Business & Law

Question 1

Holes drilled into floor joists for piping shall not exceed 1/3 of the depth of the joist and:

Answer 1

not be closer than 2” to the top or bottom of the joist

Question 2

True or false: Water wells should be located on the opposite side or uphill side of the house from the drainfield

Answer 2

True

Question 3

The builder or contractor shall deliver to the customer, when construction is involved:

Associated Answers
1	specifications for the job
2	all necessary permits
3	both plans and specifications
4	fully executed copies of all agreements, including plans and specifications

Answer 3

4 fully executed copies of all agreements, including plans and specifications

Question 4

The builder is responsible for faulty workmanship for a period of _______. Starting from the date of purchase, completion or occupancy which ever occurs last.

Answer 4

18 months

Question 5

3) Which is not a requirement to obtain a builder’s license?
Associated Answers
1 taking a builder’s course and a one year apprenticeship
2 taking and passing the residential builder’s examination
3 paying the required license fee
4 completion of 60 hrs. of required study

Answer 5

1 taking a builder’s course and a one year apprenticeship

Question 6

A proper notification of change of address must be made within:

Answer 6

30 days

Question 7

What is the first step the Department will take to resolve a complaint between a buyer and builder?
Associated Answers
1 file a cease and desist order against the builder
2 file a summary suspension of the builder’s license
3 hold an informal conference
4 hold a contested case hearing

Answer 7

3 hold an informal conference

Question 8

At what point after a completed contract will the Department not investigate a complaint?
Associated Answers

Answer 8

18 months after completion, occupancy, or purchase, whichever occurs later

Question 9

True or False: ) A license can be revoked without a hearing:

Answer 9

True

Question 10

A father is the only qualified builder in a partnership he has with his son. The father dies. In order for the son to continue with the business, the son must:
Associated Answers

Answer 10

3 complete the license application procedure, including taking and passing the exam

Question 11

If the license of the qualified officer, partner, trustee, director, officer, member, or person exercising control of the corporation, partnership, or other association is revoked, or denied, the license of the corporation, partnership or other association shall:
Associated Answers

Answer 11

be suspended

Question 12

The phrase “good moral character” typically means:

Answer 12

Person is honest and fair

Question 13

An applicant operating as a corporation must submit which of the following to the Department?
Associated Answers
1 copy of the articles of incorporation
2 certified copy of sales tax license number
3 names and addresses of corporation board members
4 all of the above

Answer 13

All of the above

Question 14

If, as a licensed builder, you file for bankruptcy, you:

Associated Answers

Answer 14

are in violation of the Code and may be subject to any one of the several penalties

Question 15

What is a change in specifications prior to bidding called?

Answer 15

Change in specifications

Question 16

A licensee found guilty of one Article 6 violation may be:
Associated Answers
1 suspended, revoked, censured, or placed on probation
2 suspended, revoked, censured, placed on probation, and/or fined
3 suspended or reprimanded by the Labor Bureau
4 suspended, or placed on probation

Answer 16

2 suspended, revoked, censured, placed on probation, and/or fined

Question 17

15) A person who has had a limitation placed on a license may petition the Department, in writing, for a review of the decision to place the limitation. The licensee has how many days to file this petition?
Associated Answers
1	5 days
2	15 days
3	30 days
4	60 days

Answer 17

3 30 days

Question 18

According to the Occupational Code, the following is not a residential builder:
Associated Answers
1 one who demolishes houses
2 one who works for an hourly wage for his labor in building a house
3 one who assembles prefabricated housing
4 one who provides plans, labor and materials for the building of a house

Answer 18

2 one who works for an hourly wage for his labor in building a house

Question 19

8) The board member who has participated in an investigation on a complaint filed with the Department, or who has attended an informal conference, \_\_\_\_\_\_\_ participate in making the final decision on that complaint.
Associated Answers
1	must
2	must not
3	may arbitrate to
4	may be appointed to

Answer 19

2 must not

Question 20

A residential builder or maintenance and alteration contractors license is not required if:
Associated Answers
1 you contract to build a house as an electrician
2 you build homes part time
3 you are an officer of a court acting within the terms of the officer’s office
4 you work for a non-profit organization

Answer 20

3 you are an officer of a court acting within the terms of the officer’s office

Question 21

The law regulating licensing of the building trades is known as:
Associated Answers
1	Occupational Code of 1980
2	Public Act 299 of 1980
3	Michigan Builders License Law
4	both A and B

Answer 21

4 both A and B

Question 22

23) When a builder or contractor wants to advertise in the media, he must:
Associated Answers
1 furnish his license number before any advertising begins
2 furnish his license name and address
3 both a and b
4 neither, if he’s just in town for a while

Answer 22

3 both a and b

Question 23

26) What reason may the Department use for the denial of an application for a license?
Associated Answers
1	non-issuance of a surety bond
2	a notice of furnishing being issued
3	good and sufficient cause
4	not having insurance coverage

Answer 23

3 good and sufficient cause

Question 24

7) Failure to act on a complaint that construction is structurally/materially deficient is:
Associated Answers
1 punishable by fine or imprisonment
2 cause for federal involvement
3 is always the fault of the subcontractors
4 is not a problem if the complaint is 60 days old

Answer 24

1 punishable by fine or imprisonment

Question 25

Who is entrusted to enforce the licensing act requirements in the State of Michigan and who may prosecute?
Associated Answers
1 Attorney General enforces, the Department prosecutes
2 Department enforces, Attorney General prosecutes
3 the Department (BOPR)
4 the Judge Advocate General

Answer 25

2 Department enforces, Attorney General prosecutes

Question 26

When a salesperson terminates employment, what must the builder do?
Associated Answers
1 the builder must wait for a state requisition
2 the builder must wait for a written request by the salesperson
3 the builder must return the salesperson’s license within 5 days by certified mail
4 the builder must wait for the salesperson’s relinquishment of the sales card

Answer 26

3 the builder must return the salesperson’s license within 5 days by certified mail

Question 27

) A commission can be paid to you for the sale of goods and services of a builder provided:
Associated Answers
1 it is occasional and supplemental income
2 you are related to a licensee
3 you are employed by the provider of the stated goods and services and you hold a salesperson license
4 you hold a real estate license

Answer 27

3 you are employed by the provider of the stated goods and services and you hold a salesperson license

Question 28

If the company’s license is revoked, the salesperson’s license:
Associated Answers
1 is extended for six months or until the salesperson finds a new employment
2 is suspended
3 remains in effect, if the salesperson was not involved in any wrong doing
4 automatically transferred to the state

Answer 28

2 is suspended

Question 29

) An unlicensed builder who has the homeowner pull all building permits for the builder to construct a residential building over $599:
Associated Answers
1 is absolved from all liability
2 is legally circumventing the law
3 is in violation of the Department laws
4 is in violation of the Construction Lien Act

Answer 29

3 is in violation of the Department laws

Question 30

6) Which of the following is exempt from being licensed?
Associated Answers
1	maintenance and alteration contractor
2	residential builder
3	garage builder
4	approved US Government official

Answer 30

4 approved US Government official

Question 31

An applicant shall not be refused a license without:
Associated Answers
1 first obtaining an attorney
2 being deemed to have bad moral character
3 having an opportunity for a hearing before the Department
4 a valid driver’s license

Answer 31

3 having an opportunity for a hearing before the Department

Question 32

39) The Residential Builders license is only issued by the:
Associated Answers
1 Michigan Department of Labor
2 local building inspectors
3 Department of Licensing and Regulatory Affairs
4 Governor’s Office

Answer 32

3 Department of Licensing and Regulatory Affairs

Question 33

Following a complaint, the Attorney General's Office may order a builder to stop all work. Such a demand is known as:
Associated Answers
1	a liability order
2	a cease & desist order
3	a revocation
4	a suspension

Answer 33

2 a cease & desist order

Question 34

Commission" means:
Associated Answers
1	a "board" other than an agency
2	an agency other than a board
3	the same as "agency"
4	the same as "board"

Answer 34

2 an agency other than a board

Question 35

In the Occupational Code, “Department” means:
Associated Answers
1 Department of Labor
2 Department of Attorney General
3 Department of Licensing and Regulatory Affairs “LARA”
4 Department of H.U.D.

Answer 35

3 Department of Licensing and Regulatory Affairs “LARA”

Question 36

Who decides what penalty will be imposed against a residential builder who violates the occupational code?
Associated Answers
1 Builder’s Board
2 the Director of the Department, if the Board fails to take action within 60 days
3 Civil Liberties Union
4 both A and B

Answer 36

4 both A and B

Question 37

If a residential builder’s license is suspended:
Associated Answers
1 the sales people remain licensed for 30 days or until they find another builder
2 the builder’s salespersons’ licenses are also suspended
3 the builder’s salespersons are responsible for returning their license
4 none of the above

Answer 37

2 the builder’s salespersons’ licenses are also suspended

Question 38

Who submits a salesperson's license application?
Associated Answers
1	the builder
2	the salesperson
3	the department
4	the testing company

Answer 38

1 the builder

Question 39

xpiration date of a residential builders license shall be:
Associated Answers
1 annually on their application date
2 every year on the anniversary of their license
3 May 31
4 June 1

Answer 39

3 May 31

Question 40

The members of the board are appointed by the:
Associated Answers
1 commission
2 Governor, with the advice and consent of the senate
3 legislature
4 senate with the approval of the Governor

Answer 40

2 Governor, with the advice and consent of the senate

Question 41

Which of the following is a violation of the articles regulating the occupation?
Associated Answers
1 practicing fraud or deceit in obtaining a license
2 practicing fraud, deceit or dishonesty in practicing an occupation
3 violating a rule of conduct of an occupation
4 all of the above

Answer 41

4 all of the above

Question 42

Which of the following could be a penalty for violating an article regulating an occupation?
Associated Answers
1	placement of a limitation on a license
2	suspension of a license
3	revocation of a license
4	all of the above

Answer 42

4 all of the above

Question 43

Upon the completion of the contract between the builder and the homeowner, what is delivered?
Associated Answers
1 building agreement only
2 specifications for construction only
3 a copy of all instruments executed by the principals
4 his new furniture

Answer 43

3 a copy of all instruments executed by the principals

Question 44

An alternate form of testing must be provided for:
Associated Answers
1 a person with a physical handicap
2 a person with a mental handicap
3 request for an oral exam after failing the exam
4 all of the above

Answer 44

4 all of the above

Question 45

All records kept in the office of the Department shall be:
Associated Answers
1 open to the public
2 closed to the public
3 closed to the public, unless opened by court order
4 open only by federal intervention

Answer 45

1 open to the public

Question 46

A builder:
Associated Answers
1 need not display the license of his salesperson
2 must display the licenses of his salespersons in his place of business
3 need not have a licensed salesperson sell his goods and services
4 must display his salespersons licenses on each remodel job

Answer 46

2 must display the licenses of his salespersons in his place of business

Question 47

A residential contractor and a commercial contractor have the same regulatory commission for new construction of:
Associated Answers
1	four-story apartment buildings
2	small strip malls
3	jewelry store
4	all of the above

Answer 47

all of the above

Question 48

A complaint has been filed against a builder. In order for the dispute to be settled informally:
Associated Answers
1 a fine will be imposed
2 agreement must be reached between both parties and the Bureau
3 the builder must agree to a suspension of his license
4 the Board must take civil action in addition to the resolution of the complaint

Answer 48

2 agreement must be reached between both parties and the Bureau

Question 49

A valid reason for a general contractor to withhold payment from a licensed subcontractor would be:
Associated Answers
1 a draw made by subcontractor, which is not processed by the contractor
2 an improperly placed purchase order by the contractor
3 unacceptable work by the subcontractor
4 unacceptable work by the contractor

Answer 49

3 unacceptable work by the subcontractor

Question 50

If a builder decides to sell his business:
Associated Answers
1 he can sell his business only to a person who is already operating as a licensed builder
2 the business cannot be sold: its assets must be liquidated and it must be dissolved
3 the new owner must be licensed, or take the test and become licensed before he could operate the company
4 he can sell both his license and business to another person

Answer 50

3 the new owner must be licensed, or take the test and become licensed before he could operate the company

Question 51

In the Occupational Code, the word “Board” means:
Associated Answers
1 Board of Licensing and Regulation
2 Residential Builders and Maintenance and Alteration Contractors Board
3 Board of Review
4 Board of Examiners

Answer 51

2 Residential Builders and Maintenance and Alteration Contractors Board

Question 52

The “Respondent” in a complaint proceeding is:
Associated Answers
1 the person who files a complaint
2 the person against whom the complaint is filed
3 the person who investigates the complaint
4 the person who, in writing, makes the complaint known to the public

Answer 52

2 the person against whom the complaint is filed

Question 53

If the builder disputes the material facts of the complaint against him, the Board may:
Associated Answers
1 ask for a report from the building official in the area of the complaint
2 make an inspection to determine the facts
3 ask the complainant to furnish more information
4 any of the above

Answer 53

4 any of the above

Question 54

You can file a complaint against a builder or contractor if you are:
Associated Answers
1	the local building official
2	a dissatisfied customer
3	the Attorney General
4	any of the above

Answer 54

any of the above

Question 55

Which of the following cannot be done without a licensed contractor?
Associated Answers
1 building a house for your own use
2 repairs to a house by the owner
3 dividing a house into apartments by the owner
4 building a structure that will have both commercial and residential use

Answer 55

4 building a structure that will have both commercial and residential use

Question 56

An M & A contractor licensed for carpentry would like to install a roof. The contractor:
Associated Answers
1 must write the word “roofing” on the license
2 must take and pass the M & A contractor test for roofing
3 must use employees who are licensed roofers
4 can proceed. The existing license will also be good for roofing

Answer 56

2 must take and pass the M & A contractor test for roofing

Question 57

In the Occupational Code, “place” means:
Associated Answers
1 the place at which construction takes place
2 the physical location out of which one does business
3 a post office box
4 a telephone answering service

Answer 57

2 the physical location out of which one does business

Question 58

A contempt of court citation can be issued against a builder who is the object of a complaint:
Associated Answers
1 in lieu of an administrative hearing
2 prior to a formal investigation of a complaint
3 as a penalty for violation of the code
4 for willful refusal to cooperate in the investigation of a complaint

Answer 58

4 for willful refusal to cooperate in the investigation of a complaint

Question 59

Each member of a partnership or corporation must have a Builders License.
Associated Answers
1 True
2 False

Answer 59

2 False

Question 60

If a licensed builder hires a salesman to work part time on a salary, a salesman’s license is not required.
Associated Answers
1 True
2 False

Answer 60

2 False

Question 61

Who sets the standards of conduct, performance, qualifications and fitness of applicants, conducts investigations, and settles complaints?
Associated Answers
1	the Committee
2	the Board
3	the Senate
4	the Attorney General

Answer 61

2 the Board

Question 62

Failure to appear for an informal conference may result in:
Associated Answers
1	suspension of a license
2	denial of a license
3	revocation of a license
4	any one of the above

Answer 62

4 any one of the above

Question 63

If a company is organized as a Corporation, Limited Liability Company or a Partnership, must both the company and the qualifying officer puchase a license?
Associated Answers
1 Yes
2 No

Answer 63

1 Yes

Question 64

The Department's request for a current and accurate financial statement must be:
Associated Answers
1	sent by registered mail
2	served by the courts
3	signed by the Attorney General
4	a written demand

Answer 64

4 a written demand

Question 65

Which of the following are violations of the Occupational Code?
Associated Answers
1 abandonment (without legal excuse) of a contract, construction project, or operation engaged in or undertaken by the licensee
2 diversion of funds or property received for completion of a specific construction project or operation for any other construction project or operation, obligation, or purpose
3 failure to account for or remit money coming into the person’s possession which belongs to others
4 all of the above

Answer 65

4 all of the above

Question 66

It is a violation of the Occupational Code, in a maintenance and alteration contract, for the licensee to fail to furnish, to the lender, the purchaser's signed completion certificate executed upon completion of the work to be performed under the contract:
Associated Answers
1	yes
2	no
3	Under Federal Law
4	not in township jurisdiction

Answer 66

1 yes

Question 67

When do you, as a sole proprietor, have to file and pay into the unemployment fund?
Associated Answers
1 when you have three or more employees
2 when you have one employee who works less than 35 hours per week
3 when gross wages paid out exceed $1,000.00
4 payment into the unemployment fund is not required by law

Answer 67

3 when gross wages paid out exceed $1,000.00

Question 68

If a Maintenance and Alteration contractor, licensed as a carpenter, wants to add to his trade, such as roofing, must he take the roofing exam?
Associated Answers
1 yes
2 not if it’s less than 50% of his business
3 no, he can do roofing with his existing license
4 no, he must take the residential builders examination

Answer 68

1 yes

Question 69

Members of the Maintenance and Alteration Contractor’s Board are:
Associated Answers
1 voted for by the general public
2 appointed by the Governor with the consent of the senate
3 appointed by the Board
4 appointed by the Governor with the consent of the House of Representatives

Answer 69

2 appointed by the Governor with the consent of the senate

Question 70

A license must be renewed on or before:
Associated Answers
1	January 31
2	December 31
3	May 31
4	June 3

Answer 70

3 May 31

Question 71

Which of the following are not required to have a Residential Builder's license because they are licensed under a separate law?
Associated Answers
1	an electrical contractor
2	H.A.V. contractor
3	a plumbing contractor
4	all of the above

Answer 71

4 all of the above

Question 72

A person who, for compensation of $600.00 or more, undertakes with another the repair, alteration of, addition to, subtraction from, improvement of, moving of, or wrecking of a residential building must be licensed as a:
Associated Answers
1 Commercial Builder
2 Residential Builder or Maintenance and Alteration Contractor
3 Electrical Contractor
4 Handyman

Answer 72

2 Residential Builder or Maintenance and Alteration Contractor

Question 73

An employee or agent of a licensed residential builder or maintenance and alteration contractor who, for compensation, sells, negotiates, solicits for, furnishes or attempts to furnish the goods and services of a residential builder or maintenance and alteration contractor must:
Associated Answers
1 be honest and a good salesperson
2 be licensed as a residential builder
3 be licensed as a salesperson
4 be licensed as a residential maintenance and alteration contractor

Answer 73

3 be licensed as a salesperson

Question 74

The following are exempt from licensure except:
Associated Answers
1 a government representative
2 an owner of rental property, with reference to the maintenance and alteration of that rental property
3 a person working on one undertaking or project by one or more contracts in which the total contract price is more than $600.00
4 a person operating under an order of the court

Answer 74

3 a person working on one undertaking or project by one or more contracts in which the total contract price is more than $600.00

Question 75

The Department and Board may remove a limitation on a license:
Associated Answers
1 if the licensee retests
2 if the licensee makes restitution
3 if they determine that he could perform with competence each function of the occupation
4 both A and B

Answer 75

3 if they determine that he could perform with competence each function of the occupation

Question 76

A builder licensed as Robert Conrad Building Company may advertise as:
Associated Answers
1	Robert Conrad Building Company
2	Conrad Building Company
3	Bob The Builder
4	Robert Conrad Construction

Answer 76

1 Robert Conrad Building Company

Question 77

When contracting with a builder to build a house from a set of plans, the builder must provide to the purchaser:
Associated Answers
1 a set of plans
2 a set of the specifications
3 a fully executed copy of all agreements between them
4 all of the above

Answer 77

4 all of the above

Question 78

A restricted license could be one in which:
Associated Answers
1 the licensee may be restricted to a specific function of the occupation
2 the licensee may be restricted to a specified geographical location
3 the licensee may be required to have all of his contracts reviewed by an attorney
4 all of the above

Answer 78

4 all of the above

Question 79

Which of the following does not require licensing?
Associated Answers
1	maintenance and alteration contractor
2	residential builder
3	garage builder
4	commercial builder

Answer 79

4 commercial builder

Question 80

The effective date of the Occupational Law for Residential Builders and Maintenance and Alteration Contractors is:
Associated Answers
1	January 31, 1966
2	January 1, 1966
3	October 21, 1980
4	no such law

Answer 80

3 October 21, 1980

Question 81

If you are issued a cease and desist order following a complaint, you:
Associated Answers
1 must cease building for one year
2 are entitled to a hearing before the Bureau, if a written request is made within 30 days
3 have no recourse to regain your license, except by a lawsuit
4 may build until the end of the month

Answer 81

2 are entitled to a hearing before the Bureau, if a written request is made within 30 days

Question 82

As used in the Occupational Code:
Associated Answers
1	"complaint" means a verbal or written grievance
2	"board" means apathetic
3	"incompetence" means government action
4	"licensee" means the applicant

Answer 82

1 “complaint” means a verbal or written grievance

Question 83

A person shall not have a license issued to him or her until the person:
Associated Answers
1	pays the required fee
2	meets the requirements 10 through 26
3	files certificates of insurance
4	all of the above

Answer 83

1 pays the required fee

Question 84

Public Act 299 provides for licensing and the right to engage in business as:
Associated Answers
1	salesperson
2	residential builder
3	maintenance contractor
4	all of the above

Answer 84

4 all of the above

Question 85

A person registering a complaint with the Department against a builder must do so within:
Associated Answers
1 90 days
2 12 months of the purchase
3 18 months of sale, completion, or occupancy, whichever occurs later
4 60 days of the sale

Answer 85

3 18 months of sale, completion, or occupancy, whichever occurs later

Question 86

Act 299 has a specific licensure exemption for:
Associated Answers
1 all 9 members of the builder’s board
2 unlicensed builders who disclose their status to their clients
3 employees of licensed builders
4 employees of unlicensed builders

Answer 86

3 employees of licensed builders

Question 87

Who can licensed contractors bring to a hearing to speak on their behalf?
Associated Answers
1 his or her subcontractors
2 a duly authorized representative or attorney
3 the Board member who participated in the investigation
4 they are not allowed to defend themselves

Answer 87

2 a duly authorized representative or attorney

Question 88

What is the purpose of an investigative conference?
Associated Answers
1 to determine what the penalty should be
2 to terminate or suspend the license
3 to determine if there is cause for a hearing or complaint
4 to establish the amount of the fine

Answer 88

3 to determine if there is cause for a hearing or complaint

Question 89

How many days advance notice will a person be given before an investigative conference is held?
Associated Answers
1	5 days
2	10 days
3	15 days
4	30 days

Answer 89

2 10 days

Question 90

How many days does a person have from receipt of a complaint to respond?
Associated Answers
1	5 days
2	10 days
3	15 days
4	30 days

Answer 90

3 15 days

Question 91

Can the Department demand a financial statement at any time?
Associated Answers
1 no
2 yes, and the builder shall respond within 30 days
3 yes, and the builder shall respond within 15 days
4 yes, and the builder shall respond within 45 days

Answer 91

2 yes, and the builder shall respond within 30 days

Question 92

Can a builder solicit a contract by promising the purchaser a bonus which is contingent upon the purchaser displaying his dwelling to a third person?
Associated Answers
1 yes, if the agreement is in writing and fully executed
2 no, never
3 yes, as long as the bonus is a fixed amount and not a percentage
4 yes, as long as it is not in writing

Answer 92

2 no, never

Question 93

When a salesperson terminates employment with a builder, what must the salesperson do?
Associated Answers
1 the salesperson returns the license within 5 days via regular mail
2 the salesperson returns the ID pocket card via certified mail within 30 days
3 the salesperson returns the pocket ID card via certified mail within 5 days
4 the builder returns both the pocket ID card and the license to the Department within 5 days via certified mail

Answer 93

3 the salesperson returns the pocket ID card via certified mail within 5 days

Question 94

Where should the licenses be displayed in a builder’s office?
Associated Answers
1 on the bathroom wall
2 on the office wall in a conspicuous position
3 in a secure place where they will not be stolen
4 in the file cabinet with other important papers

Answer 94

2 on the office wall in a conspicuous position

Question 95

Who sets the standards of conduct, performance, qualifications and fitness of applicants, conducts investigations, settles complaints, and handles disciplinary procedures?
Associated Answers
1	the board
2	the Governor
3	the applicant
4	the "Act"

Answer 95

1 the board

Question 96

A licensee, upon written demand and notice by the Department, shall within \_\_\_\_\_\_\_ days submit a current and accurate financial statement showing his or her current financial status.
Associated Answers
1	10
2	15
3	30
4	60

Answer 96

3 30

Question 97

What is the completion date of a structure?
Associated Answers
1 upon final inspection by state and local inspectors
2 upon final approval of state and local inspectors
3 the date the certificate of occupancy is issued
4 all of the above

Answer 97

3 the date the certificate of occupancy is issued

Question 98

Which of the following cannot be used by the Department to determine the fitness of an applicant to hold a license:
Associated Answers
1 your scores on a license test
2 an arrest for an offense, which is not followed by conviction
3 your general financial solvency
4 your standards of professionalism and competency

Answer 98

2 an arrest for an offense, which is not followed by conviction

Question 99

When criminal charges are brought against a builder he:
Associated Answers
1 can avoid a penalty by assigning blame to his subcontractors
2 has the same right to legal process as anyone accused of an offense
3 can no longer do business in Michigan
4 can only ask for a hearing before the Bureau of Professional and Occupational Regulation

Answer 99

2 has the same right to legal process as anyone accused of an offense

Question 100

If the builder decides on his own to use cheaper materials than specified without a change order he is:
Associated Answers
1 acting in violation of the code, even if the materials themselves are not in violation of the code
2 breaking the contract between himself and the owner
3 limiting his legal claim to payment by the owner
4 all of the above

Answer 100

4 all of the above

Question 101

) When a builder signs a citation issued by the Bureau, it:
Associated Answers
1 means the builder cannot be further penalized by the Bureau for that offense
2 is acceptance of a cease and desist order
3 only indicates that the citation has been received by the builder
4 means that the builder has admitted to the violation and has forfeited his right to a hearing

Answer 101

3 only indicates that the citation has been received by the builder

Question 102

If a company loses their qualifying officer, the company’s license is suspended.
Associated Answers
1 true
2 false

Answer 102

1 true

Question 103

f you wish to renew a license that has expired within 60 days of the expiration date, you must pay a late renewal fee of \_\_\_\_ plus the license fee.
Associated Answers
1	$10
2	$20
3	$30
4	$40

Answer 103

$20

Question 104

How many board members are needed to constitute a quorum?
Associated Answers
1	4
2	5
3	6
4	7

Answer 104

2 5

Question 105

ole proprietors, corporations, LLCs and partnerships all have to purchase a license. What other entities require the purchase of a license?
Associated Answers
1 sales persons
2 qualifying officers of Corps, LLCs and Partnerships
3 all branch offices
4 all of the above

Answer 105

4 all of the above

Question 106

) If there is a contractual agreement to use arbitration as a means of settling disputes, will the board take action against a licensee if the step required in the arbitration agreement are met by the contractor.
Associated Answers
1 yes
2 no

Answer 106

2 no

Question 107

What must sales people and contractors use to identify themselves to potential customers in door to door sales?
Associated Answers
1	their business card
2	their wallet license ID card
3	their license number
4	any of the above

Answer 107

2 their wallet license ID card

Question 108

A corporation has three branch offices and six sales people. If all of these licenses expire in the same year, how many licenses must be renewed by May 31st?
Associated Answers
1	2
2	5
3	8
4	11

Answer 108

4 11

Notes: 1 for their qualifier, 1 for the corporation, 3 for the branch offices and 6 for the sales people.

Question 109

Sworn Statements are required by law to be used by contractors as a means of relinquishing financial transparency to the owners, material providers or subcontractors. If the owner requested a copy of a builders sworn statement, how may days does the contractor have to provide it?
Associated Answers
1	1
2	3
3	7
4	10

Answer 109

4 10

Question 110

The company’s listed on a contractors sworn statement will typically be material providers and subcontractors.
Associated Answers
1 true
2 false

Answer 110

1 true

Question 111

How many days does a contractor or material provider have to file a lien against an owner's property from their last day on the job or from time of purchase
Associated Answers
1	30 days
2	45 days
3	60 days
4	90 days

Answer 111

4 90 days

Question 112

Subcontractors and material suppliers must provide to the owner of a project their "Notice of Furnishings" within \_\_\_\_ days of first providing any labor or materials.
Associated Answers
1	5
2	10
3	15
4	20

Answer 112

4 20

Question 113

A person who files a lien must take action to foreclose on the lien within \_\_\_\_\_\_\_.
Associated Answers
1	30 days
2	3 months
3	6 months
4	1 year

Answer 113

4 1 year

Question 114

Owners must make available a "Notice of Commencement" which will provide the correct information as to the owner or owners of a property and their correct addresses. If a contractor requests a copy the owner must provide it within \_\_\_\_\_\_\_\_.
Associated Answers
1	10 days
2	15 days
3	20 days
4	30 days

Answer 114

1 10 days

Question 115

Contractors who understand what their responsibilities are under the lien laws of Michigan will file the necessary forms and protect their right to be paid.
Associated Answers
1 true
2 false

Answer 115

1 true

Question 116

Both LLCs and _______ need to provide copies of their Articles of Incorporation when applying for a license.

Associated Answers
1	Sole Proprietorships
2	Joint Ventures
3	Partnerships
4	Corporations

Answer 116

4 Corporations

Question 117

Passing test scores are only good for:

Associated Answers
1	90 days
2	1 year
3	18 months
4	2 years

Answer 117

2 1 year

Question 118

)
Salespeople may only work under one contractor at a time.

Associated Answers
1 True
2 False

Answer 118

1 True

Question 119

)
If a license is suspended or revoked, the licensee must return it to the Department within:

Associated Answers
1	3 days
2	5 days
3	7 days
4	10 days

Answer 119

4 10 days

Question 120

If a qualifying officer leaves a company, they have ______ to notify the Department in writing.

Associated Answers
1	10 days
2	24 hours
3	30 days
4	60 days

Answer 120

1 10 days

Question 121

Residential builders are required by law to have an actual office in Michigan where their business records are kept.

Associated Answers
1 True
2 False

Answer 121

1 True

Question 122

Which of the following does not need to be included in a residential construction contract?

Associated Answers
1	specifications and plans
2	costs
3	type and amount of work to be done
4	professional architect or engineer approval

Answer 122

4 professional architect or engineer approval

Question 123

If someone makes a complaint aggainst you, you must respond to the notice within _____ of receipt.

Associated Answers
1	7 days
2	10 days
3	15 days
4	30 days

Answer 123

3 15 days

Question 124

If you have let your licesne lapse, you are still responsible for reporting a change of address:

Associated Answers
1 up to 7 years after the license has changed
2 3 years after all complaints have been closed
3 Until all final orders have been complied with
4 Any of the above

Answer 124

4 Any of the above

Question 125

)
If you are late to renew your license, there is a fee of:

Associated Answers
1	$15
2	$20
3	$25
4	$50

Answer 125

2 $20

Question 126

An arrest record that was not followed by a conviction is still considered as a count against you when applying for a license.

Associated Answers
1 True
2 False

Answer 126

2 False

Question 127

The ___________ is a Michigan specific civil rights legislation.

Associated Answers
1	Walsh-Healy Act
2	Elliott-Larson Civil Rights Act
3	Civil Rights Act of 1866
4	Fair Housing Act

Answer 127

2 Elliott-Larson Civil Rights Act

Question 128

Which of the following is NOT exempt under the Ellliott-Larson and Persons with Disabilities Acts?

Associated Answers
1 rental of a unit in a two-family dwelling that is occupied by the owner
2 rental of a room in a single-family dwelling occupied by the owner
3 sale of a by the owner of a unit in a two-family dwelling
4 rental of a unit in a multi-family dwelling

Answer 128

4 rental of a unit in a multi-family dwelling

Question 129

These laws shape and influence what job restrictions and qualifications may be established, how advertisement are placed and what tests may be used in the applicant screening process.

Associated Answers
1	Equal Employment Opportunity
2	Fair Housing
3	Dodd-Frank
4	TRID

Answer 129

1 Equal Employment Opportunity

Question 130

Which of the following is NOT an acceptable question or topic to discuss with a potential candidate?

Associated Answers
1 Reason for leaving their previous job
2 Description of a typical day at current job
3 Birthplace of the applicant or their parents
4 How long they have been job hunting

Answer 130

3 Birthplace of the applicant or their parents

Question 131

Which of the following pre-employment questions pose legal implications by tending to single out specific protected classes?

Associated Answers
1	Previous arrest records
2	Financial status
3	Birth dates
4	All the above

Answer 131

4 All the above

Question 132

)
_____ is a naturally occurring fibrous mineral.

Associated Answers
1	lead
2	asbestos
3	silica
4	radon

Answer 132

2 asbestos

Question 133

ACM (Asbestos Containing Material) is any material containing more than _____ % asbestos.

Associated Answers
1	1%
2	5%
3	7%
4	10%

Answer 133

1 1%

Question 134

Records of asbestos exposure must be kept for:

Associated Answers
1	5 years
2	10 years
3	20 years
4	30 years

Answer 134

4 30 years

Question 135

The agency responsible for promulgating and enforcing the Renovation, Repair and Painting Program is:

Associated Answers
1	DNR
2	EEOC
3	HUD
4	EPA

Answer 135

4 EPA

Question 136

When considering lead-based paint exposure, are hospitals considered “target” housing?

Associated Answers
1 Yes
2 No

Answer 136

2 No

Question 137

Houses built before _______ typically have lead paint risk factors.

Associated Answers
1	1990
2	1978
3	2000
4	2003

Answer 137

2 1978

Question 138

Since 2010, all contractors who work with homes built prior to 1978 with lead paint hazards must be certified renovators.

Associated Answers
1 True
2 False

Answer 138

1 True

Question 139

EPA has established limits for minor repairs of maintenance, that do not require compliance with the RRP Rule. Work that does not exceed _____ sq ft per interior room of 20 sq ft is exempt.

Associated Answers
1	4 sq ft
2	6 sq ft
3	8 sq ft
4	10 sq ft

Answer 139

2 6 sq ft

Question 140

RP certifications are good for:

Associated Answers
1	2 years
2	3 years
3	5 years
4	6 years

Answer 140

3 5 years

Question 141

You may become certified by taking a 4 hour course provided by the local building department.

Associated Answers
1 True
2 False

Answer 141

False

Question 142

Documentation of renovations, testing and training related to renovations must be kept for:

Associated Answers
1	2 years
2	3 years
3	5 years
4	7 years

Answer 142

2 3 years

Question 143

hsi radioactive gas comes from the natural breakdown of uranium soil, rock and water.

Associated Answers
1	asbestos
2	radon
3	lead
4	sulphur

Answer 143

2 radon

Question 144

A ______ layer of clean gravel below the slab allows radon gas to move more freely under the building.

Associated Answers
1	2 inch
2	3 inch
3	4 inch
4	6 inch

Answer 144

3 4 inch

Question 145

_______ should be placed on top of the gravel base to prevent the radon gas from entering the house.

Associated Answers
1	rigid foam
2	loose fill
3	cardboard
4	heavy plastic sheeting

Answer 145

4 heavy plastic sheeting

Question 146

It is recommended you run a 3 or 4 inch PVC pipe from the gravel to the roof where radon can be safely vented out of the house.

Associated Answers
1 True
2 False

Answer 146

True

Question 147

Which business organization is regulated the least by the government?
Associated Answers
1	Limited Liability Company
2	Corporation
3	Partnership
4	Sole Proprietorship

Answer 147

4 Sole Proprietorship

Question 148

In a general partnership, each partner is liable for the debt of the company up to the percentage of the company they own.
Associated Answers
1 true
2 false

Answer 148

2 false

Question 149

What business organization provides the most financial protection for the owners?
Associated Answers
1	Sole Proprietorship
2	General partnership
3	Corporation
4	Limited Partnership

Answer 149

Corporation

Question 150

Sole Proprietorships can issue and sell stock in the company to raise capital.
Associated Answers
1 true
2 false

Answer 150

2 false

Question 151

Can a corporation actually be listed as the sole owner of a property?
Associated Answers
1 yes
2 no

Answer 151

1 yes

Question 152

Limited Liability Companies have the ability to be passed down to family members when an owner (member) dies.
Associated Answers
1 true
2 false

Answer 152

2 false

Question 153

Sub Chapter “S” Corporations can retain their status no matter how many stockholders they have.
Associated Answers
1 true
2 false

Answer 153

2 false

Question 154

f you are naming the Sole Proprietorship something other than your real name, you will need to file a Certificate of Assumed Name with the county clerk’s office.
Associated Answers
1 True
2 False

Answer 154

True

Question 155

A builder's personal income will be reflected on tax returns except:
Associated Answers
1	Sole Proprietorship
2	Partnerships
3	Limited Liability Company's
4	C-Corporations

Answer 155

4 C-Corporations

Question 156

) A sole proprietorship is not considered to be a legal entity under the law, but rather is an extension of the individual who owns it.
Associated Answers
1 true
2 false

Answer 156

1 true

Question 157

Parternerships must file a certificate of co-partnership with the county clerk’s office in the counties in which you will be doing business.
Associated Answers
1 true
2 false

Answer 157

true

Question 158

A 50/50 partnership dissolves and one of the partners does not fulfill his responsibility to pay off creditors. To what extent must the other partner contribute to this debt in order to keep his good name and standing?
Associated Answers
1	50 %
2	75%
3	100%
4	these things can be negotiated

Answer 158

3 100%

Question 159

Corporations are entities that are separate and distinct from their owners. This means that the debt of the company does not transfer to the owners.
Associated Answers
1 true
2 false

Answer 159

1 true

Notes: Creditor will often require corporations, limited liability company’s and partnerships to sign a personal guarantee for repayment of loans, especially in the early stages of the company’s development.

Question 160

C- Corporations are taxed on their earnings at the corporate level and the owners are then taxed on any cash distribution they receive, this is referred to as?
Associated Answers
1	a rip off
2	double taxation
3	dividend taxation
4	none of the above

Answer 160

2 double taxation

Question 161

Corporations who qualify can elect to be treated as an \_\_\_\_\_\_\_\_\_\_\_\_\_ to avoid double taxation.
Associated Answers
1	individual
2	seperate entity
3	S-Corporation
4	LLC

Answer 161

3 S-Corporation

Question 162

S-Corporations, Partnerships and LLCs must all file income tax returns and pay tax on profits.
Associated Answers
1 true
2 false

Answer 162

2 false

Notes: Only C-Corporations pay tax on profits

Question 163

Owners or members of S-Corporations, Partnerships and Limited Liability Company’s who collect distributions from profit made by these company’s pay individual income tax on these distributions.
Associated Answers
1 true
2 false

Answer 163

1 true

Question 164

) An advantage that a Limited Liability Company has over a partnership is?
Associated Answers
1 employees can be issued a 1099
2 limited liability of the members
3 employers are not liable for unemployment tax
4 lower insurance cost

Answer 164

2 limited liability of the member

Question 165

Temporary storage facilities, dumpsters and utilities are considered \_\_\_\_\_\_\_\_\_ overhead.
Associated Answers
1	company
2	project
3	indirect
4	None of the above

Answer 165

2 project overhead

Question 166

) Indirect labor costs like taxes and insurance are sometimes referred to as \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.
Associated Answers
1	Labor Burden
2	Cost of doing business
3	Payroll expenses
4	All of the above

Answer 166

1 Labor Burden

Question 167

A contractor should not only consider the costs of equipment needed to build the project, whether owned or rented, but also the operating/maintenance expenses, repair of, storage, delivery, finance cost, insurance, and taxes.
Associated Answers
1 true
2 false

Answer 167

1 true

Question 168

When adding profit to an estimate, the value is usually \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.
Associated Answers
1	a flat fee
2	a percentage of the total job cost
3	30%
4	25%

Answer 168

2 a percentage of the total job cost

Question 169

What are the first steps in completing an estimate?
Associated Answers
1	Review project documents
2	Conduct environmental assessments
3	Inspect the job site
4	All of the above

Answer 169

4 All of the above

Question 170

Unit price estimates consist of assigning costs to each separate unit (task) of construction.
Associated Answers
1 true
2 false

Answer 170

1 true

Question 171

A complete list of all of the materials and items of work that would be required to complete a project are \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.
Associated Answers
1	material and time data sheets
2	quantity surveys (take off)
3	labor and material break downs
4	shopping lists

Answer 171

2 quantity surveys (take off)

Question 172

It is always wise to choose the subcontractor who provides the lowest bid.
Associated Answers
1	true
2	false
Notes:

Answer 172

2 false

Question 173

What would be the best source to use when estimating job site overhead?
Associated Answers
1 Overhead site survey
2 Local lumber company
3 Historical job site overhead costs records
4 None of the above

Answer 173

3 Historical job site overhead costs records

Question 174

Recognizing that delays are inevitable, the schedule should plan for this by considering \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.
Associated Answers
1	Contingency time
2	Float time
3	Extra time
4	None of the above

Answer 174

1 Contingency time

Question 175

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_are reasonable estimates of funds set aside for a particular item in a project (such as lighting fixtures). The contractor is not held to that price.
Associated Answers
1	Budget overrides
2	Allowances
3	Budget tolerance expectancies
4	All of the above

Answer 175

2 Allowances

Question 176

The basic hourly wage incurred while an employee is being productive in the building process is known as \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.
Associated Answers
1	direct labor cost
2	scale
3	reasonable wage
4	overtime

Answer 176

1 direct labor cost

Question 177

An advantage to renting equipment can be \_\_\_\_\_\_\_\_\_\_ .
Associated Answers
1	short term need
2	distant job location
3	no maintenance costs
4	all of the above

Answer 177

4 all of the above

Question 178

Typical industry markup is \_\_\_\_\_%.
Associated Answers
1	10
2	15
3	18
4	20

Answer 178

2 15

Question 179

The cost of having employees includes their hourly wage and other expenses not included in their wage such as, matching the employees social security and medicare contributions, unemployment and workers compensation expenses. These additional costs are called \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.
Associated Answers
1	payroll taxes
2	negitive cash flow
3	labor burden
4	any of the above

Answer 179

3 labor burden

Question 180

Items not specified in the project plans such as plumbing fixtures, electrical fixtures, and flooring can be handled by negotiating a budget for these items not yet decided upon. These additional monies set aside for the owner are called \_\_\_\_\_\_\_\_\_\_\_ .
Associated Answers
1	contingencies
2	allowances
3	contract take off items
4	none of the above

Answer 180

2 allowances

Question 181

Which of the following are indirect job cost expenses?
Associated Answers
1	equipment depreciation
2	a superintendant at the jobsite
3	bonds and permits
4	all of the above

Answer 181

1 equipment depreciation

Question 182

Which of the following are direct job cost expenses?
Associated Answers
1	subcontractors fees
2	material costs
3	rental equipment fees
4	all of the above

Answer 182

4 all of the above

Question 183

A contractor developed his bid charging his customer $7.50 a square foot to purchase and install flooring materials. This type of estimate is referred to as?
Associated Answers
1	unit price estimate
2	lump sum
3	conceptual estimate

Answer 183

1 unit price estimate

Question 184

)
Any changes to the bid before it is due can be submitted by an _________.

Associated Answers
1	appeal
2	addendum
3	change order
4	submittal

Answer 184

2 addendum

Question 185

Factors that will influence and contribute to the cost of a project include all but the following:

Associated Answers
1	equipment
2	financial stability
3	overhead
4	degree of difficulty

Answer 185

2 financial stability

Question 186

A _____________ assigns tasks and materials to specific job categories, such as supervision, clean-up, labor/materials and project general conditions.

Associated Answers
1	Value Engineering System
2	Contingency Plan
3	Change Proposal Log
4	Job Cost System

Answer 186

4 Job Cost System

Question 187

Profit is the amount of money left over after a project is 100 percent complete and referred to as net, or clear profit.

Associated Answers
1 True
2 False

Answer 187

1 True

Question 188

In order for a contract to become a binding document, it must contain four key elements which are an offer and acceptance, competent parties, legal purpose and:
Associated Answers
1	Consideration
2	Evaluation
3	Notary
4	Witnesses

Answer 188

1 Consideration

Question 189

The term consideration means that both parties to a contract must be exchanging something of value.
Associated Answers
1 true
2 false

Answer 189

1 true

Question 190

What is the term used to identify changes made to contract documents before the execution of the basic owner contractor agreement?
Associated Answers
1	change orders
2	modifications
3	Addenda
4	All of the above

Answer 190

3 Addenda

Question 191

Oral contracts are valid, but are often difficult to enforce.
Associated Answers
1 true
2 false
Notes: Michigan requires that all residential construction projects be in writing!

Answer 191

2 false

Notes: Michigan requires that all residential construction projects be in writing!

Question 192

Terms used in a contract that allow the owner to withhold an agreed upon percentage of the contract funds until the project is 100% complete is called:
Associated Answers
1	Withholding allowance
2	Retainage
3	Retainer
4	Escrow

Answer 192

2 Retainage

Question 193

Changes made to the contract documents after the signing of the basic owner-contractor agreement are called:
Associated Answers
1	Addenda
2	Modifications
3	Notary
4	Bulletins

Answer 193

2 Modifications

Question 194

Change orders are an example of contract modifications.
Associated Answers
1 true
2 false

Answer 194

1 true

Question 195

When the contractor assumes all design and construction responsibilities this contract is known as:
Associated Answers
1	Turn key
2	Design/Build
3	Fast Track
4	Single prime

Answer 195

2 Design/Build

Question 196

These are common contract terms that predetermine how important issues involved in a lawsuit will be addressed, such as attorney's fees being recouped by the prevailing party in the lawsuit, or agreeing to arbitration as a method of resolving disputes.
Associated Answers
1	recitals
2	boilerplate provisions
3	rescissions
4	addenda

Answer 196

2 boilerplate provisions

Question 197

The first and most important element in a contract is offer and acceptance.
Associated Answers
1 true
2 false

Answer 197

1 true

Question 198

Retainage is usually paid with the final payment.
Associated Answers
1 true
2 false

Answer 198

1 true

Question 199

The contract should provide for a schedule as to when progress payments will be disbursed and the amount of money that will be available to the contractor at each payment.
Associated Answers
1 true
2 false

Answer 199

1 true

Question 200

A \_\_\_\_\_\_\_\_\_\_\_\_ is when the terms of the contract have been violated to the extent that the contract can no longer be valid.
Associated Answers
1	liquidation
2	material misrepresentation
3	material breach
4	immaterial breach

Answer 200

3 material breach

Question 201

) You have a new roof and with the first heavy down pour of rain it's leaking. There is no written warranty from the contractor, what type of warranty will require the contractor to correct the problem?
Associated Answers
1	limited warranty
2	special warranty
3	specific warranty
4	implied warranty

Answer 201

4 implied warranty

Notes: Just by the nature of the job itself there is an implied warranty. People reroof their roof so they won’t leak!

Question 202

A subcontract is a contract between the subcontractor and which of the following?
Associated Answers
1	the laborers
2	the material providers
3	the owner
4	the prime contractor

Answer 202

4 the prime contractor
Notes: Large projects will typically have one contractor who is contracting with the owner, which means it’s a prime contract. All other service providers then contract through the general contractor who is prime.

Question 203

Contracts entered into that were initiated through a solicitation require the contractor to inform the customer of their right to cancel the contract within 3 days of the signing. The contract itself must have this information in at least \_\_\_\_\_\_\_ point font and in bold print.
Associated Answers
1	6
2	8
3	10
4	12

Answer 203

3 10 point font

Question 204

Contracts signed at the contractor’s place of business do not qualify the customer to be able to cancel the contract within 3 days.
Associated Answers
1 true
2 false

Answer 204

1 true

Question 205

Contractors who start a project initiated through a solicitation before the customer’s 3 day right to cancel, risk losing their wages, including the materials expended.
Associated Answers
1 true
2 false

Answer 205

1 true

Question 206

hich of the following is NOT a basic element of a contract?
Associated Answers
1	legal purpose
2	offer and acceptance
3	arbitration clause
4	consideration

Answer 206

3 arbitration clause

Question 207

) The details of the contract regarding who, how, what, how much, how many, when, etc., are called its\_\_\_\_\_\_\_\_\_\_\_\_.
Associated Answers
1	provisions or terms
2	clauses
3	addenda
4	stipulations

Answer 207

1 provisions or terms

Question 208

This method of contracting allows for the project to begin before the project's entire specifications have been decided upon.
Associated Answers
1	Construction Management
2	Design Build
3	Fast Track
4	Turnkey

Answer 208

3 Fast Track

Question 209

This method of contracting involves one contract that the owner enters into to build (but not design) the structure with a single contractor.
Associated Answers
1	Single Prime
2	Turnkey
3	Design-Build
4	Construction Management

Answer 209

1 Single Prime

Question 210

In this method of contracting, the owner contracts with a construction manager to schedule and manage construction tasks. The construction manager typically would receive a fee to manage the project from conception to completion.
Associated Answers
1	Turnkey
2	Design-Build
3	Construction Management
4	Fast Track

Answer 210

3 Construction Management

Question 211

This method of contracting is preferred by owners who want to deal with one firm for the entire project. The firm they hire will complete the project from the early design stages to the final completion of the project.
Associated Answers
1	single prime contracting
2	design build contracting
3	construction management system
4	fast track construction

Answer 211

2 design build contracting

Question 212

Which of the following dispute resolution alternatives uses a neutral person to review and render a decision that is binding?
Associated Answers
1	Negotiation
2	Collaboration
3	Mediation
4	Arbitration

Answer 212

4 Arbitration

Question 213

) The primary job of a project manager is to complete the project according to its specifications:
Associated Answers
1	Within budget
2	On Schedule
3	With the expected degree of quality
4	All of the above

Answer 213

4 All of the above

Question 214

) The critical path schedule shows how the tasks on the schedule are inter-related.
Associated Answers
1 true
2 false

Answer 214

1 true

Question 215

By preparing a \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ project managers will better understand the cash needed at the intervals that the monies will be disbursed.
Associated Answers
1	Preliminary cash flow schedule
2	budget
3	tracking schedule
4	none of the above

Answer 215

1 Preliminary cash flow schedule

Question 216

) In order to schedule time slots for all of the individual tasks involved in completing a project, first we need to identify each \_\_\_\_\_\_\_\_\_\_\_\_\_\_.
Associated Answers
1	subcontractor
2	phase of the project
3	task
4	all of the above

Answer 216

3 task

Question 217

A major benefit of the critical path method of scheduling is it shows how one project task will be dependent on the completion of other tasks that come before it in a \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.
Associated Answers
1	logical sequence
2	building project
3	orderly fashion
4	desending order

Answer 217

1 logical sequence

Question 218

This chart graphs the starting and finishing times for individual tasks that make up the project.
Associated Answers
1	bar chart
2	gantt chart
3	duration chart
4	either A or B

Answer 218

4 either A or B

Question 219

When two contracting firms unite their forces to construct a project it is called a:
Associated Answers
1	partnership
2	merger
3	conglomerate
4	joint venture

Answer 219

4 joint venture

Notes: Some states even require that joint ventures purchase an additional license.

Question 220

The \_\_\_\_\_\_\_\_\_ method is an analysis that provides a diagram that depicts the longest continuous sequence of activities in a project, determining the overall amount of time to complete a project.
Associated Answers
1	Bar Chart
2	Gantt Chart
3	Critical Path
4	Calendar Scheduling

Answer 220

3 Critical Path

Question 221

\_\_\_\_\_\_\_\_\_\_\_\_\_ is a form of managing tasks that is best for simple, less complicated projects. It enables the contractor to link specific tasks to a date, manage deliveries, payments and employment schedules in a very simple, straightforward way.
Associated Answers
1	Gantt Charting
2	Critical Path method
3	Calendar scheduling
4	Queue Scheduling

Answer 221

3 Calendar scheduling

Question 222

) In a construction project, \_\_\_\_\_\_\_\_\_ time is the amount of time that a task in a project network or path can be delayed without causing a delay to other, subsequent tasks or to the overall completion date.
Associated Answers
1	Contingency
2	Float
3	Duration
4	Flex

Answer 222

2 Float

Question 223

Cash receipts, customer invoices and time cards are all examples of:
Associated Answers
1	Important records
2	Source Documents
3	Bookkeeping
4	Accounting

Answer 223

2 Source Documents

Question 224

Where is information from a business journal posted?
Associated Answers
1	General ledger
2	Log book
3	Financial statement
4	Balance sheet

Answer 224

1 General ledger

Question 225

Which of the below choices is an example of a financial statement?
Associated Answers
1	Balance Sheet
2	Income Statement
3	Statement of Cash Flows
4	All of the above

Answer 225

4 All of the above

Question 226

An example of a fixed asset would be:
Associated Answers
1	cash
2	machinery
3	accounts receivable
4	prepaid expenses
Notes:

Answer 226

2 machinery

Question 227

What would be an example of a fixed liability?
Associated Answers
1	electric bill
2	lumber package invoice
3	troublesome relative
4	mortgage on a company's building

Answer 227

4 mortgage on a company’s building

Question 228

This is the time required to purchase or manufacture a company's inventory, sell the product, and collect the revenue.
Associated Answers
1	purchasing cycle
2	operating cycle
3	scheduling cycle
4	none of the above

Answer 228

2 operating cycle

Question 229

An income statement is sometimes called a:
Associated Answers
1	balance sheet
2	profit and loss statement
3	statement of cash flow
4	general ledger

Answer 229

2 profit and loss statement

Question 230

What financial statement will provide a company's net worth?
Associated Answers
1	balance sheet
2	general ledger
3	assets and liabilities statement
4	net worth statement

Answer 230

1 balance sheet

Question 231

Which of the following methods of accounting is used to record income at the time it is earned?
Associated Answers
1	depreciation method
2	amortization method
3	cash method
4	accrual method

Answer 231

4 accrual method

Question 232

An example of a current asset is \_\_\_\_\_\_\_\_\_\_\_ .
Associated Answers
1	cash
2	inventory
3	real estate
4	both a and b

Answer 232

4 both a and b

Question 233

\_\_\_\_\_\_\_ writes off the depreciable value of an asset at a uniform rate throughout its usable life.
Associated Answers
1	Accelerated depreciation
2	Uniform rate depreciation
3	Fixed depreciation
4	Straight-line depreciation

Answer 233

4 Straight-line depreciation

Question 234

Profitability ratios show the relationship between income or revenues versus investments and assets.
Associated Answers
1 true
2 false

Answer 234

1 true

Question 235

The process of allocating the cost of a tangible fixed asset over the asset’s useful life is called \_\_\_\_\_\_\_\_\_\_\_\_\_ .
Associated Answers
1	appreciation
2	depreciation
3	accrual
4	none of the above

Answer 235

2 depreciation

Question 236

If a company has $37,525 in current assets and $12,672 in current liabilities, what is this company's liquidity ratio?
Associated Answers
1	2.96
2	3.32
3	3.63
4	3.87

Answer 236

1 2.96

Notes: Current Assets divided by Current Liabilities = Liquidity Ratio

Question 237

If a company has debt totaling $128,000 and total assets of 463,250 what is this company's debt ratio?
Associated Answers
1	.252
2	.265
3	.276
4	.31

Answer 237

3 .276

Notes: Total Debt divided by Total Assets = Debt Ratio

Question 238

If a company has current assets totaling $257,525 and an inventory value of $25,617 and current liabilities of $65,717, what is this company's quick ratio?
Associated Answers
1	3.17
2	3.25
3	3.35
4	3.52

Answer 238

4 3.52

Notes: (Current Assets - Inventory) divided by Current Liabilities = Quick Ratio

Question 239

Last year our company produced revenues totaling $865,125 and we secured a net income of $265,463. What is our profitability ratio for last year?
Associated Answers
1	.306
2	.318
3	.32
4	.378

Answer 239

1 .306

Notes: Net Income divided by Revenues = Profitability Ratio

Question 240

The needed cash flow for a project should be provided for in the written terms of a contract to insure the needed monies are available to pay for expenses as the job progresses.
Associated Answers
1 true
2 false

Answer 240

1 true

Question 241

A financial statement that provides a summary of the company’s revenues and expenses over a given period of time is:
Associated Answers
1 balance sheet
2 income statement or profit and loss statement
3 statement of cash flows
4 any of the above

Answer 241

2 income statement or profit and loss statement

Question 242

A creditor's claims on a company's assets is called a\_\_\_\_\_\_\_\_\_\_\_.
Associated Answers
1	disbursement
2	cash flow
3	liabilitity
4	any of the above

Answer 242

3 liabilitity

Question 243

Workers Compensation is paid for by the employer, no monies are deducted from the employees pay check to help pay for this expense.
Associated Answers
1 true
2 false

Answer 243

1 true

Question 244

An invoice is received from a supplier dated June 1st in the amount of $4275.24, the payment terms are 5/10 EOM. How much does the contractor owe if the payment is made on June 8th?
Associated Answers
1	$4275.24
2	$3847.72
3	$4061.48
4	$4270.24

Answer 244

3 $4061.48

Notes: 5 percent discount if paid within 10 days of the invoice date or the total amount is due at the end of the month

Question 245

The \_\_\_\_\_\_\_\_\_\_ method of accounting records income when services occur (at the time of invoicing the customer), and expenses are recorded at the time they are incurred ( when invoices are received).
Associated Answers
1	cash
2	accural
3	cash flow
4	posting

Answer 245

2 accural

Question 246

Your balance sheet is used to describe the financial status of your business:
Associated Answers
1	as of a specific date
2	for the fiscal year
3	for the calander year
4	for a particular

Answer 246

1 as of a specific date

Question 247

The formula for calculating working capital is:
Associated Answers
1 Assets minus liabilities
2 Assets divided by liabilities
3 Current assets minus current liabilities
4 Net income divided by revenues

Answer 247

3 Current assets minus current liabilities

Question 248

aborers’ salaries are typically direct cost.
Associated Answers
1 True
2 False

Answer 248

1 True

Question 249

Which of the following methods of accounting is used to record income at the time it is earned?
Associated Answers
1	depreciation method
2	amortization method
3	cash method
4	accrual method

Answer 249

4 accrual method

Question 250

Prompt Payment Law requires owners to pay contractors within \_\_\_\_\_\_\_\_ days of receiving the contractor's written request if the conditions of the contract have been met by the contractor.
Associated Answers
1	10
2	20
3	30
4	60

Answer 250

3 30

Question 251

) A system of recording and summarizing business and financial transactions is called \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.
Associated Answers
1	Record-keeping
2	Tracking
3	Accounting
4	Economics

Answer 251

3 Accounting

Question 252

A company's cash, accounts receivable, inventory, notes receivable and prepaid expenses are examples of \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.
Associated Answers
1	Asset
2	Current Assets
3	Capital
4	Liability

Answer 252

2 Current Assets

Question 253

Accounting is based on five basic account types:
Associated Answers
1 Assets, Liabilities, Income, Disbursements and Payroll
2 Assets, Liabilities, Equity, Income and Expenses
3 Income, Expenses, Revenues, Costs and Liabilities
4 Liquidity, Equity, Liabilities, Income and Capital

Answer 253

2 Assets, Liabilities, Equity, Income and Expenses

Question 254

1/10 Net 30 means:
Associated Answers
1 1% discount if paid by the 10th day of the month after the purchases are shipped
2 1% discount if paid within 10 days; otherwise the entire amount is due within 30 days
3 Payment is due 10 days after receiving the invoice
4 Cash on Delivery

Answer 254

2 1% discount if paid within 10 days; otherwise the entire amount is due within 30 days

Question 255

What Federal Form do employers have new employees complete in order for the employer to determine the correct amount of federal income tax to withhold from the employee's paycheck?
Associated Answers
1	W-2
2	W-4
3	1040
4	1065

Answer 255

2 W-4

Question 256

) What federal act provides for the lawful deduction of an employee’s wages to pay for old age, survivors, disability and hospital insurance?
Associated Answers
1 Social Security Act
2 Federal Insurance Contributions Act (FICA)
3 Medicare Act
4 Retirement Act

Answer 256

2 Federal Insurance Contributions Act (FICA)

Question 257

Both employers and employees pay federal unemployment taxes.
Associated Answers
1 true
2 false

Answer 257

2 false

Question 258

Federal law generally requires that sole proprietors, partners, and S-Corporations make estimated tax payments if they expect to owe at least \_\_\_\_\_\_\_ in taxes for the current year.
Associated Answers
1	$1,000
2	$1,500
3	$2,000
4	$5,000

Answer 258

1 $1,000

Question 259

You must pay self-employment taxes if your net earnings were \_\_\_\_\_\_\_\_ or more.
Associated Answers
1	$400
2	$500
3	$1,000
4	$1,500

Answer 259

1 $400

Question 260

As an employer, you are responsible for filing which of the following employment taxes?
Associated Answers
1	federal unemployment tax
2	federal income tax
3	social security tax
4	all of the above

Answer 260

4 all of the above

Question 261

What IRS publication provides employers with tables providing the necessary information for appropriate federal tax deductions?
Associated Answers
1	Circular E
2	Form 1065
3	W-2
4	W-4

Answer 261

Circular E

Question 262

) The only payroll taxes that both the employer and the employee contribute to equally are, Social Security and Medicare.
Associated Answers
1 true
2 false

Answer 262

1 true

Question 263

What type of insurance will protect the contractor for losses due to a fire on his construction project?
Associated Answers
1	All Risk Builders insurance
2	General liability insurance
3	Professional liability insurance
4	None of the above

Answer 263

1 All Risk Builders insurance

Question 264

Any monies paid out by a surety company will need to be paid back.
Associated Answers
1 true
2 false

Answer 264

1 true

Question 265

quipment in transit, on the premises or at the job site, would typically be covered by:
Associated Answers
1	General liability policy
2	All risk building insurance
3	Equipment floater policy
4	None of the above

Answer 265

3 Equipment floater policy

Question 266

The \_\_\_\_\_\_\_\_\_\_ requires that federal projects valued over $100,000 must produce a performance bond to guarantee completion of the project under the terms of the contract.
Associated Answers
1	Walsh Healy Act
2	Service Contract Act
3	Miller Act
4	None of the above

Answer 266

3 Miller Act

Question 267

What type of insurance covers a builder against theft of materials from a job site?
Associated Answers
1	liability
2	builder's risk
3	workers' compensation
4	homeowners

Answer 267

2 builder’s risk

Question 268

) A bond that insures that the activities on a construction project are the same as the intended activities for which the permit was granted is called a \_\_\_\_\_\_\_\_\_\_\_\_\_\_ .
Associated Answers
1	Contract Surety Bond
2	Permit Bond
3	Surety Bond
4	Performance Bond

Answer 268

2 Permit Bond

Question 269

\_\_\_\_\_\_\_\_\_ is when the homeowner is accepting the risk related to the project, instead of the general contractor.
Associated Answers
1	Home owner insurance
2	Wrap-up Liability insurance
3	Key Man insurance
4	Personal Liability Insurance

Answer 269

2 Wrap-up Liability insurance

Question 270

mployers in Michigan are required to purchase workers compensation insurance for their employees when:
Associated Answers
1 one employee work 35 hours or more in the past 13 weeks
2 when they have 3 or more part-time employees
3 someone gets injured
4 both A and B are correct

Answer 270

both A and B are correct

Question 271

What benefits does workers compensation insurance provide to injured employees?
Associated Answers
1	2/3 wage replacement
2	medical treatment
3	rehabilitation benefits
4	all of the above

Answer 271

4 all of the above

Question 272

What is an insurance policy taken out to cover the financial loss that would arise from the death or extended incapacity of the member of the business specified on the policy.
Associated Answers
1	liability insurance
2	workers compensation insurance
3	key man insurance
4	any of the above

Answer 272

3 key man insurance

Question 273

What type of bond guarantees that the general contractor will pay the subcontractors, laborers and material suppliers associated with the project. It guarantees that the project will have no claims or liens placed against it.
Associated Answers
1	bid bond
2	performance bond
3	payment bond
4	any of the above

Answer 273

3 payment bond

Question 274

n owner shall provide a complete \_\_\_\_\_\_\_\_\_\_\_\_\_\_ to a contractor, subcontractor, supplier or laborer who has requested it.
Associated Answers
1	Notice of Furnishing
2	Letter of Authority
3	Notice of Commencement
4	Formal Contract

Answer 274

3 Notice of Commencement

Question 275

ubcontractors and suppliers must provide a Notice of Furnishing either personally or by certified mail within \_\_\_\_\_\_ after first furnishing materials.
Associated Answers
1	7 days
2	10 days
3	20 days
4	30 days

Answer 275

3 20 days

Question 276

contractor must provide a Sworn Statement when \_\_\_\_\_\_\_\_\_\_\_.
Associated Answers
1	payment is due
2	when the contractor requests payment
3	when an owner demands ot see it
4	all of the above

Answer 276

4 all of the above

Question 277

A \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ is used when a contractor is going to be collecting more funds as the job progresses, but is releasing his lien right to the extent of money owed to this point. (The actual payment has been made.)
Associated Answers
1	Full Unconditional Waiver
2	Full Conditional Waiver
3	Partial Unconditional Waiver
4	Partial Conditional Waiver

Answer 277

3 Partial Unconditional Waiver

Question 278

Court procedings to enforce a construction lien must be held within \_\_\_\_\_\_\_\_\_\_ of the date the lien was recorded.;
Associated Answers
1	90 days
2	6 months
3	1 year
4	18 months

Answer 278

3 1 year

Question 279

) In order for foreclosure, the judge can give the defendant a time limit to pay as ordered, not to exceed \_\_\_\_\_\_\_\_\_.
Associated Answers
1	30 days
2	90 days
3	4 months
4	6 months

Answer 279

3 4 months

Question 280

Companies with fewer than 10 employees are not required to prepare a written hazard communication program, even though hazardous chemicals are being used.
Associated Answers
1 False
2 True

Answer 280

1 False

Question 281

) The duties of the DEQ include which of the following?
Associated Answers
1	issuing permits
2	conducting inspections
3	enforcing environmental laws
4	all of the above

Answer 281

4 all of the above

Question 282

Employers are required to post OSHA Form \_\_\_\_\_\_\_ (Summary of Work-Related Injuries and Illnesses) in a conspicuous spot.
Associated Answers
1	300
2	301
3	300A
4	301A

Answer 282

3 300A

Question 283

MIOSHA records must be kept by the employer for at least ____ years following the year to which they pertain. Exposure and medical records must be kept for_____ years.

Associated Answers
1	3 and 7
2	5 and 15
3	5 and 30
4	3 and 30

Answer 283

5 and 30

Question 284

These are violations committed with an intentional disregard of, or plain indifference to the requirement of the MIOSHA regulations. The initial penalty is a minimum of $5,000 and a maximum of $70,000.

Associated Answers
1	Repeat
2	Serious
3	Ongoing
4	Willful

Answer 284

4 Willful

Question 285

) The minimum working age for a young person is \_\_\_\_\_ .
Associated Answers
1	12
2	14
3	16
4	17
Notes:

Answer 285

2 14

Question 286

) The \_\_\_\_\_\_\_\_\_\_\_\_ establishes minimum wage and overtime compensation standards.
Associated Answers
1	Davis-Bacon Act
2	Service Contract Act
3	Wage Garnishment Law
4	Fair Labor Standards Act

Answer 286

4 Fair Labor Standards Act

Question 287

) The purpose of the \_\_\_\_\_\_ is to document that each new employee (both citizen and non-citizen) hired after November 6, 1986 is authorized to work in the United States.
Associated Answers
1	I-9 form
2	W-2 form
3	W-4 form
4	1040 EZ form

Answer 287

1 I-9 form which employers must keep record of completed forms for 3 years after date of hire

Question 288

The Americans with Disabilities Act applies to employers with \_\_\_\_ or more employees.
Associated Answers
1	7
2	11
3	12
4	15

Answer 288

4 15

Question 289

The ____________ prohibits firing an employee whose pay is garnished for payment of a single debt.
Associated Answers
1 Contract Work Hours and Safety Standards Act
2 Wage Garnishment Law
3 Walsh-Healey Public Contracts Act
4 Service Contract Act

Answer 289

2 Wage Garnishment Law

Question 290

Is it prohibited for a 16 year old to do roofing, excavation, or demolition work?
Associated Answers
1 Yes
2 No

Answer 290

1 Yes

Question 291

) The \_\_\_\_\_\_\_\_\_\_\_\_ requires payment of prevailing wage rates and fringe benefits on federally financed or federally assisted CONSTRUCTION.
Associated Answers
1	Fair Labor Standards Act
2	Walsh Healy Contracts Act
3	Davis-Bacon Act
4	Service Contract Act

Answer 291

3 Davis-Bacon Act