Michigan Builders Business/Law/Accounting Exam Questions With Correct Answers
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Course
Michigan builders license
Institution
Michigan Builders License
Michigan Builders Business/Law/Accounting
Exam Questions With Correct Answers
Verification Form I-9 must be completed by applicants providing proof of identity and
employment eligibility within ______ of employment. - answer3 days
What type of business is the easiest to establish and allows the...
Michigan Builders Business/Law/Accounting
Exam Questions With Correct Answers
Verification Form I-9 must be completed by applicants providing proof of identity and
employment eligibility within ______ of employment. - answer✔✔3 days
What type of business is the easiest to establish and allows the owner to determine how profits
are used although they are personally liable for all debt and assets? - answer✔✔Sole
Proprietorship
A ______is a joint co-owner partnership established to specifically increase bonding and bidding
capacities and profits. - answer✔✔General Proprietorship
Provisions of the Americans with Disabilities (ADA) Law apply to employers having _____
employees. - answer✔✔15 or more
What Federal Act requires those working on federal and federally funded construction projects to
be paid a minimum prevailing wage for their trade? - answer✔✔Davis Bacon
Which of the following are fringe benefits that supplement an employee's hourly wage? -
answer✔✔Paid vacation, sick leave, 401k plan company vehicle
To avoid being held liable, the contractor must file a _______ once the lien payment is received.
- answer✔✔Lien release
What is the Michigan Act 230? - answer✔✔It creates the Commission and regulates code and
inspections in the State.
What unit is issued a Certificate of Acceptability and will not be inspected at the site? -
answer✔✔Manufactured home
What is the purpose of the subcontractor completing a Sworn Statement? - answer✔✔To get
paid by the contractor
What is the purpose of a Partial Unconditional Waiver? - answer✔✔To prove that partial
payment to subs or suppliers has been received.
The subcontractor has ______ to file a lien against the property for non-payment from the
contractor. - answer✔✔90 days
Failing to renew one's license before the deadline will result in a _____. - answer✔✔$20 late fee
How long does the homeowner/business have to file a complaint after the project is completed? -
answer✔✔18 months
What aids and protects the contractor from accusations of project abandonment without a good
legal excuse? - answer✔✔The arbitration clause
To avoid being fined, the contractor must notify the Department within _____ of relocating their
business or changing the business' name. - answer✔✔10 days
Definitively, a _______ is a person that constructs, replaces, improves, or demolishes residential
or commercial structures for a fixed or lump sum price or fee. - answer✔✔Licensed Residential
Builder
When can a subcontractor work without being licensed? - answer✔✔When they are working
under a licensed contractor that is not a mechanical contractor
An owner/landlord is not permitted to do their own building alterations _______. -
answer✔✔When the repairs are structural in nature
A complaint is _______ when it cannot be resolved at the informal investigative hearing. -
answer✔✔referred to the Administrative Law Hearing Examiner
What body assesses the penalty and issues the "Final Order" to settle the complaint? -
answer✔✔The Board
How long does the Respondent have to appeal the "Final Order" decision? - answer✔✔30 days
A Builder's incompetence refers to _________. - answer✔✔failure to conform to minimum
accepted professional standards
What required bond is a percentage of the project cost put up by the builder to ensure the
homeowner or business the project will eventually be completed? - answer✔✔Performance
Bond
What is the biggest environmental/human concern created during masonry construction? -
answer✔✔Silicon dust
What is the layer of flashing installed over base flashing called? - answer✔✔Counter Flashing
Who pays for planned or unforeseen changes made to the contract scope of work? -
answer✔✔Whomever is specified in the contract
How much retainage may be held? - answer✔✔Whatever is specified in the contract
What determines your working capital? - answer✔✔Assets - Liabilities
How long does the contractor have to complete both sections of the licensing exam? -
answer✔✔1 year from stamped date on license application
Why is it unwise to do business as a sole proprietorship? - answer✔✔The risk of losing all
personal assets if the project goes wrong
Two contractors that combine their commercial resources form a ______ . - answer✔✔joint
venture
Who regulates the building profession, including the work and licensing? - answer✔✔The
Department of Licensing and Regulatory Affairs
Why is a builder's license required to perform residential work and not for commercial building?
- answer✔✔There is more fraud in residential building
What does a builder's license qualify the licensed builder to do? - answer✔✔Build all of the
home except for mechanical features
Which type of bond guarantees the contractor will perform the scope of work quoted if they win
the bid? - answer✔✔Bid Bond
Which type of bid bond requires the contractor to lose the entire bond to the owner if the
contractor backs out? - answer✔✔Liquidated Damages
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