FL Business and Finance Practice Test

The department, for the boards under its jurisdiction, shall have the authority to close and terminate deficient license applications files ______ year (s) after the board or the department notifies the applicant of the deficiency. A. 1 B. 2 C. 3 D. 4

Answer B. 2 FS455.203.10.a

Which of the following is NOT exempt from chapter 489? A. An employee of a licensee who is subordinate of a construction licensee acting within the scope. B. Owners of a property with a cost of $85,000. C. Contractors in work on bridges and roads. D. Anybody doing work of a minor nature - less $1,000 or less.

Answer B. Owners of property $85,000 - CM 2-63 489.103 Limit is $75,000.

When a part of each progress billing is held back, it's called: a. Accrual. b. Retainage. c. Deferred income. d. Backup withholding.

Answer B. Retainage Tab page 23

A project is to be considered abandoned after _________ days if the contractor just terminates the project without notification to the owner and without cause. A. 30 B. 60 C. 45 D. 90

Answer D. 90 - CM 2-96 , 489.129.1.j

What can the Board do with the $5.00 fee included in the current licensee fee? a. Educate the public regarding unlicensed activity b. Transfer the funds to the State of Florida's general budget account c. Subsidize the application fee for applicants from the indigent community d. Reimburse the public when damaged by unlicensed workers

Answer: a. Educate the public regarding unlicensed activity FS455.2281 UNLICENSED ACTIVITIES AND FEES

Which is of the following is not true regarding the requirement to notify the State? a. Notification of address change must be made within 15 days b. Notification of address change must be made within 30 days c. Notification of change of affiliation of qualifying agent must be made within 30 days d. Notification of change of certificate holder or registrant must be made within 45 days

Answer: a. Notification of address change must be made within 15 days FALSE 30 days CM 2-159 INDEX/LICENSING/FINANCIAL RESPONSIBILITY

Which of the following is not true regarding posting a Notice of Commencement? a. When a loan exists, it is the contractor's responsibly to post the notice b. It may be posted no sooner than 90 days prior to the start of work at the site c. The owner is obligated to post a copy at the site d. The posted notice always needs to remain on site

Answer: a. When a loan exists, it is the contractor's responsibly to post the notice INDEX/LIEN/NOTICE OF COMMENCEMENT/

What would be the total maximum allowable penalty for an employer who committed a willful or repeated violation of OSHA regulations and failed to comply with OSHA mandated posting requirements? a. $124,471 b. $136,942 c. $142,180 d. $124,942

Answer: b. $136,942 INDEX/ OSHA/PENALTIES - Note question has 2 penalties 124471 plus 12471 = 136942

Where should OSHA records be located when employees are not associated with a fixed establishment? a. At the nearest fixed location b. At field offices or mobile base operation locations c. At the corporate office d. Where the employees report to work each day

Answer: b. At field offices or mobile base operation locations CM 7-15 INDEX/OSHA/LOCATION OF RECORDS

What penalty is imposed for failure or refusal of an employer or carrier to report any form or notice associated with a death as required by Chapter 440, Workers Compensation Laws? a. Fine not to exceed $1000 b. Fine not to exceed $1500 c. Fine not to exceed $500 d. Fine not to exceed $500 for the first failure and not to exceed $2000 for each subsequent failure

Answer: c. Fine not to exceed $500 CM 5-54/ 6-165 INDEX/WC/PENALTIES & ACTS/WC ACT

What method allows a business to take advantage of discounts offered by their suppliers for early payment of invoices? a. Prepayment ledger b. Quantity discounts c. Open invoice method d. Discount invoice accounting method

Answer: c. Open invoice method CM 3-47 INDEX/INVOICE DISCOUNTS

First aid cases, according to the Florida Worker's Compensation Law, requiring treatment on site that do not require medical treatment for which charges will be incurred, and do not disable the employee for more than , do not need to be reported. A. 3 hours B. 8 hours C. 5 days D. 7 days

Answer: 3 hours - ???

According to Contractors Manual, CSI Master format divides the specifications into how many specific divisions?

Answer: 50 CM 10-9 INDEX/CSI MASTERFORMAT

According to the Statutes of Limitations, how long does a person have to bring action on a wage recovery claim? A. 2 yrs B. 5 yrs C. 7 yrs D. 10 yrs

Answer: A - 2 years - CM 5-30

Which of the following is true regarding a general contractor who is constructing the main sanitary sewer collection system, the storm collection system, or the water distribution system on new site development work, but not including continuation of utility lines? A. the GC may do the work himself. B. the GC must hire a plumbing subcontractor C. the GC must hire a specialty subcontractor D. the GC must hire an underground utility subcontractor.

Answer: A - the GC may do the work himself - CM 2-8 489.113.3.d.e

How many copies of the plans and specifications shall the contractor maintain on site? A. 1 B. 2 C. 3 D. 4

Answer: A. 1 - AIA201 2.3.6

The Florida's Workers'Copmpensation Act is applicable to an employer in the construction industry who employes ______________ or more full or part time employees. A. 1 B. 2 C. 3 D. 4

Answer: A. 1 6-5 and 5-54

A contractor must serve a copy fo the claim of lien on the owner and lender (if any) within how many days of the date the claim of lien is recorded? A. 15 B. 30 C. 60 D. 90

Answer: A. 15 CM 9-30

Within how many days of the date the claim of lien is recorded, must a contractor serve a copy of the claim of lien on the owner and lender (if any)? A. 15 B. 30 C. 60 D. 90

Answer: A. 15 CM 9-30 INDEX/LIEN/HOW TO SERVE

OSHA records must be maintained by which type of employer? A. individuals no employees B. self-employed persons with one or more employees C. employers of household workers D. religious establishments

Answer: B. self-employed persons with one or more employees. CM 7-7 INDEX/OSHA/EXEMPT EMPLOYERS

A secondary qualifying agent is responsible for ______________________. A. the financial matters of the company B. the supervision of field work at sites where the agent's license was used to obtain the building permit. C. the supervision and financial matters of the company where the agent's license was used to obtain the building permit. D. the supervision of all operations of the business organization and for all field work.

Answer: B. the supervision of field work where agent's license was used to obtain permit - CM 2-22,/53 489.1195

Beneficiaries of a worker killed in a workplace accident are entitled to ______________________. A. 2/3s the employee wages for life with 5% annual cost of living. B. up to $100,000 in death benefits and up to $5,000 in funeral costs. C. a $5,000 death benefit and $500 in funeral costs D. 2/3s the employees wages for 104 weeks plus up to $5,000 in funeral costs.

Answer: B. up to $100,000 in death benfits and up to $5,000 in funeral costs - CM 6-15

In 90 days, a recorded Notice of Commencement will expire in unless _________________. A. the 1st inspection has not been made. B. work has commenced C. the first payment to contractor is released. D. Notice to Owners are filed.

Answer: B. work has commenced - CM 9-12 INDEX/NOTICES/

Value engineering and cost savings, returning money to both the owner and the contractor, are advantages of which type of contract? A. cost plus B. lump sum C. guaranteed maximum price D. unit price

Answer: C - guaranteed maximum price - CM 8-8 INDEX/CONTRACTS

When developing a project schedule, which of the following should not influence the development of the project shedule? A. manpower B. equipment schedules C. completion date D. activity durations

Answer: C Completion date - CM 10-63

What does paying off current liabilities accomplish? a. Increases current assets and liabilities b. Reduces the current ratio c. Reduces current assets and liabilities d. Increases net profit

Answer: C Reduces current assets and liabilities - Index/Liquidity Test BGA pg 175

To reduce workers compensation premiums, an employer may don any of the following EXCEPT. A. participated in an insurance pool. B. use a wrap-up policy C. participates in a deductible program D. require employee to pay part of the premium.

D. require employee to pay part of the premium - CM 6-9 INDEX/WC/INSURANCE

What accounting method recognizes income most exactly? a. Percentage - of - Completion b. Completed - Contract c. Capitalized Cost Method d. Earned Income

b. Completed - Contract BGA 25 INDEX/

What is a reserve of bad debt? a. A reduction in your current assets b. A general ledger entry that reflects a budgeted reserve for bad debts c. A loss of cash on hand d. Both A and B

ANSWER: d. Both A and B BGA 68 Index/Bad Debt

If, at the end of a quarter, a contractor's total FUTA tax is $150, the contractor _____________________. A. may add the tax to the amount for deposit for the next quarter B. must deposit the tax during the 1st month after the quarter. C. must deposit the tax during the 2nd month after the quarter D. must deposit the tax during the 3rd month after the quarter.

Answer: A. Add the tax for the next quarter - CM 3-183

Which of the following is a first aid treatment not to be recorded on an OSHA # 200 log? A. administering a tetanus immunization B. administering a rabies immunization C. application of bandages or a butterfly dressing in lieu of sutures. D. a minor accident involving a loss of consciousness.

Answer: A. Administering a tetanus immunization - CM 7-24

What type of insurance is issued to protect the contractor for loss of earnings or revenue as a result of damage to or destruction of buildings or equipment? A. Business Interruption B. Business Floater C. General Liability D. Contractor Protective Liability

Answer: A. Business Interruption - CM 4-8

Supplementary conditions of the contract documents include which of the following? A. jobsite office requirements B. correction of work C. coordination of work D. shop drawing requirements

Answer: A. jobsite office requirements - CM 10-12/13

A contractor who receives, as initial payment, money totaling more than 10% of the contract price for any repairs, restoration, improvement, or construction to residential real property must apply for permits within ____ days? A. 7 B. 10 C. 30 D. 45

Answer: B. 10 CM 2-90 INDEX/LICENSING/MONEY RECEIVED

The Secretary of Labor has prohibited the employment of anyone in construction under the age of: A. 14 B. 16 C. 17 D. 18

Answer: B. 16 CM 5-30 Table Construction Industry Child Labor Restrictions

The IRS will deem the deposits for SS, Medicare and FIT taxes to be timely if the taxpayer estblishes that it was mailed in the US at least ______ before the due date? A. 1 day B. 2 days C. 3. days D. 4 days

Answer: B. 2 days - CM 3-156 Circ E/Calendar

Employers are required by regulation to keep so called "hard records" such as payroll, employment contracts or agreements, and sales and purchase records for at least _______________. A. 2 B. 3 C. 4 D. 5

Answer: B. 3 - CM 5-30 INDEX/WAGES/RECORD KEEPING

You must send a sworn statement of account within _____________ when making a claim of lien. A. 90 days after demand of statement has been made B. 30 days after demand of statement has been made C. 45 days before demand of statement has been made D. 15 days before demand of statement has been made

Answer: B. 30 days after demand of statement has been made CM 9-36 INDEX/LIENS/SWORN STATEMENTS

If the Contractor does not pay the Subcontractor through no fault of the Subcontractor, within seven days of the time payment should be made as provided on their Agreement the Subcontractor may upon additional days written notice to the Contractor stop the Work of the Subcontract. A. 14 B. 7 C. 5 D. 3

Answer: B. 7 AIA 401.4.8

When considering the location of your office, which of the following is not a consideration? A. Zoning Ordinances B. Demographic makeup of community C. Building Permits D. Flood Prone Area Maps

Answer: B. Demographic Makeup - CM 1-15

A person may engage in business under a fictitious name by registering the name with the _______________. A. Construction Licensing Board B. Division of Corporations C. Dept of Business and Professional Regulation D. Florida Dept of Sales Tax Division

Answer: B. Divisions of Corporations - CM 1-15

Budgets are meant to do which of the following? a. Forecast expenses and income b. Measure actual performance c. Forecast net profit d. Measure projected expenses

Answer: B. Measure actual performance BGA 144 Index/budget

A building inspection may be denied, according to Contractors Manual, for lack of _____________________. A. an authorized contractor's agent on the job B. a recorded Notice of Commencement posted on the job site C. an inspection box provided to protect job documents D. notification to the owner of the pending inspection.

Answer: B. a recorded Notice of Commencement posted on the job site. - CM 9-77 713.135.1.d

Which of the following is not a depreciation method? A. declining balanc e depreciation B accumulated cost depreciation C. sum of the years digits depreciation D. straight line depreciation.

Answer: B. accumulated cost depreciation BGA 162 - its an accounting method not a depreciation method

What is the term for expenses that are actually paid but not recognized as paid until a later period? A. post paid costs B. deferred assets C. accrued expenses D. long-term liabilities

Answer: B. deferred assets - BGA 242

An employer who willfully misrepresents an employee as an independent contractor for the purpose of avoiding Worker's Compensation premiums _______________. A. shall be fined 10% of the bid B. may be assessed a penalty of up to $5,000.00 C. shall be assessed a penalty of not less than $5,000.00 D. may be assessed triple premiums and a fine of $1,000.00

Answer: B. may be assessed a penalty of up to $5,000.00 CM 6 ?

The Florida Unemployment law , states that sole proprietors are ________ A. considered when determining an employers liability B. not considered as eligible for unemployment compensation C. required to have unemployment compensation insurance D. exempt if their gross is $10,000 or more a year.

Answer: B. not eligible for unemployment compensation

Which of the following documents should be submitted to and approved by the contractor prior to commencement of work by a subcontractor on a job? A. affidavit supporting subcontractor's scope of work, performance bond (if required) and insurance certificate. B. performance bond (if required) subcontract agreement and insurance certificate. C. insurance certificate, subcontract agreement and affidavit supporting scope of work. D. subcontract agreement , affidavit supporting subcontrac tor's scope of work and performance bond (if required)

Answer: B. performance bond, subcontract agreement and insurance certificate - CM 10-80

All of the following are ways in which bid shopping may be prevented except ________________. A. requiring bidders to list subcontractors B. placing a time limit on bid acceptance C. using bid depositories D. including special provisions in the bid

Answer: B. placing a time limit on bid acceptance ?

Which of the following is NOT true about corporations? A. With an "S" corporation there is no corporate tax - you pay taxes individual. B. Closely held corporations operate more informally. C. There is no limit of shareholders for either a C-type or S-type Corpo. D. C-type corpo have the possibility of double taxation.

Answer: C There is no limit of shareholders - CM 1-13

The bonding cost for a class "B" contract of $900,000 will cost ________________. A. $9,000 B. $10,000 C. $12,500 D. $22,500

Answer: C. $12,500 CM 4-18 Graduated scale: 1st- 100x25%+ 2,500 2nd 400 x15%+ 6,000 3rd 400x 10%=4,000 Total $12,500

Any violation of rules regarding reporting accidents to the Division of Workers' Compensation can subject the employer to a penalty of ________________. A. $1,000 B. $2,500 C. $500 D. $5,000

Answer: C. 500 CM 6-12 INDEX/WC/RECORD KEEPING

The owner must prove financial capability no later than ________ days prior to the expiration of the time for withdrawal of bids. A. 3 B. 5 C.7 D.30

Answer: C. 7 - AIA 701.6.2

The subcontractor agrees that all work shall be done subject to the final approval of the ______________________. A. architect B. contractor C. both A & B are correct D. none of the above

Answer: C. A & B are correct - AIA 401.4.2.5

Given: A contractor hires a day laborer at a rate of $35.00 for one day's work. The contractor uses the laborer for six days in one work week. The laborer average 8 1/2 hours of work per day. The laborer is entitled to ____________________________. A. A gross pay of 199.45 B. A gross pay of 210.00 C. A gross pay of 232.66 D. A gross pay of 290.97

Answer: C. A gross pay of 232.66 Formula: Pay for 6 days = 210 6 days x 8.5 hours = 51 hours 210/51= 4.12 per hour - 40 hrs at 4.12 = 164.80 4.12 x 1.5 = 6.18 6.18 x11 hours OT = 67.98. 164.80+67.98 = 232.78

Categories on the income statement include all the following except ___________________. A. Revenues B. Expenses C. Inventory D. Income

Answer: C. Inventory - CM 3-30

What are premiums ofr builder's risk insurance based on? A. minimum value at risk B. actual value at risk C. maximum value at risk D. quality of construction in place

Answer: C. Maximum value at risk - CM 4-15

If a construction company's federal employment taxes for the quarter ending Sept 30th have been paid on time, the IRS Form 941 for the quarter ending Sept 30th must be filed not later than ________________. A. Oct 10th B. Oct 31st C . Nov 10th D Nov 30th

Answer: C. Nov 10th - CM 3-156

Network analysis consists of many separate but interrelated operations. These are ___________________. A. events B. timetables C. activities D. bar charts

Answer: C. activities - CM 10-70

The architect has the sole responsibility for ordering __________________. A. Change orders B. Construction change directives C. any minor change of work D. any changes whatsoever

Answer: C. any minor change in work - AIA 201 7.1.2

The ______________________ is an estimating method that is NOT recommended for lump sum contracts. A. approximate estimated method B. detailed survey method C. square footage method D. unit price method

Answer: C. square footage method CM 10-12

A non-union contractor is considering the possibilities of a collective union bargaining agreement with the union. What amount of support will the contractor need from employees? A. 10% of employees B. 20% of employees C. Majority status of employees D. Not required to have the support of employees.

Answer: D - Not required to have support of employees. CM 5-14 INDEX/ACTS/LMRA

For the purpose of certification, a passing grade shall be valid only for a period of ________ from the date the list of successful candidates is approved by the board. A. 60 days B. 1 year C. 2 years D. 4 years

Answer: D 4 years - 61G4-16.005 -2017 Contractors Manual, pg 2-182 Index/ Examinations

What is the maximum amount of compensation that a consumer is entitled to if injured on a jobsite due to an unlicensed contractors negligence? A. 2X the amount of damages. B. 2x the amount of damages plus attorney fees. C. 3X the amount of damages D. 3x the amount of damages, plus attorney's fees

Answer: D. 3x the amount plus attorney fees - CM 2-14

Contractor's claims for the cost of services or materials provided due to the Subcontractor"s failure to execute the Work shall require ___________ days written notice prior to the Contra ctor's providing services or materials. A. 2 B. 3 C. 5 D. 7

Answer: D. 7 401.3.4.2

At least ______________ days before the ned of a licensure cycle, the department shall forward notice of pending cancellation of licensure to a delinquent status licensee at the license's last know address of record or email provided to the department. A. 15 B. 30 C. 60 D. 90

Answer: D. 90 - FS455.273.2

Unless otherwise required in the Bidding Documents, the Agreement for the Work will be written on AIA Document ____________. A. A201 B. 401 C. A701 D. A101

Answer: D. A101 - AIA 701 - Article 8

What guaranty does a contractor make through the issuance of a surety bond? a. He will complete the project as per the contract documents b. He will hold the architect harmless for delays c. He will assign any benefits awarded under the bond to his subcontractors d. He will reimburse the surety company if he fails to perform according to contract

Answer: D. He will reimburse the surety company if he fails to perform according to contract. CM 4-12 Index/Surety Bond

All the following are examples of types of offers in construction contracts except _________________________. A. bids B. purchase orders C. proposals D. negotiations

Answer: D. Negotiations CM 8.5

Contracts entered into by unlicensed contractors ________________. A. are immoral B.are illegal C. are enforceable D. are unenforceable

Answer: D. are unenforceable - CM 2-94 489.128

A qualifying agent for a business organization ___________ A. must notify the Construction Licensing board of any change of status within 90 days. B. is not legally qualified to act for the business in all matters connected with contracting. C. must notify the Dept of Business Regulations of any change of status within 90 days D. is legally qualified to act for the business in all matters connected with contracting.

Answer: D. is legally qualified to act for the business in all matters connected with contracting. - CM 2-22 489.1195.a INDEX/LICENSING/QUALIFIER

The type of construction contract in which the contractor takes all the risk of cost overruns is: A. cost plus fixed fee contract B. cost plus percentage fee contract C. unit price contract D. lump sum contract

Answer: D. lump sum contract (Fix Price) CM 3-78 INDEX/CONTRACTS/TYPES OF

Which of the following wages would not be subject to Federal Unemployment tax paid by the employer? A. wages paid to an employee of a partnership who is tax exempt B. wages paid to beneficiary or estate during the same calendar year of worker's death C. severance or dismissal pay D. wages paid to a child under the age of 21 employed by parent

Answer: D. wages paid to a child under the age of 21 employed by parent CM 3-156 INDEX/CIRC E FUTA

The application and examination fee for an applicant for certification shall be ______. A. $290 B. $300 C. $335 D. $350

Answer; C 61G4-12.009(1)(a) -pg 2-147 Index/Fees