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Practice Questions for the Florida
Contractors Manual -QUESTIONS WITH
ANSWERS
A properly registered fictitious name is valid for ________________ A. 1 year B. 2 years C. 3 years D. 5 years - CORRECT ANSWERS โโ D. 5 years 1- Which of the following would have jurisdiction over dredging or excavation of navigable waters and wetlands? A. U.S. Dept. of the Interior B. Florida Dept. of State C. Florida Dept.of Transportation D. U.S Army Corps of Engineers - CORRECT ANSWERS โโ D. U.S Army Corps of Engineers 1- The name of the form which is used to apply for sales tax is?
A. W
B. DR-
C. S
D. W4 - CORRECT ANSWERS โโ B. DR-
Which of the following is NOT true about a fictitious name registration? A. Valid for 5 years. B. The fictitious name must be advertised at least one time. C. If a change of ownership occurs, the owner(s) of record must file a cancellation and registration within 45 days of filing, D. Fictitious name registration must be renewed between July 1 and December 31 in the expiration year. - CORRECT ANSWERS โโ C. If a change of ownership occurs, the owner(s) of record must file a cancellation and registration within 45 days of filing, 1- Three partners, Noah, Evan & Steven form a partnership. Noah invests $30,000; Steven invests $20,000 and Evan invests $15,000. In addition, Noah performs specific management functions for which he is paid $5, from the partnership proceeds. If the partnership earns $244,000, how much will Noah receive? A. Less than $70,
A Partnership will be dissolved if which of the following applies? A. UnlawfuI Activity B. Failing to have a primary qualifying agent C. A court decree under the partnership act D. A and C 1-29 - CORRECT ANSWERS โโ D. A and C 1- 1- Which of the following is NOT characteristic about a General and Limited Partnership? A. The limited partnership has two types of partners; a partnership only one. B. The general partners of a limited partnership have limited personal liability; the partners of a partnership do not. C. In a limited partnership the limited partners have no management responsibility. D. The general partner has joint and several liability; the limited partner does not - CORRECT ANSWERS โโ C. In a limited partnership the limited partners have no management responsibility. 1- Which of the following is NOT true about a sole proprietor, a/k/a DBA, operating a business in his own name?
A. A business fictitious name filing is necessary. B. A business Tax Identification Number filing is necessary. C. Neither A nor B D. Both A and B - CORRECT ANSWERS โโ D. Both A and B 1- Which of the following is an advantage of owning a corporation? A. Continuity of existence. B. Lack of centralized control. C. sharing of ideas and management responsibility. D. Easier to create. - CORRECT ANSWERS โโ A. Continuity of existence. 1- Unlicensed practice of a profession is punishable by an administrative penalty not to exceed _______. A. $ B. $1, C. $5, D. $12,500 - CORRECT ANSWERS โโ C. $5, 455.228(1)
Failure of a licensee to renew before a license expires shall cause the license to become _________. a. delinquent b. inactive c. void d. inactive until payment of a late fee and completion an additional 4 hours of continuing education - CORRECT ANSWERS โโ a. delinquent 455.271(5) The $5.00 fee imposed upon initial licensure and subsequent renewals is used ____________________. a. to cover administrative costs b. to offset inflation and increased salaries c. to combat unlicensed activity d. as a fee to help fund investigative background checks - CORRECT ANSWERS โโ c. to combat unlicensed activity
An active certified residential contractor is eligible to take the general contactors' examination if he possesses a minimum of years of proven experience in the classification in which he is certified. a. 1
b. 2 c. 3 d. 4 - CORRECT ANSWERS โโ d. 4
If an incomplete contract exists at the time of death of a contractor, the contract may be completed by any person, though not certified or registered, with the board's approval. That person must notify the board within ____ days after the death of the contractor, of his/her name and address. a. 15 days b. 30 days c. 45 days d. 60 days - CORRECT ANSWERS โโ b. 30 days
An active certified air-conditioning Class B contractor is eligible to take the air-conditioning Class A contactors' examination if he possesses a minimum of years of proven experience in the classification in which he is certified. a. 1 b. 2 c. 3 d. 4 - CORRECT ANSWERS โโ a. 1
What is the maximum damages in which as consumer (non-employee) is entitled due to the negligence of a non-licensed contractor: a. 2 times damages b. 2 times damages + legal fees c. 3 times damages d. 3 times damages + legal fees - CORRECT ANSWERS โโ b. 2 times damages + legal fees 2- A Contractor wants to borrow 50,000 for 1 year and the Bank will provide the funding as a Discounted Loan at 2%. What is the amount the Contract receives at loan closing? 12. A $50,000, discount due when paid 13. B $48,000, discounted immediately 14 C $52,000, full amount due at maturity 15. D $50,000, contract pays for $2,000 at closing - CORRECT ANSWERS โโ B $48,000, discounted immediately 14 3- Under the completed contract method, the contractor may realize the profit: a. When the bid is accepted by the owner
b. When the contract is 50% complete c. When the project is nearly complete d. When the owner signs off on the final release - CORRECT ANSWERS โโ c. When the project is nearly complete 3- Records of employment taxes should be kept for IRS review for at least. a. 4 years b. 3 years c. 7 years d. They do not need to be kept - CORRECT ANSWERS โโ a. 4 years 2012 -Circular E-Page 4 Which of the following is the type of contract which provides payments to the contractor on the basis of direct labor hours at fixed hourly rates and which may include the cost of materials or other specified costs? A. Unit price B. Cost plus C. Time and material D. Fixed price - CORRECT ANSWERS โโ C. Time and material Pg. 3-
D. August 10th - CORRECT ANSWERS โโ D. August 10th Circular-E Pg. 7 What is the FUTA tax rate for a Florida Company claiming full credit for the Florida Unemployment Compensation Tax? a. 8% b. 08 c. 6% d. 08% - CORRECT ANSWERS โโ c. 6% 2012 Circular E- Which of the following is NOT a correct expression of the relationship between owner's equity, totalassets, and total liabilities? A Assets = Liabilities + Net Worth B. Net Worth= Assets -Liabilities C. Owner's Equity + Liabilities = Assets D. Liabilities -Net Worth = Assets - CORRECT ANSWERS โโ C. Owner's Equity + Liabilities = Assets What is the "look back" period for determining the deposit schedule for taxes? A Last 1 quarter
B. Last 2 quarters C. Last 3 quarters D. Last 4 quarters - CORRECT ANSWERS โโ Which of the following insurance policies would protect a company against employee embezzlement? a. Blanket crime policy b. Fidelity bond c. Comprehensive theft d. Comprehensive liability - CORRECT ANSWERS โโ b. Fidelity bond 4- What type of extended insurance can be purchased with the Builder's risk? A Materials in transit or at temporary storage facility B Subcontractors on a job site C Materials while in transit D Employees of subcontractor - CORRECT ANSWERS โโ A Materials in transit or at temporary storage facility 4- A normally purchased Builder's Risk policy covers all but which of the following?
D. The owner must not interfere with the contractor's schedule - CORRECT ANSWERS โโ D. The owner must not interfere with the contractor's schedule 4- Which of the following financial statements would most likely be necessary if you were certifying the financial condition of your company for 3rd party investors? A. Cash B. Reviewed C. Compiled D. Audited - CORRECT ANSWERS โโ D. Audited 4- What is the maximum bond amount for a SBA guaranty program? A. $2,000, B. $1,500, C. $1,250, D. $1,000,000 - CORRECT ANSWERS โโ A. $2,000, 4- Under a performance bond on a subcontract, any suit must be instituted within _____ year(s) of the date of substantial completion.
A. 1
B. 2
C. 3
D. 4 - CORRECT ANSWERS โโ B. 2
You have purchased $120,000 worth of builder's risk (property) insurance on a building worth $200,000 with an 80% co-insurance clause. A fire loss causes $20,000. Disregarding any deductible, what amount will the insurance company pay? A. $20, B. $15, C. $12, D. $19,000 - CORRECT ANSWERS โโ B. $15, 4- $15,000 -Percentage Insured= $120,000/200,000 = 60.00% Payment -60/80 x $20,000 = $15,000. Your company is assessing its bonding capacity. You have $100,000 Cash in the bank, $32,000 in Accounts Receivable and $450,000 in Accrued Earned Income Receivable. Your bookkeeper states you also have $450,000 in Current Liabilities. What would be your likely maximum bond limit?
C. $
D. $100 - CORRECT ANSWERS โโ A $
According to the American's with Disabilities Act, pre-employment medical examinations are: A. mandatory B. Unlimited. C. Required. D. Prohibited - CORRECT ANSWERS โโ A. mandatory 5- According to the Federal Rehabilitation Act of 1973, an aggrieved party must file a complaint of disability discrimination with the Office of Federal Contract Compliance Programs within _____days of the alleged discriminatory act. A. 7 B. 300 C. 90 D. 30 - CORRECT ANSWERS โโ B. 300 5-
A non-exempt hourly employee works 50 hours in a week and is given a non-discretionary bonus of$100.His regular hourly rate is $10.00. What is his calculated regular rate for the week? A. $7. B. $9. C. $10. D. $12.00 - CORRECT ANSWERS โโ D. $12. 5- [(50 x $10) +100] / 50 = $12.00 CM (5-21) Which of the following IS required to be included in the regular rate of pay when calculating overtime in accordance with the Fair Labor Standards Act? A. A bonus that is defined as a discretionary bonus. B. A Christmas bonus given on a regular basis. C. A bonus that is paid as part of an employment agreement. D. A gift bonus. - CORRECT ANSWERS โโ C. A bonus that is paid as part of an employment agreement. 5- What is the maximum amount that can be garnished from an employee's wages according to the Consumer Credit Protection Act?
