NASCLA Contractors Guide to Business and Project Management Practice Examination

This free practice examination helps prepare contractors for the NASCLA Business and Project Management component. Our extensive database of 90+ questions ensures a unique learning experience with each attempt.

Exam Details

Time Limit
40 minutes

Questions
20 randomly selected

Question Bank
Over 90 unique questions

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1 / 20

This simple method of scheduling can be done on a regular desk calendar. This method is referred to as _______.

A) line of balance

B) critical path

C) calendar scheduling

D) bar chart

2 / 20

An offer checklist should include all of the following EXCEPT:

A) List of contract documents, including general conditions, drawings, and specifications

B) The original invitation to bid

C) Payment terms, including progress payment schedule and final payment

D) Description of the work to be performed

3 / 20

How much money does an employee pay into Workers' Compensation Insurance?

A) 10 percent of net pay

B) $0

C) 10 percent of gross pay

D) 1 percent of gross pay

4 / 20

Which of the following helps with future estimates by creating more accurate labor costs?

A) Labor recording system

B) Empirical method system

C) Average labor system

D) Job cost recording system

5 / 20

The penalty for falsifying records, reports, or applications is six months in jail, up to _______, or both.

A) $10,000.00

B) $5,000.00

C) $7,000.00

D) $17,000.00

6 / 20

An estimate that is prepared by the architect, using cost models from previous projects, is a/an _______.

A) quantity take-off method

B) conceptual estimate

C) unit price method

D) square-foot method

7 / 20

When filing income taxes, a(n) S Corporation is to use Form _______.

A) 941

B) 1120S

C) 940

D) 8109

8 / 20

When filing income taxes, a(n) S Corporation is to use Form _______.

A) 941

B) 8109

C) 1120S

D) 940

9 / 20

Net income is listed on which financial statement?

A) General Ledger

B) Chart of Accounts

C) Income statement

D) Balance Sheet

10 / 20

Commercial General Liability (CGL) insurance is not comprehensive. Therefore, additional insurance may be purchased to supplement the CGL policy. The following are examples of supplemental liabilities insurance policies the contractor can purchase EXCEPT:

A) Umbrella Liability Insurance

B) Surety Bond

C) Director's and Officer's Liability Insurance (D and O)

D) Automobile Insurance

11 / 20

A good project manager controls costs and monitors the progress of a project using the _______.

A) Daily Reports

B) Budget

C) Progress Report

D) Change Orders

12 / 20

Of the following equations, which is used to calculate the quick (Acid Test) ratio?

A) A) (Current Assets – Inventory) ÷ Current Liabilities

B) B) (Current Assets + Inventory) ÷ Current Liabilities

C) C) (Total Assets – Total Liabilities) ÷ Current Liabilities

D) D) (Cash + Accounts Receivable + Inventory) ÷ Total Liabilities

13 / 20

When a change is made to a contract without a written change order, disputes may arise and a claims resolution process begins. During the claims resolution process, the _______.

A) parties attempt to resolve the dispute through negotiation, mediation, or other methods.

B) project must always be immediately halted.

C) contractor receives additional payment automatically.

D) owner can terminate the contract without any consequence.

14 / 20

If a contract requires insurance on a project, this is considered to be _______.

A) a part of the contract

B) a modification

C) an allowance

D) a bond

15 / 20

A contract in which a contractor agrees to complete a project where he is paid a markup fee and reimbursed for the actual cost of labor and materials is a/an _______.

A) Lump-Sum Contract

B) Square-Foot Contract

C) Cost-Plus Contract

D) Unit-Price Contract

16 / 20

The initial investment in a business plus accumulated net profits not paid out to the owners is _______.

A) working capital

B) net profit

C) owner's equity

D) net income

17 / 20

Which of the following is when the general contractor approaches subcontractors, other than those who have submitted bids, to provide a lower bid?

A) Bid rigging

B) Competitive research

C) Bid shopping

D) Bid peddling

18 / 20

Which type of contract is basically a BLANK check to the contractor for whatever the contractor needs or wants?

A) Unit-Price Contract

B) Cost-Plus Contract

C) Square-Foot Contract

D) Lump-Sum Contract

19 / 20

Accelerated depreciation _______.

A) is when the liability is depreciated at a higher rate during the early part of its useful life, thereby, allowing no tax deductions

B) is when the asset is depreciated at a higher rate during the early part of its useful life, thereby, allowing larger tax deductions

C) is when the asset is depreciated at a higher rate during the early part of its useful life, thereby, allowing no tax deductions

D) is when the liability is depreciated at a higher rate during the early part of its useful life, thereby, allowing larger tax deductions

20 / 20

For recordkeeping purposes, OSHA Form 300A must be posted by _______.

A) 1-Mar

B) 1-Feb

C) 30-Jun

D) 1-Apr

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NASCLA Contractors Guide to Business and Project Management Practice Examination

Exam Details

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