VA BUSINESS' EXAM PRACTICE Questions and Answers Latest Updates 2024 Grade A+, Exams of Business Economics

Download VA BUSINESS' EXAM PRACTICE Questions and Answers Latest Updates 2024 Grade A+ and more Exams Business Economics in PDF only on Docsity! VA BUSINESS' EXAM PRACTICE Questions and Answers Latest Updates 2024 Grade A+ A designated employee should be? a) any full time worker b) At least 18 years old, full time employee, has passed required examination c) at least 18 years old and 5 years experienced for Class A d) the owner - Answer- b) At least 18 years old, full time employee, has passed required examination A contractor does not notify a change of address and so does not receive a timely Notice of Renewal. Who is responsible when the contractor does not renew his license on time? a) USBC b) OSHA c) The Licensed Contractor d) DPOR - Answer- c) The Licensed Contractor If a contractor earns more than $___________ per year, then the contractor requires a Class A license. a) $120,000 b) $7,500 c) $750,000 d) $150,000 - Answer- c) $750,000 What is the initial Recovery Fund fee? a) $200 b) $50 c) $0 d) $25 - Answer- d) $25 If a contract awards more than $_____________ per project, the contractor requires a Class A license. a) $120,000 b) $7,500 c) $750,000 d) $150,000 - Answer- a) $120,000 An erosion control conservation plan needs to be approved within ________________ days. a) 18 days b) 60 days c) 29 days d) 45 days - Answer- b) 60 days Where do you go to file an appeal of a violation to the USBC provisions? a) None because there is no appeal b) To OSHA c) to the court d) to the LBBCA (Local Board of Building Code Appeals) - Answer- d) to the LBBCA (Local Board of Building Code Appeals) A contractor is required to submit a renewal within_______ days of the expiration date? a) 20 b) 30 c) 50 d) 180 - Answer- b) 30 Who can file a complaint against a contractor (under the Recovery Fund)? a) Residential property owner b) DPOR c) any person d) only the other part of the contract - Answer- a) Residential property owner What is the required when changing the form of entity from a sole proprietorship to corporations? a) nothing because the licensee is the same b) a new license c) pay the fee only d) take a new exam - Answer- b) a new license What is the maximum fund allowed for a single contractor (per biennium)? a) $20,000 b) $7,500 c) $40,000 d) $120,000 - Answer- c) $40,000 What is the maximum amount that can be paid out on behalf of a single contractor? a) $120,000 b) $40,000 c) $10,000 d) $20,000 - Answer- b) $40,000 A license was issued on 10/15/2021. The expiration date is ____________ a) 10/15/2022 b) 10/01/2022 c) 10/31/2022 d) 11/01/2022 - Answer- c) 10/31/2022 A code official can begin legal proceedings against a contractor with a minimum of how many violations within one calendar year for work without a permit: a) Three b) Four c) Five d) Six - Answer- a) Three Where must a building permit be posted? a) any place, it doesn't matter b) at the building site c) at the architect's office d) at the secretary office - Answer- b) at the building site A new building may be used after ____________ is issued. a) as build drawing b) canceled billed letter c) certificate of safety by the architect d) certificate of occupancy - Answer- d) certificate of occupancy Any issued permit shall become invalid if work is not commenced within _______ months after issuance. a) 7 b) 6 c) 3 d) 10 - Answer- b) 6 A notification that funds are due is issued, but the funds are not paid. After a second notice, the funds must be pain in ________ days. If there is still no payment, then the license is _________________. a) 45 revoked b) 30, revoked c) 45, suspended d) 30, revoked - Answer- b) 30, revoked An owner wants a swimming pool built in a specified location. the location is in violation of the locate code. the contractor should a) not agree to build the pool b) make the owner sign a waiver of liability c) build the pool as d) subcontract the work to a pool contractor - Answer- a) not agree to build the pool. An individual qualifying for licensure which require a trade exam must a) Be a full-time employee. b) Be an owner. c) Have net worth off at least $15,000 d) Have net worth at least $30,000 - Answer- a) Be a full-time employee All of the following are required on a written contract EXCEPT a) begin and completion dates b) class of license c) permit numbers d) payment schedule - Answer- c) permit numbers If licensees are notified at the time of renewal that an additional fee for the contractor recovery fund is due, and the licensee does not pay the fee at that time, how much additional time is the licensee given. a) 10 days b) 30 days c) 60 days d) 180 days - Answer- b) 30 days When is a renewal a reinstatement application considered received by the board? a) When it's mailed b) When the application and fees are received by the board c) When it is post marked d) when the check for the fee is cleared by the bank - Answer- b) when the application and fees are received by the board Who may file complaints against a licensed contractor? a) only a person for whom the contractor's has performed work. b) only a building inspector or building official c) either, a person for whom the contractor has performed work, an inspector, or building official d) any person - Answer- a) only a person for whom the contractor's has performed work. Who may make a claim for payment from the contractors Recovery Trust Fund? a) an insurer b) an employee of the licensee c) a subcontractor who contracted with the licensee d) a property owner who contracted with the licensee - Answer- d) a property owner who contracted with the licensee A new building may be used for its intended purpose only after a) all liens have been satisfied b) all inspections have been completed c) all disturbed areas have been stabilized d) a certificate of occupancy as been issued - Answer- d) a certificate of occupancy as been issued ABC Contracting is building an addition to a house for Mrs. Smith. Mrs. Smith has paid draws to cover the foundation and framing. the framing materials have been delayed in arriving. rather than sit idle waiting for the materials, ABC decides to apply the funds received for the framing to begin the foundation work on an addition being contracted for another for Mrs. Jones. ABC know when Mrs. jones pays the draw for the foundation completion, ABC can use these funds to pay for the Smith framing materials which should arrive at the same time. This is a) an acceptable business planning. b) an example of misapplication of funds c) okay, as long as all funds are account for properly. d) something that must be approved by the supplier of the framing materials - Answer- b) an example of misapplication of funds Soil stabilization MUST be applied to denuded areas within how many days after final grade is reached on any portion of ths site? a) 7 days b) 10 days Modifications to a contract affect cost, materials, work scope, or estimated completion date shell a) have a reason clearly stated b) be in writing and signed by all parties c) cause a new contract to be written d) be verbally agreed to by parties - Answer- b) be in writing and signed by all parties What is the maximum fine for beginning land-disturbing activities without an approved erosion sediment control plan and permit when REQUIRED? a) $100 b) $100 per day c) $1,000 d) $1,000 per day - Answer- d) $1,000 per day A claim against the Contractor Recovery Trust Fund Shall be paid if due to a) failure to supervise a project. b) a non-licensed individual performing the work c) the licensee's improper or dishonest conduct d) failure to complete work in a timely manner - Answer- c) the licensee's improper or dishonest conduct A code official may request the initiation of legal proceedings against a contractor served with a minimum of how many notices of violation within one calendar year for beginning work without a required permit? a) 3 b) 5 c) 7 d) 1 - Answer- a) 3 An individual qualifying for licensure (to be Q.l.), in which a trade related examination is required, MUST a) work for only one employer. b) be an owner c) have a net worth of $15,000 d) be bonded - Answer- a) work for only one employer Initial licensure fees include a fee for the Contractor Transaction Recovery Fund of a) $25 b) $50 c) $100 d) $200 - Answer- a) $25 A new building may be used for its intended purpose only after a) all aliens have been satisfied b) all inspections have been completed c) all disturbed area has been stabilized d) all certificates of occupancy have been issued - Answer- d) all certificates of occupancy have been issued. Fees paid by the contractor to the Contractors Transaction Recovery Fund may be used for: a) board expenses b) payment to claimants c) department expenses d) punitive damage - Answer- b) payment to claimants A contractor transaction recovery fund should be paid if due to a) failure to supervise a project. b) a non-licensed individual. c) the licensee's improper or dishonest conduct. d) failure to complete work in only matter. - Answer- c) the licensee's improper or dishonest conduct A contract for which of following types of structures may be subject to recovery from the Transaction Recovery Fund? a) residential only b) residential or commercial c) commercial or industrial only d) any structures - Answer- a) residential only Who is designated to be in charge of a local building department? a) Chief Inspector b) Building Official c) Virginia Department of Housing and Community Development d) County Commission - Answer- b) Building Official Contractors who are assessed a fee to support the transaction recovery fund MUST pay this fee within how many days from when the assessment fee notice was initially mailed. a) 15 days b) 30 days c) 45 days d) 60 days - Answer- c) 45 days How much is the Class A initial license fee? a) $360 b) $235 c) $370 d) $385 - Answer- d) $385 When must the work be stopped following the issuance of a stop work order? a) immediately. b) within 24 hours c) within 48 hours. d) within time designated by stop work order. - Answer- a) immediately What is the primary purpose of licensing? a) protect the health and welfare of the general public b) raise standards of the profession c) discipline contractors d) examine contractors - Answer- a) protect the health and welfare of the general public What is the maximum penalty for a contractor undertaking work without the proper class license? a) $500 fine b) $500 fine plus penalties for a misdemeanor c) $500 per day for each day of violation d) $500 per day for each day of violation plus penalties for a misdemeanor - Answer- d) $500 per day for each day of violation plus penalties for a misdemeanor Contractors will be assessed a fee for the Transaction Recovery Fund in event the fund balance falls below: a) $100,000 b) $250,000 c) $400,000 d) $500,000 - Answer- c) $400,000 Additions to building must comply normally with a) the occupancy code. b) either the current code for new construction or the code that was in effect when the building was originally constructed d) either the joint venture or each contracting party of the joint venture must be licensed - Answer- d) either the joint venture or each contracting party often joint venture must be licensed A firm who is attempting to obtain a Class A license shall provide information to the Board for the ( ) years prior to application on any outstanding, past due debts and judgments. a) 5 b) 3 c) 2 d) 4 - Answer- a) 5 To obtain a Class B license the qualified individual shall have at least ( ) years experience. a) 3 b) 2 c) 4 d) 1 - Answer- a) 3 In the event the designated employee leaves the full time employ of a Class A licensed contractor, the contractor shall within ( ) days of that departure provide to the Board the name of the new designated employee a) 90 b) 60 c) 90 d) 30 - Answer- a) 90 When violations are discovered more than ( ) years after the certificate of occupancy is issued, a notice of violation shall only be issued upon advice from legal counsel. a) 4 b) 2 c) 5 d) 3 - Answer- b) 2 The Recovery fund shall have a minimum balance of ( ) at all time. a) $40,000 b) $400,000 c) $500,000 d) $300,000 - Answer- b) $400,000 The maximum claim of a claimant against Fund based upon any unpaid judgment arising out of the improper of dishonest conduct involving one transaction shall bot exceed? a) $15,000 b) $20,000 c) $40,000 d) $10,000 - Answer- b) $20,000 In the event that a regulates license has been revoked due to dishonesty, the regulate shall not be eligible to apply for a license until ( ) has been submitted to the Fund. a) the full amount paid from the Board plus interest b) the interest c) the full amount paid from the Board d) the regulate is not required to submit anything to the Fund - Answer- a) the full amount paid from the Board plus interest A license shall expire ( ) years from the last day of the month in which it was issued. a) 4 b) 2 c) 1 d) 3 - Answer- b) 2 The minimum storage capacity of a sediment basin shall be ( ) cubic yards per acre of drainage area a) 135 b) 134 c) 88 d) 124 - Answer- b) 134 Each applicant shall be assessed ( ) which is to be placed in the Contractor Transaction Recovery Fund. a) $75 b) $50 c) $25 d) $100 - Answer- c) $25 Which of the following is permitted to receive awards from the Fund? a) financial or lending institution involved in real estate b) employee of debtor c) property owner d) child of debtor - Answer- c) property owner A contract calls for liquidated damages of $500 per day. The project was completed five days late because it was delayed by rain. the completion would have been ten days earlier if it were not for the rain delay. There was a $500 bonus per day for the contractor for early completion. No extension of time was requested or granted. How much does the contractor earn or owe? a) earn $2,500 b) owe $2,500 c) nothing d) earn $5,000 - Answer- b) owe $2,500 A partnership is required to a) hire a profession manager b) obtain partnership insurance c) obtain a federal tax ID number d) file a business plan - Answer- c) obtain a federal tax ID number. Construction business differs from manufacturing in that a) product price is determined before actual cost is determined. b) there is a deduced need for skill labor c) it is easier to obtain financing d) there is less government regulation. - Answer- a) product price is determined before actual cost is determined. An owner makes a progress payment to the contractor one day later than originally called for by the contract. the contractor decides to abandon the job without completing it. The contractor probably a) is legally justified b) has committed a material breach of the contract. c) should have obtained a lien against the property d) should have requested change order. - Answer- b) has committed a material breach of the contract. Which of the following is a requirement for a Joint Venture? a) one of the two is a licensed company and will be the managing partner. b) the Joint Venture will engage in work with a net worth of less than $70,000 c) the Joint Venture will register as a foreign company. d) the Joint Venture must have a contractor's license - Answer- d) the Joint Venture must have a contractor's license. Bids should prepare for a) only projects with a request for bid. b) all projects with a scope of work similar to that typically performed by the company c) only those projects whose general conditions are similar to those on projects previously performed by the company d) only those projects on which the company can be competitive with other bidders. - Answer- b) all projects with a scope of work similar to that typically performed by the company. Key Topics to REMEMBER: 1. Price 2. Time (Duration) 3. Scope of Work (S.O.W) Which of the following is an advantage of a sole proprietorship? a) There is limited liability for business debts. b) the business can be sold at will. c) It protects business property for beneficiaries. d) It conducts business as a separate legal entity. - Answer- b) the business can be sold at will. What has been the approximate average profit margin in the construction industry in the past several years? a) 15 % b) 10 % c) 20 % d) 40 % - Answer- a) 15 % The typical result of including a higher than usual markup for profit in estimates is a) a higher breakeven point. b) fewer bids awarded. c) better inventory control. d) fewer estimating costs. - Answer- b) fewer bids awarded. Company overhead rates included in an estimate should be based on a) historical data and business projections b) bid documents c) unit pricing d) lump sum estimates - Answer- a) historical data and business projections Changes to the plans and specifications made before bids are due are called a) change orders b) alternates c) addenda d) submittals - Answer- c) addenda The general rule of law for interpreting an ambiguous provision of a contract is that it is a) interpreted against the party who wrote it. b) not binding c) interpreted against the owner. d) interpreted against the contractor - Answer- a) interpreted against the party who wrote it. Fast-track construction typically includes a) a complete set of plans prior to initial bidding. b) multiple prime contractors. c) a complete set of specifications prior to starting the work. d) a cost plus contract. - Answer- b) multiple prime contractors. An offer should typically include all of the following EXCEPT the a) Progress payment b) Completion date. c) Names of the subcontractors. d) List of services to be included - Answer- c) Names of the subcontractors. Which of the following usually contracts with a subcontractor? a) owner b) architect c) prime contractor d) inspector - Answer- c) prime contractor Which of the following is included in the company overhead, or general administrative (G & A)? a) permits b) storage facilities c) company insurance d) equipment operation expenses - Answer- c) company insurance In a typical contractual agreement, who is responsible for ensuring that all required permits are obtained? a) contractor b) owner c) architect4 d) supervisor - Answer- a) contractor On MOST large construction projects, which typically certifies to the owner that progress payments should be made? a) general contractor b) subcontractor c) inspector d) architect or engineer - Answer- d) architect or engineer A subcontractor does NOT provide worker's compensation coverage to employees. Who is liable for providing coverage to the subcontractor's employees? a) employees b) project owner c) subcontractor d) general contractor - Answer- d) general contractor A ______________ is used when an owner contracts with one company to complete the construction process from start to finish and purchase land. a) design/build b) turnkey c) fast-track d) single prime - Answer- b) turnkey A major purpose of tracking costs is because ________________ can indicate a possible problem. a) under runs b) Profit c) Cutting corners d) Overruns - Answer- d) Overruns All but which of the following is an obligation by the contractor? a) approval of all plans b) complete work according to plans c) keep the job site safe d) secure appropriate building permits - Answer- a) approval of all plans The management team for a limit partnership consists of? a) obtain a permit from the EPA. b) provide the EPA lead pamphlet to an adult occupant. c) provide respirators to the occupants d) dispose of the replaced drywall is a landfill - Answer- b) provide the EPA lead pamphlet to an adult occupant. Who is responsible for providing Jobsite employees with the address to material safety data sheets a) Project owner b) Employer c) OSHA d) Supplier - Answer- b) Empolyer A quality assurance program can result in all of the following benefits EXCEPT a) reduced costs. b) reduced theft losses c) quicker completion time d) better company success - Answer- b) reduced theft losses All of the following are possible causes of going over budget on a project EXCEPT a) mismanagement b) theft c) bad estimating d) accurate accounting - Answer- d) accurate accounting A contractor's employee discovers a possible safety hazard at a job site. The employee informs the contractor. Safety regulations do NOT address this particular safety hazard. The contractor should a) notify the owner and request a change order b) notify OSHA c) correct hazard through certified Hazardous Materials contractors d) continue working if no accidents have yet occurred. - Answer- c) correct hazards through certified Hazardous Materials contractor The time a project component can be delayed without delaying completion of the overall project is known as a) free time b) control time c) critical path time d) float time - Answer- d) float time All contractors with a minimum of HOW MANY employees must comply with OSHA record-keeping and reporting requirements? a) 1 employee b) 3 employees c) 5 employees d) 11 employees - Answer- d) 11 employees Under the Miller Act, material suppliers to a sub contractor who is filing a suit against the bond must do so within what period of time after last supplying materials for the subcontractor? a) 60 days b) 120 days c) 6 months d) 1 year - Answer- d) 1 year A contractor's employee discovers a possible safety hazard at a job site. The employee informs the contractor. Safety regulations do NOT address this particular safety hazard. The Contractor should . . . a) notify the owner and request a change order b) notify OSHA c) correct the hazard d) continue working if no accidents have yet occurred - Answer- c) correct the hazard The subcontractor does NOT provide worker's compensation coverage to employees. Who is liable for providing coverage to the subcontractor's employees? a) employees b) project owner c) subcontractor d) general contractor - Answer- d) general contractor At least how often must an employer report info on number of employees? (number of new hires in order to meet the Child Support Enforcement Act) a) Quarterly b) Every week c) Every 2 months d) Every month - Answer- b) Every week A surety bond is typically a ( ) party bond a) One b) Three c) Two d) Four - Answer- b) Three Of the following situations, which one would demonstrate that the worker is an employee? a) the worker has limited supervision b) the worker must have his or own tools c) the worker is not required to be at the site at a given time period d) the worker has expectations the relationship will continue indefinitely - Answer- d) the worker has expectations the relationship will continue indefinitely All but which of the following is an advantage to equipment ownership? a) certain tax benefits b) usually costs are less c) obsolete equipment is returned to the owner d) depreciation - Answer- c) obsolete equipment is returned to the owner depreciation what percent of workers compensation insurance premiums for an employee can be deducted from the employee's pay. a) 0 % b) 1.45 % c) 5 % d) 6.2 % - Answer- a) 0 % A financial statement that reflects a company's financial situation includes a) a working capital statement b) a statement at cash flows c) a balance sheet d) an income statement - Answer- c) a balance statement A financial statement that reflects a company's operation includes a) a working capitol statement b) a statement of cash flows c) a balance sheet d) an income statement - Answer- a) an income statement These are all elements of an income statement EXCEPT a) taxes b) cash c) overhead Revenues less costs of construction equal a) income from operations b) net income c) gross profit d) income before taxes - Answer- c) gross profit A method that offers some protection from risk of liability is a) verifying subcontractors' insurance coverage b) having employees sign a "Hold Harmless" agreement c) using joint ventures d) having the owner obtain workers' compensation insurance - Answer- a) verifying subcontractors' insurance coverage IRS Form 941 is used for reporting a) Federal unemployment taxes paid and due. b) quarterly Federal tax deposits paid and due c) alien workers d) company income - Answer- b) quarterly Federal tax deposits paid and due An advantage of keeping inventory levels as low as possible is a) decreasing transportation time. b) minimizing working capitol needs c) reducing labor cost d) increasing float time. - Answer- b) minimizing working capitol needs. Which accounting method records income only when the income is received? a) completed contract b) percentage if completion c) accrual basis d) cash basis - Answer- The general rule of law for interpreting an ambiguous provisions of contract is that it is a) interpreted against the party who wrote it. b) not binding. c) interpreted against the owner. d) interpreted against the contractor. - Answer- a) interpreted against the party who wrote it. What is the minimum annual vacations hours required by the Fair Labor Standards Act? a) 0 hours b) 8 hours c) 40 hours d) 80 hours - Answer- a) 0 hours All of the following methods can be used to remit Federal payroll taxes except a) making payroll tax payments online. b) including payment with an timely filed quarterly report form. c) including payment with a timely filed company Federal income tax return d) making electronic payments - Answer- c) including payment with a timely filed company Federal income tax return What percent of an employee's wages is withheld for Medicare tax? a) 1.45 % b) 2.90 % c) 6.20% d) 7.65 % - Answer- a) 1.45% What is the penalty for filing Form 941 ten days late where there is unpaid tax of $500 due on the Form 941? a) 1 % b) 5 % c) 10 % d) 25% - Answer- b) 5 % Which of the following ensure the project owner that the contractor will complete the project in accordance wiht the terms of the contract? a) performance bond b) bid bond c) completed operation d) payment bond - Answer- a) performance bond The percentage of completion method of accounting/ a) yields more misleading financial information than completed contract method. b) relies on accurate estimates c) does not match revenue with expenses d) should be used only for short-term projects. - Answer- b) relies on accurate estimates. A company's workforce consisting of employees who are NOT members of a union a) refuses employment to a union member. b) refuses to permit a union's solicitation of employee's during work hours. c) enter into an agreement that requires employees to join a union. d) terminates any employee who joins a union - Answer- b) refuses to permit a union's solicitation of employee's during work hours. What percent of an employee's wages is withheld for Social Security Tax? a) 2.00% b) 2.90% c) 6.25% d) 7.65% - Answer- c) 6.25% What is the Virginia corporate income tax rate before modifications, credit, or adjustment? a) 6.2% b) 1.45% c) 7.65% d) 6.0% - Answer- d) 6.0% Which of the following is a TRUE statement about a computerized job cost system? a) it is less cost effective than a manual system. b) cost data is updated regularly. c) it should not be considered by beginning contractors. d) it does not yield timely results. - Answer- b) cost data is updated regularly What of the following is used to obtain an EIN? a) I-9 b) SS-4 c) W-2 d) W-4 - Answer- b) SS-4 If one is to receive earned income credit, one should use which IRS Form? a) W-3 b) W-4 c) W-5 d) W-6 - Answer- c) W-5 All the following except ________ is an effective means of attracting good employees. a) life insurance b) vision program