license was used to obtain permit - CM 2- 22,/53 489.
Beneficiaries of a worker killed in a workplace accident are entitled to ______________________. A. 2/3s the employee wages for life with
5% annual cost of living. B. up to $100,000 in death benefits and up to $5,000 in funeral costs. C. a $5,000 death benefit and $500 in funeral costs D. 2/3s the employees wages for 104 weeks plus up to $5,000 in funeral costs. - โ โ Answer: B. up to $100,000 in death benfits and up to $5,000 in funeral costs - CM 6-
Which of the following documents should be submitted to and approved by the contractor prior to commencement of work by a subcontractor on a job? A. affidavit supporting subcontractor's scope of work, performance bond (if required) and insurance certificate. B. performance bond (if required) subcontract agreement and insurance certificate. C. insurance certificate, subcontract agreement and affidavit supporting scope of work. D. subcontract agreement , affidavit supporting subcontrac tor's scope of work and performance bond (if required) - โ โ Answer: B. performance bond, subcontract agreement and insurance certificate - CM 10-
A person may engage in business under a fictitious name by registering the name with the _______________. A. Construction Licensing Board B. Division of Corporations C. Dept of Business and Professional Regulation D. Florida Dept of Sales Tax Division - โ โ Answer: B. Divisions of Corporations - CM 1-
A contractor who receives, as initial payment, money totaling more than 10% of the contract price for any repairs, restoration, improvement, or construction to residential real property must apply for permits within ____ days? A. 7 B. 10 C. 30 D. 45 - โ โ Answer: B. 10 CM 2-90 INDEX/LICENSING/MONEY RECEIVED
employee to pay part of the premium. - โ โ D. require employee to pay part of the premium - CM 6-9 INDEX/WC/INSURANCE
The Florida Unemployment law , states that sole proprietors are ________ A. considered when determining an employers liability B. not considered as eligible for unemployment compensation C. required to have unemployment compensation insurance D. exempt if their gross is $10,000 or more a year. - โ โ Answer: B. not eligible for unemployment compensation
A qualifying agent for a business organization ___________ A. must notify the Construction Licensing board of any change of status within 90 days. B. is not legally qualified to act for the business in all matters connected with contracting. C. must notify the Dept of Business Regulations of any change of status within 90 days D. is legally qualified to act for the business in all matters connected with contracting. - โ โ Answer: D. is legally qualified to act for the business in all matters connected with contracting. - CM 2-22 489.1195.a INDEX/LICENSING/QUALIFIER
What would be the total maximum allowable penalty for an employer who committed a willful or repeated violation of OSHA regulations and failed to comply with OSHA mandated posting requirements? a. $124,
b. $136,
c. $142,
d. $124,942 - โ โ Answer:
b. $136,942 INDEX/ OSHA/PENALTIES - Note question has 2 penalties 124471 plus 12471 = 136942
The department, for the boards under its jurisdiction, shall have the authority to close and terminate deficient license applications files ______ year (s) after the board or the department notifies the applicant of the deficiency. A. 1 B. 2 C. 3 D. 4 - โ โ Answer B. 2 FS455.203.10.a
At least ______________ days before the ned of a licensure cycle, the department shall forward notice of pending cancellation of licensure to a delinquent status licensee at the license's last know address of record or email provided to the department. A. 15 B. 30 C. 60 D. 90 - โ โ Answer: D. 90 - FS455.273.
