NASCLA PSI Exam Practice Questions and Answers, Exams of Law

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FOB freight prepaid requires __________ to pay for shipping charges CORRECT ANSWER Seller 14- Which of the following is not a member of the supervisory team? CORRECT ANSWER Project manager 9- __________ scheduling consists of dates, delivery dates, payment schedule and vacations. It is a simplified method. CORRECT ANSWER Calendar 9- When working in dwelling that was built prior to 1978, the employer is to provide each occupant with a pamphlet title _________? CORRECT ANSWER Protect your family from lead in your home 12- You have ___________ days from the completion of a commercial structure or commercial construction project to file a lien claim form. CORRECT ANSWER 90 16- A lump sum contract on a project has a total contact price of $260,000. Retainage has been held back at 10%. The contractor has received progress payments for 75% of the project. The contractor submit a request for final payment should be for? CORRECT ANSWER More than $80,000 $260,000 * .35= $91, Which of the following is not a key characteristic of a sole proprietor ship? CORRECT ANSWER Business expenses and personal income are not separated. 2-

What is the quick ratio or or acid test ratio for a company that has current assets of $28,000, inventory of $4000, and current liabilities of $6000? CORRECT ANSWER 4/1 14- An EAP is required to be in writing for______employees or more. CORRECT ANSWER 11 12- Who pays into FUTA? CORRECT ANSWER Employer 15- What is the purpose of just in time deliveries? CORRECT ANSWER Profit high and vandalism low. 9- Ethics has to do with all but which of the following? CORRECT ANSWER Lying to the customer. 5- Which of the following is not a reward for owning a enterprise? CORRECT ANSWER Managing cash flow 1- Which of the following is not covered under the ADA? CORRECT ANSWER Paper cut. 11- A job estimated to cost $1 million. However, two companies have a Of $500,000. They can legally do this job if they___? CORRECT ANSWER Joint venture. 2- The standard make up in the construction industry is? CORRECT ANSWER 15%. 7- Which is not an advantage of a partnership? CORRECT ANSWER Multiple decision makers. 2-

Prohibits firing due to taking of property. CORRECT ANSWER Wage Garnishment law 11- The maximum number of shareholders permitted within an S corporation is? CORRECT ANSWER 75 2- The state sales tax is___Percent of the gross sales for materials purchased or leased in New Jersey. CORRECT ANSWER 6 15- Delegating provides for all but the following? CORRECT ANSWER I can do it all 5-1,5- The most important aspect of a contract is? CORRECT ANSWER Understanding. 8- A____________ is used when and owner of contracts with one company to complete the construction process from the start to finish and purchase land. How do you CORRECT ANSWER Turnkey. 8- If the contact is ambiguous , the interpretation will go against who? CORRECT ANSWER The party who wrote the contact 8- Who determines progress/final payment? CORRECT ANSWER Architect. 8- The construction industry payment protection act of 1999 states______ CORRECT ANSWER Payment bond protection are void before work begins. 4-

What is the total project overhead for a project that last for months and has the following cost? Labor is $5000 materials or $10,000, equipment rentals or $2000, superintendent's annual salary is $40,000, office rent is $500 per month; in office utilities or $400 per month. CORRECT ANSWER A Between $12,000 and $16,000. The only project overhead is going to be the salary of the superintendent. 40.000/12=3333.33 * 4 months Exempt Forms W-4 expires on___ CORRECT ANSWER February 15. 15- Which of the following enterprises are double taxed? CORRECT ANSWER 1 Exam Prep, Inc. 2- Which of the following is not considered as an acceptance to a contract? CORRECT ANSWER Counter offer. 8- A____is a special business arrangement that exist when two or more companies join to undertake a specific project. CORRECT ANSWER Joint Venture. 2- The family and medical leave act does not allow for which of the following? CORRECT ANSWER Care for first cousin. 11- To determine how much to withhold in taxes from employee, the employer is to use the employees_____ CORRECT ANSWER W-4. 15- A contractor pays a workers comp a Seshan rate of $.10 per $100 of office employees payroll, $2.00 per $100 of field supervisors payroll, and $.36 per $ of field employees payroll. Total office employee payroll for the year is $35,000. Total Office employee payroll for the year is $35,000. Total field supervisor payroll is $58,000. Total field employee payroll is $325,000. The contractor receives a discount of 5% of total premiums were having a safety program in place.

The total workers compensation for the year is? CORRECT ANSWER D More than $2,000. 0.10 * 35,000= 3,500 (based on 100) 3,500/100= 35.00 (Office payroll premium) 2.00* 58,000= 116,000/100= 1,160.00 (field S) 0.36 *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? CORRECT ANSWER Limited life of the business 2- Which of the following are permitted to be asked of a potential employee? CORRECT ANSWER Hours available. 11-1,11- If D & K construction wanted to limit their liabilities, they should become and _____________ CORRECT ANSWER C corporation. 2- For federal taxes, hey soul proprietor is to use self employment tax form____ CORRECT ANSWER 1040 & Schedule SE 15- The____method recognizes income when the employer has received it. CORRECT ANSWER B. Cash. 14- Failing to obtain proper workers compensation coverage is punishable by law and includes fines up to___for the first 10 days. CORRECT ANSWER $5,000 11- Which of the following insurance will protect our organizations officers? CORRECT ANSWER DO 4-

What percentage of a UST's combined volume must be underground? CORRECT ANSWER 10 12- Which of the following bonds guarantees that the contractor will complete the project? CORRECT ANSWER Performance bond. 4- The MSDS provides for two main purposes; one purpose is product information, the other purpose is _______________ information. CORRECT ANSWER Chemical. 12- Unemployment insurance is for employees who have been__________ CORRECT ANSWER Laid off. 4- The _____________ method recognizes income when the employer has received it CORRECT ANSWER Cash. 14- Which of the following is not one of the key elements of a contract? CORRECT ANSWER Counter offer 8-1,8- Which of the following is not a key characteristic of a partnership? CORRECT ANSWER D. Continuance of organization is case of death of a partner. 2- Where would depreciation of equipment be first entered? CORRECT ANSWER General journal. 14- Fixed assets include all but which of the following? CORRECT ANSWER Direct costs 14-