100 Practice Questions And Answers For The Florida Contractors Manual With Latest Updates, Exams of Advanced Education

Download 100 Practice Questions And Answers For The Florida Contractors Manual With Latest Updates and more Exams Advanced Education in PDF only on Docsity! 100 Practice Questions And Answers For The Florida Contractors Manual With Latest Updates A properly registered fictitious name is valid for ________________ A. 1 year B. 2 years C. 3 years D. 5 years Correct Answer: D. 5 years 1-15 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 Answer: D. U.S Army Corps of Engineers 1-16 The name of the form which is used to apply for sales tax is? A. W2 B. DR-1 C. S1 D. W4 Correct Answer: B. DR-1 1-21 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 Answer: C. If a change of ownership occurs, the owner(s) of record must file a cancellation and registration within 45 days of filing, 1-15 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 $5,000 from the partnership proceeds. If the partnership earns $244,000, how much will Noah receive? A. Less than $70,000 B. Between $70,000 -$90,000 C. Between $90,000-$110,000 D. More than $110,000 Correct Answer: D. More than $110,000 1-12 If the above partnership were dissolved, showing a net loss of $60,000, how much would Noah owe? A. $60,000 B. $4,666 C. $20,000 D. $0.00 Correct Answer: A. $60,000 1-13 According to the Contractor's Manual, starting capital should be enough to cover living expenses for between which of the following? A. 3 months to a year B. 6 months to a year C. 9 months to a year D. at least a year Correct Answer: A. 3 months to a year 1-17 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 Answer: D. A and C 1-29 1-29 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 Answer: C. In a limited partnership the limited partners have no management responsibility. 1-12 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 Answer: D. Both A and B 1-11 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 Answer: A. Continuity of existence. 489.129(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 Answer: b. 2 times damages + legal fees 2-14 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 Answer: B $48,000, discounted immediately 14 3-74 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 Answer: c. When the project is nearly complete 3-80 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 Answer: 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 Answer: C. Time and material Pg. 3-79 According to the Contractor's Manual in the completed contracts method of accounting, a contract should be considered complete, if it has reached what percentage or more? A. 100% B. 98% C. 97% D. 95% Correct Answer: B. 98% Pg. 3-80 According to the Circular E, which of the following is the form used to claim credit for over payments? A. 940 B. 941 C. 944 D. B or C Correct Answer: D. B or C Circular E, Pg. 26 What is the filing deadline for a payroll tax return for the 2nd quarter for an employer who has deposited all taxes on time? A. July 1st B. July 31st C. August 1st D. August 10th Correct Answer: 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 Answer: c. 6% 2012 Circular E-29 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 Answer: 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 Answer: 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 Answer: b. Fidelity bond 4-8 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 Answer: A Materials in transit or at temporary storage facility 4-7 A normally purchased Builder's Risk policy covers all but which of the following? A. Materials B. Fire and Storm C. Deeds and notes D. Tools and materials Correct Answer: B. Fire and Storm 4-13 A Contractor has been paid $71,837.00 on a $1,400,325.00 contract total cost. Assuming a 10% retainage, what is the percentage of completion of this project? A. 0.57% B. 5.7% C. 0.51% D. 5.1% Correct Answer: B 5.7% Gross Pay= $71,837/.90 = $79,812.00 % of Completion -$79,812/$1,400,325 = 5.70% Which of the following is NOT an example of an exculpatory clause? A. The owner is to indemnify the contractor. B. The contractor is to hold the owner harmless. C. The contractor must come to the defense of the owner. D. The owner must not interfere with the contractor's schedule Correct Answer: D. The owner must not interfere with the contractor's schedule 4-9 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 Answer: D. Audited 4-16 A. 25% of weekly disposable earnings B. The amount by which weekly disposable earnings exceed thirty times the minimum wage C. The greater of A or B D. The lesser of A or B Correct Answer: D. The lesser of A or B 5-46 Which of the following is NOT true about a 16 year old working in Florida? A. Such a minor may NOT work in a field office. B. Such a minor may NOT work on scaffolding. C. Such a minor may NOT work more than 6 consecutive days in one school week. D. Such a minor may NOT work after 11 :00 pm on a school night. Correct Answer: A. Such a minor may NOT work in a field office. 5-31 A charge of age discrimination must be brought to the EEOC no later than: A. 300 days after the alleged discrimination B. 30 days after termination of the state administrative proceeding C. The LATER of A or B D. The EARLIER of A or B Correct Answer: D. The EARLIER of A or B 5-37 A contractor who knowingly makes false statements and does not comply with The Florida Worker's Compensation Law, may, upon conviction, be punished by a fine of not more than_____or by imprisonment for not more than ________. A. $500.00 -1 year B. $1,000.00 -1 year C. $1,000.00 -3 years D. $5,000.00 -5 years Correct Answer: A. $500.00 -1 year 5-54 If you, as a contractor, sublet any part of your contract work to a sub-contractor who is not covered by Workers' Compensation and one of his employees is injured on the job __________________. A. The sub-contractor must pay from his personal funds. B. You are liable for 1/3 the required compensation. C. You are liable for payment of compensation to that employee. D. The employee can receive no compensation. Correct Answer: C. You are liable for payment of compensation to that employee. 440.10 (1)(b) An installment of Workers' Compensation payable without an award is due on July 1st, but payment is delayed until July 10th. An additional _________should be added to the payment. a. 12%, $5.00 min. b. 20% c. 10% d. A and B Correct Answer: d. A and B 440.20 An employee refuses to observe safety rules and use safety equipment His Workers' Compensation _________. a. Will not be affected b. Will be reduced 25% c. Will be reduced 50% d. Will not be paid, because he contributes to an accident Correct Answer: b. Will be reduced 25% 440.09 In case of temporary partial disability, compensation shall be equal to 80 percent of the difference between _____________of the employee's average weekly wage and the pay the employee is able to earn. a. 90 percent b. 80 percent c. 20 percent d. 50 percent Correct Answer: b. 80 percent 440.15 An employer who has secured compensation under the provisions of this chapter shall ___________. a. Keep posted in a conspicuous place printed notices stating that the employer has secured the payment of compensation. b. Deliver a typed or printed certificate of insurance to each employee. c. Maintain proof of compensation insurance in an insurance compensation file. d. Does not need to provide any of the above Correct Answer: a. Keep posted in a conspicuous place printed notices stating that the employer has secured the payment of compensation. 440.40 No compensation shall be payable if an injury was caused primarily by___________________. a. Intoxication of the employee. b. The employee being under the influence of a narcotic. c. By the willful intention of the employee to the injure or kill himself d. All of the above. Correct Answer: d. All of the above. 440.09 Except as provided in section 440.12 (1) and 440.14 (3), a total but temporary disability payment shall not be made longer than ____________weeks. a. 14 b. 250 c. 104 d. 500 Correct Answer: c. 104 440.15 Which of the following is a true statement concerning Workers Compensation coverage? a. Employees can agree to pay a portion of the Workers Compensation premiums, if agreed to in writing. b. An employer will be obligated to rehire an employee, if the employer has 40 employees. c. Employers who understate payroll to the carrier can be penalized 15% plus the additional premium. d. An employer who fails to provide the required Workers Compensation may be fined 1.5 times the amount that should have been paid or $1,000, whichever is greater. Correct Answer: d. An employer who fails to provide the required Workers Compensation may be fined 1.5 times the amount that should have been paid or $1,000, whichever is greater. 440.105 An employee earns $6.00 per hour working a 40 hour week and has an average weekly wage determined to be $210.00. If the employee was injured on the job and could not work for four weeks, the total workers compensation benefit for the four week period would be approximately____________. a. $640.00 b. $560.00 c. $480.00 d. $160.00 Correct Answer: b. $560.00 440.15 Weekly benefit = $210 x 66.66% = $140 x 4 wks = $560. According to "The Florida Worker's Compensation Law," a determination of benefits will be based on a calculation involving the last __________ weeks of employment. A. 3 weeks B. 10 weeks C. 13 weeks D. 52 weeks Correct Answer: C. 13 weeks 440.14 Which grade of manila rope is of the highest quality? a. Number 1 Grade b. Number 1 Grade c. Number 1 Grade d. Yacht Correct Answer: d. Yacht 7-50 All of the following must follow the OSHA standards except: a. religious establishments b. general contractor with one employee c. landscape contractors D equipment rental businesses Correct Answer: a. religious establishments 7-7 What is the safe working load of 3/8" nylon rope? A. March 2, 2016 B. March 1, 2016 C. March 2, 2017 D. April 2, 2017 Correct Answer: C. March 2, 2017 8 months after Feb 1, 2017 plus one day Your company was involved with a dispute with an owner over a contract to construct a 14,000 sq. ft.warehouse valued at $1,437,000. The original contract was signed February 4, 1999, and was brought to substantial completion on November 15, 1999. The dispute centers on a change order which was approved by owner and architect on October 21, 1999, but which the owner has refused to pay. Assuming the facts as stated and no additional information is provided, should your company prevail, it should be entitled to: A. The original contract price and the value of the change order plus special damages, if any. B. The original contract price and the value of the change order plus liquidated damages only. C. The original contract price and the value of the change order plus loss of profits only. D. The original contract price and the value of the change order only. Correct Answer: A. The original contract price and the value of the change order plus special damages, if any. 8-13 In order for a contractor to be assured he has the right to inspect and cure an alleged defect in construction, the contract must contain which of the following clauses in BOLD FACED TYPE? A. Ch. 489 Notice of Claim B. Ch. 455 Notice of Claim C. Ch. 558 Notice of Claim D. Ch. 713 Notice of Claim Correct Answer: C. Ch. 558 Notice of Claim 8-17 According to the Florida Contractors Manual, Which of the following are not one of the three essential items of a construction contract? A. what is to be performed or built B. when it will be built C. how much and when payment will be made D. name of consumer Correct Answer: D. name of consumer 8-6 Which of the following contracts puts the contractor at the biggest risk A. Cost plus B. ConstructionManagement C. Fixed price D. Design/Build Correct Answer: C. Fixed price 8-7 Which of the following is true about punitive damages. A. Punitive damages not costly to litigate B. Punitive damages are not in accordance with FS 455 C. Punitive damages are not recoverable for a breach of contract D. Both B & C Correct Answer: C. Punitive damages are not recoverable for a breach of contract 8-25 The statutes of limitations of a construction contract are _________ years. A. 2 B. 3 C. 4 D. 5 Correct Answer: D. 5 8-23 A not in Privity subcontractor filed a notice to owner on February 2nd, on a job that he had begun on February 1st. If this subcontractor files a lien on April 3rd, how many days would he have to enforce the lien once the court clerk had certified and served a contest of lien? a. 30 b. 45 c. 60 d. 365 Correct Answer: c. 60 9-30 Which of the following is not an implied term? A. Payment will be made at the conclusion of the work B. Lien rights may be waived in advance of performing the work C. The contractor must furnish a contractor's final affidavit addressing payment to subcontractors and suppliers before being entitled to final payment. D. No party will interfere with or hinder the performance of any other party, but will cooperate in good faith Correct Answer: B. Lien rights may be waived in advance of performing the work 8-9 Which document is filed as part of the permit process that lists the owner contact information and establishes the legal parameters for subcontractor claims against the project? A. Notice to Owner B. Application for Permit C. Bond D. Notice of Commencement Correct Answer: D. Notice of Commencement 9-11 Which of the following is one way an owner can minimize the risk of having a lien filed on his or her property by non-privity entities? a. Have the contractor submit an affidavit that all persons are paid b. Stay active on the project and talk to the subcontractors c. Have the contractor obtain a performance bond d. Have the contractor obtain a payment bond Correct Answer: d. Have the contractor obtain a payment bond 9-75 713-02(6) Which of the following is NOT true with respect to the Lien Law (F.S. 713)? a. A not in privity contractor must file a notice to owner within 45 days of furnishing materials to establish a lien right b. A notice of commencement must be filed if the work is valued at over $3,500 c. A lien is good for 1 year d. A contest of lien shrinks the lien time from 1 year to 60 days Correct Answer: b. A notice of commencement must be filed if the work is valued at over $3,500 9-92 According to the AIA documents, if the primary General Contractor defaults and the Owner files an affidavit to take over the project, how much time do the subcontractors and material suppliers have to file liens if the Notice to Owner is filed properly? a. 45 days b. 60 days c. 30 days d. 90 days Correct Answer: d. 90 days 9-27 Which of the following is NOT TRUE regarding F.S.713? a. Lien rights cannot be waived b. Any supplier or material man providing materials to another material man does not have a lien right c. No lien may be enforced by a lien or who is not properly licensed at the time of the lien d. An in privity contractor must file a notice to owner within 45 days of first starting the work Correct Answer: d. An in privity contractor must file a notice to owner within 45 days of first starting the work 9-21 If a construction job is worth more than $2,500, and there is a construction loan covering the work, which is responsible for posting a copy of the notice of commencement at the job site? a. The contractor b. The lending institution c. The owner (CM 9-11) d. A or C Correct Answer: c. The owner (CM 9-11) 9-11 After signing an AIA 401 contract, a subcontractor who was not in privity began working on a project. The official start date of the subcontractor's work was February 20, 2006. The notice of commencement was filed on January 2, 2006. If the subcontractor is forced to file a lien in accordance withF.S. 713, how many days after filing the lien does he have to notify the owner of his action? a. 3 b. 15 c. 45 d. 90 Correct Answer: b. 15