NASCLA Practice Test 1: Construction Management Questions and Answers, Exams of Law

Download NASCLA Practice Test 1: Construction Management Questions and Answers and more Exams Law in PDF only on Docsity!

NASCLA Practice Test 1 questions with correct

answers

FOB freight prepaid requires _________ to pay for shipping charges. CORRECT ANSWER Seller (Chapter 14, page 11) Which of the following is not a member of the supervisory team? Foreman, Materials expediter, Owner's representative, Project manager CORRECT ANSWER Project Manager (Chapter 9, page 7) ________ scheduling consists of dates, delivery dates, payment schedule and vacations. It is a simplified method. CORRECT ANSWER Calendar (Chapter 9, page 2) When working in dwelling that was built prior to 1978, the employer is to provide each occupant with a pamphlet titled __________. CORRECT ANSWER Protect your family from lead in your home (Chapter 12, page 13) Who pays into a worker's unemployment compensation? CORRECT ANSWER Employer (Chapter 11, page 12) A lump sum contract on a project has a total contract price of $260,000. Retainage has been held back at 10%. The contractor has received progress payments for 75% of the project. The contractor submits a request for final payment that should be for? CORRECT ANSWER More than $80,000 (260,000 x .35) Which of the following is not a key characteristic of a sole proprietorship? CORRECT ANSWER Business expenses and personal income are not separated (Chapter 2, page 1)

What is the quick ratio (or acid test ratio) for a company that has current assets of $28,000, inventory of $4,000, and a current liabilities of $6,000? CORRECT ANSWER 4/1 (Chapter 14, Page 6) An EAP is required to be in writing for _______ employees or more. CORRECT ANSWER 11 (Chapter 12, page 3) Who pays into FUTA? CORRECT ANSWER Employer (Chapter 15, page 5) What is the purpose of just-in-time deliveries? CORRECT ANSWER Profit high and vandalism low (Chapter 9, page 9) Which of the following does not have to do with Ethics? Showing up to the job on time, do what you say you are going to do, doing the right thing, lying to the customer CORRECT ANSWER Lying to the customer (Chapter 5, page 2) Which of the following is not a reward for owning an entrepreneurship? Flexibility of time, making decisions, being your own boss, managing cash flow CORRECT ANSWER Managing cash flow (Chapter 1, page 1) Which of the following is not covered under the ADA? AIDS, drug addiction, alcohol addiction, paper cut CORRECT ANSWER Paper cut (Chapter 11, page 7) A job is estimated to cost $1 million. However, two companies have a cap of $500,000. They can legally do this job if they _______. CORRECT ANSWER Join venture (Chapter 2, page 6)

Willful violations of employment under FSLA may be prosecuted criminally, and the violator fined up to $_______? CORRECT ANSWER $10,000 (Chapter 11, page 5) Which is not an advantage of a partnership? CORRECT ANSWER Multiple decision makers (Chapter 2, page 2) ________ prohibits firing due to taking of property. CORRECT ANSWER Wage Garnishment Law (Chapter 11, page 8) The maximum number of shareholders permitted within an S corporation is? CORRECT ANSWER 75 (Chapter 16, page 2) In Florida, Liens must be filed with the County Clerk within _______ from completion or substantial completion of the work provided by the contractor or subcontractor? CORRECT ANSWER 90 Days (Chapter 13, page 2) Delegating provides for all but the following? Concentrate strategically, developing employees, I can do it all, accomplish tasks CORRECT ANSWER I can do it all (Chapter 5, page 1) The most important aspect of a contract is ________. CORRECT ANSWER Understanding (Chapter 8, page 1) A ______ is used when an owner contracts with one company to complete the construction process from the start to finish and purchase land. CORRECT ANSWER Turnkey (Chapter 8, page 6) If the contractor is ambiguous, the interpretation will go against whom? CORRECT ANSWER The party who wrote the contract (Chapter 8, page 10)

Who determines progress/final payments? CORRECT ANSWER Architect (Chapter 8, page 3) The construction industry Payment Protection Act of 1999 states _____. CORRECT ANSWER Payment bond protection are void before work begins (Chapter 4, page 8) What is the total project overhead for a project that last 4 months and has the following costs? Labor is $5,000, materials are $10,000, equipment rentals are $2,000, superintendents annual salary is $40,000, office rent is $500 per month, and office utilities are $400 per month. CORRECT ANSWER Between $12, and $16,000 (the only project overhead is going to be the salary of the superintendent. 40,000/12 = 3333.33 x 4 months) Exempt Forms W-4 expire on _____. CORRECT ANSWER February 16th (Chapter 15, page 6) Which of the following enterprises are double taxed? 1 Exam Prep Inc., ABC Construction DBA, Construction Done Right LLC, XYZ Contractor LP CORRECT ANSWER 1 Exam Prep, Inc (chapter 2, page 3) Which of the following is not considered as an acceptance to contract? Signature, Consideration, Date, Counter offer CORRECT ANSWER Counter Offer (chapter 8, page 2) A ______ is a special business arrangement that exists when two or more companies join to undertake a specific project. CORRECT ANSWER Joint Venture (Chapter 2, page 6)

The Family and Medical Leave Act does not allow for which of the following? Maintenance of group health insurance, 12 weeks unpaid, adopt a child, care for first cousin CORRECT ANSWER Care for first cousin (chapter 11, page 8) To determine how much to withhold in taxes from an employee, the employer is to use the employee's _______. CORRECT ANSWER W-4 (Chapter 15, page 4) A contractor pays a workers' compensation rate of $0.10 per $100 of office employee payroll, $2.00 per $100 of field supervisor payroll, and $0.36 per $ of field employee payroll. Total office employee payroll for the year is $35,00. Total field supervisor payroll is $58,000. Total field employee payroll is $325,000. The contractor receives a discount of 5% of total premiums for having a safety program in place. The total workers' compensation for the year is? CORRECT ANSWER More than $2,000.00 (0.10 x 35,000=3,500 (based on 100) 3,500/100=35.00 (office payroll premium) 2.00 x 58,000 = 116,000/100 = 1, (field S) 0.36 x 325,000 =117,000/100=1,170 (field E) 35 + 1160 +1170= 2,365 - 5% = $2,246. Which of the following does not apply to a C corporation? Transfer of ownership through sale of stock, limited life of the business, separate legal entity, availability of capital resources CORRECT ANSWER Limited life of the business (Chapter 2, page 3) Which of the following are permitted to be asked of a potential employee? Family members, pregnancy concerns, hours available, sexual preference CORRECT ANSWER Hours available (chapter 11, page 1) If D & K Construction wanted to limit their liabilities, they should become a(n) _________. CORRECT ANSWER C Corporation (chapter 2, page 3)

For federal taxes, a sole proprietor is to use self-employment tax form ______. CORRECT ANSWER 1040 & Schedule SE (chapter 15, page 2) The _____ method recognizes income when the employer has received it. CORRECT ANSWER Cash (chapter 14, page 7) Whose responsibility is it to understand OSHA? CORRECT ANSWER Employer (chapter 12, page 1) Which of the following insurances will protect an origination's officers? AO, CFO, DO, CEO CORRECT ANSWER DO (chapter 4, page 4) What percentage of a UST's combined volume must be underground? CORRECT ANSWER 10% (chapter 12, page 12) Which of the following bonds guarantees that the contractor will complete the project? bid bond, payment bond, performance bond, completion bond CORRECT ANSWER Performance Bond (Chapter 4, page 7) The MSDS provides for two main purposes; one purpose is product information, the other purpose is ________ information. CORRECT ANSWER Chemical (Chapter 12, page 6) Unemployment insurance is for employees who have been ________. CORRECT ANSWER Laid off (Chapter 4, page 5) The ______ method recognizes income when the employer has received it. CORRECT ANSWER Cash (Chapter 14, page 7)

Which of the following is not one of the key elements of a contract? offer, acceptance, counter offer, consideration CORRECT ANSWER Counter Offer (Chapter 8, page 1) Which of the following is not a key characteristic of a partnership? May be orally committed, keep separate bank accounts for business necessities, all owners have personal liability, continuance of organization in case of death of a partner CORRECT ANSWER Continuance of organization in case of death of a partner (Chapter 2, page 2) Where would deprecation of equipment be first entered? CORRECT ANSWER General journal (chapter 14, page 2) Fixed assets include all but which of the following? land, buildings, equipment, direct costs CORRECT ANSWER Direct costs (Chapter14, page 3)