Business Law & Licensing - Done Flashcards
1 – The employer should get I-9 forms from employees within how many days of hire?
Three days
2 – Your Comprehensive General Liability insurance protects you from which of the below?
1 – Persons not employed by you 2 – Damage to property other than your company 3 – Injury to employees 4* – Both 1 and 2
3 – Which of the below would pay state tax on income generated?
Corporations
4 – Which of the below would not be included in a contract offer?
Sub-contractors
5 – A company must have how many employees before workers’ compensation is required?
Three
6 – Employers must pay Unemployment Insurance taxes on employees how often?
Quarterly
7 – John Smith, an employee of your firm, is paid on a two week pay period, has worked the following schedule:A) Week 1 – Monday - Friday (8 hours each day) and 4 hours on SaturdayB) Week 2 – Monday - Wednesday (8 hours each day) Thursday worked half a day then went home with 4 hrs sick pay and Friday is a paid holiday. What is John’s gross pay for this pay period if he is making $18.40 per hour?
$1,582.40
8 – Where will John’s wages fall on the company’s income statement?
Direct Cost
9 – If you, an owner, want to be guaranteed that your project will be completed according to the plans, specifications, terms and conditions of the contract. What kind of bond would you need?
Performance Bond
10 – John Smith inherited some money and quit his job. He was able to get his limited contractor license and has decided to build a house for him and his family. His potential cost estimate has exceeded $565,000. At this time he is waiting on his building permit so he can begin construction. Has he proceeded?
Correctly - This is for his personal use and does not require a license
11 – Which of the statements below is correct?
1 – Employees should receive a w-2 before January 31 from their employer2 – Sub-contractors should receive a 1099 before January 31 from the general contractor 3 – Both 1 and 2 are true 4 – None of the above
12 – What is the disadvantage of the cash method accounting versus the accrual method of accounting?
Cash method does not match revenue with expenses incurred
13 – If Federal Unemployment tax wage period ends on Saturday June 30th, when is your tax deposit to the government due?
July 31st
14 – What is the definition of Negotiation?
Diplomatic bargaining
15 – Where are the Material Safety Data Sheets (MSDS) originated from?
Provided by the manufacturer of the chemical
16 – The contract bid documents include:
1 – Invitation to bid 2 – Bid Instructions 3 – Bid forms 4* – All of the above
17 – Commercial General Liability Insurance (CGL) covers:
1 – Bodily injury to non-employees 2 – Damage to property not belonging to business 3 – Personal injury, slander, damage to reputation 4 – All of the above
18 – If you accumulate a tax liability of $100,000 or more, you must make your deposit by:
1 – Next banking day
19 – The maximum OSHA fine is:
$70,000
20 – How can you become more competitive in business?
Improve safety
21 – What is more likely to be included in company or general overhead?
Insurance
22 – What is the best method to accurately estimate costs of labor for a job?
Job cost history
23 – Which of the following is not an advantage of a sole proprietorship?
Unlimited personal liability
24 – One of the main reasons that a construction contract could be voided or terminated is:
– A material breach occurs when a party refuses to perform the contract
25 – Which of the following is considered to be part of company overhead?
1 – Bonds 2 – Accounting fees 3 – Office rent 4* – Both 2 and 3
26 – When an employee is voluntary or involuntarily terminated, when shall their wages be paid in full?
Within 48 hours or next regular payday
27 – LLC corporations are like an S corporation, federal income taxes are paid only on income distributed to members as ordinary income.
TRUE
28 – What is a bond?
A three-party contract between the surety, contractor and owner
29 – How long must OSHA records be kept by an employer?
5 years
30 – Who is responsible for paying the Federal Unemployment Tax?
Tax is paid by employer only at a rate of 6.2 percent on first $7,000 paid to employee
31 – What is the terminology used for money withheld from monthly payments to a general contractor or subcontractor til after completion of a project?
Retainage
32 – The Fair Labor Standards Act (FLSA) applies to employers who have ____or more employees.
1
33 – The Fair Labor Standards Act (FLSA) provides that a federal minimum wage of not less than $ 7.25 per hour be paid. What group of people can this minimum be paid less than the federal minimum?
Minors under the age of 20
34 – Employers are required by law to furnish 2 (two) copies of form W-2 to each employee from which taxes has been withheld from the previous year before:
31-Jan
35 – The income statement is sometimes called the profit-and-loss statement.
TRUE
36 – Liabilities are all debt and obligations owed by the business. Current liabilities are debts that will occur and must be paid within ____year.
1
37 – Long term liabilities are debt obligations that extend beyond ___year.
1
38 – An 11 (eleven) month note due during a fiscal year is called:
– Current liability
39 – Determine the debt ratio if company assets are $100,000 and liabilities are $50,000.
0.5
40 – When a General Contractor contracts with a sub-contractor who does not have workers compensation he:
Is completely responsible for workers compensation
41 – Employers must pay matching funds for Social Security tax withheld from the employee’s check which is 6.2 percent up to $ 106,800 of gross pay. Also the employer must pay Medicare tax at 1.45 percent, what is the gross amount for Medicare tax?
Pay on all gross wages – there is no maximum
42 – The General Contractor pays a brick mason $ 1,500 for work he performed on a building. Since this amount was above the $600.00 allowed by law, the Contractor must give him which form:
Form 1099
43 – As a General Contractor you have a project superintendent that is paid $25.00 per hour and has worked 60 hours in a week. He is covered under the Fair Labor Standards Act (FLSA) as a nonexempt employee. He has worked 30 % on Project A and 50% on Project B. The remainder of his time was spent in the main office. How much of his salary should be applied to direct cost of supervision for Project B?
$875.00
Which of the following would not be a fixed asset?
Stocks and bonds
when choosing a CPA to do your accounting work, which of the below should be considered?
A CPA that uses generally accepted accounting practices
46 – If the contractor does not give the owner a written or verbal warranty, then the owner will be left with this type of warranty.
Implied warranty
47 – The time located on a CPM (Critical Path Method) chart for a specific task to the task is known as:
Float time
48 – The late start time minus the early start time on a CPM (Critical Path Method) chart is called:
Total float
Which of the following best describes working capital?
Current assets minus current liabilities
50 – A sub-contractor working for a general contractor on a state financed project has not been paid and wishes to submit a claim against the contractor’s payment bond. What is the time period for doing this?
120 days after last furnishing labor or materials
51 – Which of the following scheduling methods would be the most easier to read?
Calendar method
52 – Materials on hand that are stored on a construction project would be listed on the balance sheet under which of the below?
Current asset
53 – A contract must be written if it pertains to:
Real estate or land
54 – Which of the below would not show up on a balance sheet?
Revenue
55 – You have an office trailer on a construction project that has been used on multiple projects, which of the below would it be listed on?
Company overhead
56 – An employee is injured covered under workman’s compensation, which of the below injury would amount to the longest 2/3 weekly compensation for the employee?
Loss of an arm
57 – When you have a broken line on a CPM (Critical Path Method) schedule between two tasks, this broken line represents _____time between the two activities.
Slack or float
58 – A company has current assets of $250,000 and current liabilities of $ 180,000. Their fixed assets are $ 1,500,000 and long term debt is $750,000. Their bonding capacity is 10 times their working capital, what is their bonding capacity.
$700,000
59 – What does the letter “i” on a CPM (Critical Path Method) Schedule indicate?
Start of an activity
60 – What does the letter “j” on a CPM (Critical Path Method) Schedule indicate?
End of an activity
61 – The North Carolina Employment Security Law says that all contractors are required to pay unemployment tax if:
1 – Have one or more employees for 20 weeks during a calendar year 2 – Pay $1,500 in wages in any calendar quarter during a calendar year 3* – Both 1 and 2 4 – Neither of the above
62 – What is the normal warranty period for a construction project?
12 months
63 – What would be the total cost of workman’s compensation insurance for a company if the main office salary was at $125,000 at $1.20 per hundred and the field salaries were $250,000 at $8.50 per hundred?
$22,750
