NASCLA Practice Test 1
Questions and Complete
Solutions Graded A+
FOB freight prepaid requires _________ to pay for shipping charges. - Answer: Seller (Chapter 14, page
11)
Which of the following is not a member of the supervisory team? Foreman, Materials expediter,
Owner's representative, Project manager - Answer: Project Manager (Chapter 9, page 7)
________ scheduling consists of dates, delivery dates, payment schedule and vacations. It is a simplified
method. - Answer: Calendar (Chapter 9, page 2)
When working in dwelling that was built prior to 1978, the employer is to provide each occupant with a
pamphlet titled __________. - Answer: Protect your family from lead in your home (Chapter 12, page
13)
Who pays into a worker's unemployment compensation? - Answer: Employer (Chapter 11, page 12)
A lump sum contract on a project has a total contract price of $260,000. Retainage has been held back at
10%. The contractor has received progress payments for 75% of the project. The contractor submits a
request for final payment that should be for? - Answer: More than $80,000 (260,000 x .35)
Which of the following is not a key characteristic of a sole proprietorship? - Answer: Business expenses
and personal income are not separated (Chapter 2, page 1)
What is the quick ratio (or acid test ratio) for a company that has current assets of $28,000, inventory of
$4,000, and a current liabilities of $6,000? - Answer: 4/1 (Chapter 14, Page 6)
, An EAP is required to be in writing for _______ employees or more. - Answer: 11 (Chapter 12, page 3)
Who pays into FUTA? - Answer: Employer (Chapter 15, page 5)
What is the purpose of just-in-time deliveries? - Answer: Profit high and vandalism low (Chapter 9, page
9)
Which of the following does not have to do with Ethics?
Showing up to the job on time, do what you say you are going to do, doing the right thing, lying to the
customer - Answer: Lying to the customer (Chapter 5, page 2)
Which of the following is not a reward for owning an entrepreneurship? Flexibility of time, making
decisions, being your own boss, managing cash flow - Answer: Managing cash flow (Chapter 1, page 1)
Which of the following is not covered under the ADA? AIDS, drug addiction, alcohol addiction, paper cut
- Answer: Paper cut (Chapter 11, page 7)
A job is estimated to cost $1 million. However, two companies have a cap of $500,000. They can legally
do this job if they _______. - Answer: Join venture (Chapter 2, page 6)
Willful violations of employment under FSLA may be prosecuted criminally, and the violator fined up to
$_______? - Answer: $10,000 (Chapter 11, page 5)
Which is not an advantage of a partnership? - Answer: Multiple decision makers (Chapter 2, page 2)
________ prohibits firing due to taking of property. - Answer: Wage Garnishment Law (Chapter 11, page
8)
The maximum number of shareholders permitted within an S corporation is? - Answer: 75 (Chapter 16,
page 2)
Questions and Complete
Solutions Graded A+
FOB freight prepaid requires _________ to pay for shipping charges. - Answer: Seller (Chapter 14, page
11)
Which of the following is not a member of the supervisory team? Foreman, Materials expediter,
Owner's representative, Project manager - Answer: Project Manager (Chapter 9, page 7)
________ scheduling consists of dates, delivery dates, payment schedule and vacations. It is a simplified
method. - Answer: Calendar (Chapter 9, page 2)
When working in dwelling that was built prior to 1978, the employer is to provide each occupant with a
pamphlet titled __________. - Answer: Protect your family from lead in your home (Chapter 12, page
13)
Who pays into a worker's unemployment compensation? - Answer: Employer (Chapter 11, page 12)
A lump sum contract on a project has a total contract price of $260,000. Retainage has been held back at
10%. The contractor has received progress payments for 75% of the project. The contractor submits a
request for final payment that should be for? - Answer: More than $80,000 (260,000 x .35)
Which of the following is not a key characteristic of a sole proprietorship? - Answer: Business expenses
and personal income are not separated (Chapter 2, page 1)
What is the quick ratio (or acid test ratio) for a company that has current assets of $28,000, inventory of
$4,000, and a current liabilities of $6,000? - Answer: 4/1 (Chapter 14, Page 6)
, An EAP is required to be in writing for _______ employees or more. - Answer: 11 (Chapter 12, page 3)
Who pays into FUTA? - Answer: Employer (Chapter 15, page 5)
What is the purpose of just-in-time deliveries? - Answer: Profit high and vandalism low (Chapter 9, page
9)
Which of the following does not have to do with Ethics?
Showing up to the job on time, do what you say you are going to do, doing the right thing, lying to the
customer - Answer: Lying to the customer (Chapter 5, page 2)
Which of the following is not a reward for owning an entrepreneurship? Flexibility of time, making
decisions, being your own boss, managing cash flow - Answer: Managing cash flow (Chapter 1, page 1)
Which of the following is not covered under the ADA? AIDS, drug addiction, alcohol addiction, paper cut
- Answer: Paper cut (Chapter 11, page 7)
A job is estimated to cost $1 million. However, two companies have a cap of $500,000. They can legally
do this job if they _______. - Answer: Join venture (Chapter 2, page 6)
Willful violations of employment under FSLA may be prosecuted criminally, and the violator fined up to
$_______? - Answer: $10,000 (Chapter 11, page 5)
Which is not an advantage of a partnership? - Answer: Multiple decision makers (Chapter 2, page 2)
________ prohibits firing due to taking of property. - Answer: Wage Garnishment Law (Chapter 11, page
8)
The maximum number of shareholders permitted within an S corporation is? - Answer: 75 (Chapter 16,
page 2)
