Business Four

Question 1

When can the contractor accept a job where the owner does not have a preapproved loan

Answer 1

When there is an emergency situation and the owner has a high income and good credit

Question 2

When should employer provides information on safety procedures

Answer 2

When a new employee is hired

Question 3

Why would there be a difference between the actual inventory and inventory shown on paper

Answer 3

It is a common occurrence because of factors such as that natural loss and mistakes

Question 4

When is a worker considered an employee rather than an independent contractor

Answer 4

When the employer has direct control over the work being performed

Question 5

How can a new employee learn about the safety record of a company

Answer 5

The employer must post a summary of record of job-related injuries and illnesses once a year

Question 6

What is the biggest problem facing NEW contractors when trying to obtain a performance or bid bond

Answer 6

No prior track record

Question 7

What information must employees have to pass the job evaluation

Answer 7

They must have a detailed job description

Question 8

If retention is withheld until substantial completion of the entire job, the subs who worked on the early stages of the project can be put at financial disadvantages. What is the best way to remedy this situation

Answer 8

Tie the release of proportional retentions to the completion of the subs work rather than the entire job

Question 9

If you find that you are not getting work because your bids are too high you should try

Answer 9

Lowering your fixed expenses

Question 10

On a job site at Cal/OSHA inspector discovers a piece of equipment that is hazardous. A temporary variance maybe granted

Answer 10

If the equipment is new and can be fixed on site

Question 11

Which could a contract or not otherwise determined without going to the job site

Answer 11

Location of the electrical source

Question 12

What precautions must the contractor take with hazardous substances

Answer 12

The contractor must adopt a code of safe practices that relates to work at each job site

Question 13

What is a relatively simple way to figure overhead and profit for bid

Answer 13

Check the profit and loss statements for jobs of similar size

Question 14

Which of the following should be specific in a contract

Answer 14

Owner must pay for materials after they are delivered

Question 15

You signed a contract that includes fixing the hinges of a homeowner store after finishing the work the owner complains to you that you did not remove the dog scratches from the doors finish which is the best way to avoid a dispute or lawsuit

Answer 15

Be very specific about the work to be done review the contract and specifications line by line with the owner

Question 16

A client requests a bid package from a contractor. The package should include

Answer 16

A list of all subcontractors

Question 17

Who is responsible for having the job ready for the inspector

Answer 17

contractor

Question 18

When applying for a permit to reinstall wiring that has been removed from an old Victorian house the minimum license needed his

Answer 18

Specialty electrical license

Question 19

Records of accidents and injuries are kept

Answer 19

To help determine the causes of accidents and injuries

Question 20

When does it make the most sense for a contractor to finance a job

Answer 20

When it is an emergency situation and the owner cannot get the money soon enough

Question 21

Fixed costs apply to which of the following categories

Answer 21

Overhead

Question 22

On a small job what is the best way to make an efficient schedule

Answer 22

Bar chart

Question 23

Large job what is the best way to make an efficient schedule

Answer 23

Critical path method

Question 24

If you notice that the plans do not specify a fireproof door where one is required you should

Answer 24

Reported it to the architect

Question 25

How could a cash flow problem best to be prevented

Answer 25

Each payment should relate to a definite stage of the project

Question 26

If a contractor has a bad set of plans he should

Answer 26

Talk to the owner and see if you can get a better set of plans

Question 27

Is form 1099 miscellaneous required for the corporation that provided $600 in services as an independent contractor during the calendar year

Answer 27

No a 1099 is not required for a corporation

Question 28

The minimum fine for unlawful asbestos removal is

Answer 28

$1000

Question 29

When putting together a basic insurance package that needs your construction companies needs which would not be considered

Answer 29

Umbrella policy

Question 30

Which of the following is not considered overhead Rent storage utilities advertising

Answer 30

Storage

Question 31

Which agency would you contact when changing the location of the driveway on private property

Answer 31

Local building department

Question 32

When demolishing a three-story structure which agency would you contact first

Answer 32

Local building department

Question 33

The purpose of a specification sheet attached to a set of plans as to

Answer 33

Let the contractor know what has to be done

Question 34

What is the best method of adjusting inventory in the general ledger

Answer 34

Counting the existing inventory

Question 35

Where most of the suppliers MSDS sheets be kept

Answer 35

At the job site

Question 36

An 18-year-old can legally drive a vehicle as part of his normal job duties

Answer 36

.

Question 37

Least important in preparing a bid for a home construction project

Answer 37

Cost of permits

Question 38

A job calls for the demolition of an old residence in order for a new residence to be built. Which of the following should be done

Answer 38

Call this asbestos abatement contractor to check for us asbestos

Question 39

When spring toxic materials which of the following safety equipment must be worn

Answer 39

Respirator specifically designed for that material

Question 40

Federal regulations on overtime apply to

Answer 40

Piecework hourly employees salaried employees

Question 41

Which of the following is a true statement about payroll taxes All wages are subject to taxation Bartered goods are not subject to taxes Bonuses are not subject to taxes Payroll taxes must be paid only once a year

Answer 41

All wages are subject to taxation

Question 42

The best two methods of keeping track of job expenses are

Answer 42

Payroll journal and expense journal

Question 43

when must employer complete form I-9

Answer 43

Within three business days of the date of hire

Question 44

Bylot the maximum hours in a day and a minor may work is

Answer 44

Eight

Question 45

What is the maximum number of hours on minor can work on the day before school day

Answer 45

Eight

Question 46

By law the maximum hours in the week a minor may work it is

Answer 46

40 hours

Question 47

The best time to talk to a client about liens and stop notices

Answer 47

Before the job starts

Question 48

A contractor Susan owner for refusing to make final payment after the job was completed. The owner is demanding changes what could the contractor have done to prevent the lawsuit

Answer 48

The contractor could have walked the job with the owner and had the owner sign a job completion form

Question 49

What is the best time to talk to a client about liens and stop notices

Answer 49

Before the job starts

Question 50

When it comes to leans

Answer 50

The owner is responsible for paying for the work of improvement

Question 51

Your workers comp insurance policy lapsed two weeks ago. You mailed the check yesterday and today one of your employees is injured on the job

Answer 51

You are not covered because The policy lapsed

Question 52

Which type of bond ensures that the contractor will pay all labor and material bills and fulfill the terms of the contract

Answer 52

Contract bond

Question 53

What must licensed plumbing electrical sign and well drilling contractors have displayed on both sides of their commercial vehicles

Answer 53

Name business address contractors license number

Question 54

You have determined that a job you're working and involves us Bestos what should you do

Answer 54

Stop work immediately

Question 55

One of your customers accounts has gone past 30 days what is the best method of handling it

Answer 55

Begin to charge you interest on the customers account

Question 56

A bookkeeper for a construction company sends out bills once a month where should the company file it's copy of each bill

Answer 56

Accounts Receivable

Question 57

What should construction employees wear when working at night

Answer 57

Bright colored best

Question 58

Where would a contractor go to verify the building permits were issued for all construction work done on a house

Answer 58

The agency that granted initial permit

Question 59

Schedule of payments must be included in the home-improvement contract

Answer 59

.

Question 60

A timecard includes the day and hours the person worked as well as

Answer 60

A description of the work

Question 61

When the contractors bidding a job which of the following is the biggest risk factor

Answer 61

Owners financial stability

Question 62

The state safety code has been:

Answer 62

Stable for several years

Question 63

Contractors should keep good business records

Answer 63

To determine if the business is making a profit

Question 64

Where can workers obtain the name of the employers current workers compensation insurance carrier

Answer 64

From the notice that must be posted conspicuously

Question 65

A small contractor with no employee is working outside of his garage which type of insurance is not necessary at this time.

Answer 65

Workers comp

Question 66

A notice to owner is there for the protection of

Answer 66

The owner

Question 67

If a contractor doesn't pay its workers, The workers can put a lien on the house. The owner would still legally owe the workers The house can be sold by a sheriff to pay the workers The rest of the Job might not be completed

Answer 67

.

Question 68

Which court would you pursue a lawsuit of $25,000

Answer 68

Municipal

Question 69

If employee is fired as a result of garnishment she must notify who within how many days, if he intends to file a claim disputing lost wages following firing

Answer 69

Employer 30

Question 70

In small claims court if you want to be represented by an attorney

Answer 70

You cannot consult with an attorney in small claims court

Question 71

When a dispute over an alleged violation is referred to arbitration, the CSlb registrar looks for

Answer 71

License in good standing at the time of alleged violation

Question 72

How many employees must of employer have before they make disability insurance deductions

Answer 72

2

Question 73

How many employees must an employer have before having to apply for work and comp.

Answer 73

1 or more

Question 74

What tells you if you can pay off all your bills

Answer 74

Net working Capitol

Question 75

How much can a contractor raises prices during a declared state of emergency and not be guilty of price gouging

Answer 75

10%

Question 76

what is the maximum penalty a contractor convicted of price gouging during a declared state of emergency

Answer 76

$10,000 fine One year in jail permanent license revocation

Question 77

What is the maximum penalty for working as a contractor with a license has been revoked suspended or lapsed

Answer 77

Six months in jail in the $15,000 fine

Question 78

What components of a bed would be considered non-productive

Answer 78

Allowance for breakfast and lunch at remote job site

Question 79

Payment bond would be posted by the

Answer 79

Prime contractor or property owner

Question 80

Payment bond guarantees that the bonding company will pay valid claims for unpaid bills owed by the ? Posting bond

Answer 80

Prime contractor or property owner

Question 81

To prevent cash flow problems at the end of the construction project contractor should

Answer 81

Obtain a line of credit from a bank.

Question 82

Home-improvement sales persons registration must be renewed

Answer 82

Every two years

Question 83

The prime contractor must pay the subcontractor within how many days after receiving a progress payment

Answer 83

10 days

Question 84

If employee is 20 minutes late for work the employer may deduct:

Answer 84

30 minutes wage

Question 85

Of the following who can benefit from a mechanics lien

Answer 85

Architects and subcontractors

Question 86

What is the deadline for filing this years employee W-2s with the Social Security administration

Answer 86

February 28

Question 87

The general contractor with the general building license wants to form a corporation with two specialty contractors one has a C 10 license and the other has a C 36 the new corporation should

Answer 87

Be licensed in all three license classifications

Question 88

What is likely a penalty for contracting for jobs with an an active license

Answer 88

Fine and or license suspension for up to one year

Question 89

A licensed contractor wants to work with the person who is not licensed. which is a legal alternative

Answer 89

They should form a corporation and obtain a corporate contractors license

Question 90

Construction of an oil derrick does not require contractors license

Answer 90

.

Question 91

Most important factor with respect to a schedule of payments is

Answer 91

Amount

Question 92

If a contractor doesn't pay its workers, The workers can put a lien on the house. The owner would still legally owe the workers The house can be sold by a sheriff to pay the workers The rest of the Job might not be completed

Answer 92

.

Question 93

Which court would you pursue a lawsuit of $25,000

Answer 93

Municipal