NASCLA Contractors Guide || Questions and 100% Verified Answers.
Course
NASCLA Contractors
Institution
NASCLA Contractors
When a business is purchased by a new owner, what happens in regards to the "EIN"? correct answers A new EIN is required
A clause that means that a subcontractor is bound by the same obligations as are required of the general contractor is called: correct answers Flow-down clause
What are the...
NASCLA Contractors Guide || Questions and 100% Verified Answers.
When a business is purchased by a new owner, what happens in regards to the "EIN"? correct answers A new EIN is required
A clause that means that a subcontractor is bound by the same obligations as are required of the general contractor is called: correct answers Flow-down clause
What are the three key functions on a business plan? correct answers Planning Tool, Loan or Investor Document, Benchmarking tool
A contractor's Business Plan does NOT include? correct answers Contract Documents
Which business structure is considered the simplest to setup? correct answers Sole Proprietorship
What is the major disadvantage of a sole proprietorship? correct answers Unlimited person liability
Which of the following is the most important when entering into 50/50 partnership correct answers Prepare a written agreement
With. partnership, are you responsible for the actions of your partner? correct answers Yes, if they act in the name of the business
Which individuals have NO managerial decision-making power and have liability restricted to the amount of the investment? correct answers Limited partners
A partnership dissolves leaving debt of $50,000. How is each partner liable? correct answers Each partner is liable for the entire amount
A _________ is a legal relationship where two or more persons are contractually associated as principals in a business? correct answers General partnership
Three people join together to form a partnership. One of the partners failed to meet their financial obligations. The other two partners can.. correct answers be forced to pay
What is one of the ADVANTAGES of a partnership? correct answers Partnerships share financial resources
A partnership that is formed outside of your state must register as what type of partnership? correct answers Foreign partnership
To register a foreign LLC, what step must be taken? correct answers File an application for Registration of Foreign LLC with the Secretary of State What is the main disadvantage of a C Corporation? correct answers Double Taxation - you are taxed once on the corporate profits and again on dividends to shareholders
What is the main advantage of an S Corporation? correct answers You avoid double taxation
What is an ADVANTAGE of a C Corporation? correct answers Limited liability for debts and actions of the corporation
Which IRS Form is required to elect S corporation status? correct answers Form 2553
What is a primary benefit of an S Corporation? correct answers S Corp. pay taxes only on income distributed to members
What is the advantage of a Limited Liability Corporation (LLC)? correct answers Like an S Corp., Federal income tax is only filed on income distributed to members
Joint ventures are typically used when? correct answers Two or more entities want to join together on a special project
With a sole proprietorship, doing business under a different name other than your own typically requires filing of what document? correct answers Fictitious name certificate with local or state government office
What do you call a special business arrangement that exists between 2 or more companies to undertake a specific project? correct answers Joint venture
Where do you reserve a name for your Company, LLC or Partnership? correct answers The Secretary of State Office
The members of the board are appointed by? correct answers The Governor
A major purpose of Licensing is to: correct answers Protect the health, safety, and welfare of the public.
Who appoints the members on the licensing board? correct answers State Governor
The Georgia License Board is composed of: correct answers Each division has 7 members that serve for 5 years
What is the term period for the members on the licensing board? correct answers 5 years
Georgia Residential applicants must show proof of general liability insurance in the amount of? correct answers $300,000 Georgia Commercial applicants must show proof of general liability insurance in the amount of? correct answers $500,000
The state requires you must have a Contractors License if the dollar amount of the construction exceeds: correct answers $2,500
The State of Georgia requires a Contractors License for construction costs that exceed? correct answers $2,500
Two types of Insurance required for Contractors are: correct answers Workers Comp and General Liability
Your license will be revoked if not renewed within: correct answers 6 months of expiration date
The continuing education requirements to renew a license in GA are? correct answers Residential Basic: at least 3 hours
Residential Light: 6 hours
What is the minimum fine the Board may impose for operating without a contractor license? correct answers $500
In GA, all jobs over what amount must include a written warranty? correct answers $2,500
Residential contractors must provide a written warranty for: correct answers 1 year for work exceeding $2,500
Licenses must be renewed every ____ years correct answers 2
How often do Contractor Licenses expire in GA? correct answers Every 2 years
What is the main purpose of insurance? correct answers To supplement your risk against accidents and theft
What type of insurance should a contractor have to cover losses from theft or fire? correct answers Property insurance
Property insurance typically covers what type of losses? correct answers Your business and personal property when damage, theft or loss occurs
While construction is in progress, what type of insurance would be used to provide coverage for machinery, equipment, materials, supplies, and fixtures that are part of the structure or will become part of the structure? correct answers All- Risk Builders' Risk Insurance
A _______ protects the transporter against freight damage penalties. correct answers transportation floater policy What type of insurance would provide insurance against natural disasters such as lightening or high winds? correct answers Named Peril Builders' Risk Insurance
Which type of policy is an inland marine insurance product to cover direct physical loss to mobile equipment while it is stored on-premsises, in transit, or at a temporary location? correct answers An equipment floater policy
Which type of insurance provides coverage against claims exceeding the coverage provided by the standard general liability? correct answers Umbrella liability insurance
A builder only carries Commercial General General Liability (CGL) Insurance. What would be covered by the policy? correct answers Injury to people not employed by the company
What type of insurance policy protects covers bodily injury that results in any physical loss or damage except for specifically listed exclusions? correct answers Commercial General Liability
What policy bundles property and liability coverage together? correct answers Business Owner Policy (BOP)
What type of insurance protects the contractor for design oversights? correct answers Professional liability
Directors and Officers Liability insurance (aka D&O coverage) provides protection to a company's directors and officers against claims for... correct answers wrongful acts arising out of
their duties to the corporation
If your company depends on a specific person for its continues success, what type of insurance might you obtain on this person? correct answers Key Man Insurance
Who pays the Workers' Comp premiums? correct answers The employer
What does workers comp insurance provide? correct answers It provides coverage for employees
injured on the job
The _________ protects employees' incomes if an employee becomes disabled or incurs a work-
related injury or illness correct answers Workers Comp Insurance (WCI)
Employees are required to pay for what % of Workers Comp insurance correct answers 0%
Who pays for unemployment insurance? correct answers The employer pays both the state and federal unemployment taxes
An employer must pay State and Federal Unemployment taxes if they had at least one employee for how many weeks in a year? correct answers 20
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller FullyFocus. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R275,52. You're not tied to anything after your purchase.
