HBLB Business and Law Practice Test

These questions are part of the practice quiz. Start practicing

• In financial terms, what is meant by 'liquid assets'?
• If a company has more than ten employees, what must they provide to their employees?
• A signed waiver of lien serves what purpose?
• True or False: The critical path schedule shows how the tasks on the schedule are inter-related.
• What is one of the four key elements required for a contract to be binding?
• What is the purpose of contingency time in project scheduling?
• What can the Board do if material facts are disputed in a builder's complaint?
• What does allowing for float time in a project schedule help ensure?
• What term refers to the time allocated in a project schedule to account for unforeseen delays?
• What is the role of New Hire Reporting in relation to child support?
• What term describes estimates of funds set aside for specific project items?
• Under what condition may the Board remove a revocation or suspension?
• What is included in a punch list?
• It is always wise to choose the subcontractor who provides the lowest bid. Is this statement true or false?
• Change orders can be classified as:
• A sole proprietor using a different name needs to file to reserve the DBA name with the secretary of state. True or False?
• A proper notification of change of name and/or address must be made within how many days?
• What is one advantage of renting equipment for a construction project?
• Where is information from a business journal typically posted?
• What are the steps involved in the closure of a construction project?
• Which of the following is considered a non-current liability?
• If the qualified officer of a corporation ceases to serve in that capacity, what happens to the corporation's license?
• What is the period to notify changes in personal information to the licensing board?
• Which type of cost should be included to cover unexpected expenses when estimating a budget?
• What are changes made to contract documents post-signature of the owner-contractor agreement referred to as?
• Who sets the standards of conduct and qualifications for applicants?
• What is required before a person can obtain a license?
• Who is responsible for assuming legal liabilities for construction accidents?
• What is the purpose of a cash flow statement?
• How many members are there on the Home Builders Licensure Board?
• Do individuals with an inactive license need to contribute annually to the homeowners recovery fund?
• What type of builder is required to be licensed when undertaking construction work for compensation of $10,000 or more on a residential building?
• Do employers have to pay overtime pay to an employee who works on a holiday?
• If your license has been revoked in another state, what may happen regarding your licensing in Alabama?
• If a company's receipts exceed its disbursements, does it have a negative cash flow?
• A complete list of all of the materials and items of work that would be required to complete a project is known as:
• If a licensee has their license revoked or suspended, what must they do before reapplying?
• How often do project managers need to update their project schedules?
• What are indirect overhead costs?
• A project manager prepares a ____________ to better understand cash flow needs.
• A licensed residential builder may construct:
• What are the losses incurred by the contractor for not completing the project on time called?
• If an injury only requires first aid, would that incident need to be recorded?
• If a contractor uses a different thickness of OSB than specified in the contract, what can they be sued for?
• An income statement is often referred to as a:
• How long does a person have to register a complaint against a builder?
• By what date must a license be renewed to avoid late fees?
• Who provides essential information that helps project managers effectively schedule their projects?
• Any monies paid out by a surety company will need to be paid back. True or False?
• How often must licensed builders renew their licenses?
• When is retainage typically paid?
• Which of the following is NOT a key element of a valid contract?
• How much time does a builder have to renew his license after expiration without retaking the exam?
• What must occur before an employer is required to record an incident of workplace injury?
• In a small construction company, who is typically responsible for project management?
• Does general liability insurance protect contractors from claims made by third parties not employed by them?
• When interviewing a person for employment, is it legal to ask them about their mental health history?
• What documentation is crucial for supporting financial transactions in construction?
• What must the Board do in the event of a license violation?
• In the context of the Administrative Code, what does the term "license" refer to?
• What is the term for the funds withheld by the owner until project completion?
• What is the first and most important element in a contract?
• If a qualified builder in a partnership dies, what must the remaining partner do to continue the business?
• Can a license be revoked without a hearing?
• What is the type of contract called when one contractor takes on all design and construction responsibilities?
• What is the time required to purchase or manufacture a company's inventory, sell the product, and collect the revenue called?
• Profitability ratios show the relationship between income or revenues versus investments and assets.
• Verified statements of lien are primarily filed for the payment of what?
• What is one of the roles of the Home Builders Licensure Board?
• Which business organization is regulated the least by the government?
• What is meant by "licensee" in the context of the Code?
• What is the term for the sum of money set aside for items like electrical and plumbing fixtures whose actual costs are unknown?
• Within how many hours must employers report a death to the nearest OSHA office?
• What must a builder do to start the informal resolution process with the Board?
• What type of insurance provides coverage for contractors against losses due to fire on a construction site?
• If a license is suspended, what is the maximum civil fine that may be imposed per violation?
• What may happen if an individual licensee fails to appear before an informal hearing?
• What is a crucial step in resolving disputes between builders and buyers?
• What must a company do when a qualifying representative terminates employment?
• At what point do employers need to keep records of job-related injuries and illnesses?
• Indirect labor costs like taxes and insurance are sometimes referred to as ______________________________.
• The phrase "good character and willingness to serve the public" typically refers to which of the following?
• What type of contract provides the owner with the total price for the project in advance?
• Is it true that a critical path schedule can be developed solely by using a calendar?
• What is an example of a fixed liability?
• Is it true that employers must post an OSHA poster?
• If the board decides to pay out of the recovery fund, what additional percentage must the contractor reimburse?
• What must occur before a builder is penalized with a temporary restraining order?
• What penalties may a licensee face if found guilty of violations of these laws and rules?
• Which one of these is a required action for renewing a builders' license if inactive?
• What does "Board" refer to in the context of the Act?
• Which business organization provides the most financial protection for the owners?
• The Wage Garnishment Law prohibits an employer from firing an employee whose pay is garnished for payment of a single debt. Is this statement true or false?
• Liability Insurance on employees provides coverage over and above worker's compensation insurance in case of injury or death of an employee. True or False?
• What is the consequence for failing to act on a complaint regarding structural deficiencies in construction?
• Employers must post an OSHA poster in which area?
• What does the term consideration in a contract imply?
• Which of the following is NOT considered a residential builder according to the Code?
• What happens to a contractor's obligations if they abandon a contract?
• What OSHA form is the annual summary of a company's injuries and illnesses that is required to be posted between February 1st and April 30th?
• Cash receipts and customer invoices are types of what?
• What is the primary purpose of including a schedule for progress payments in a contract?
• What aspect of a project does a project manager need to control tightly to ensure its success?
• The __________ requires that federal projects valued over $100,000 must produce a performance bond to guarantee completion of the project.
• What is the status of records kept in the office of the Board?
• Employers are required to report a new employee or rehired employee to the Alabama New Hire Reporting Program.
• Which of the following is not exempt from licensure when involved in a construction project exceeding $10,000?
• Which of the following is considered a violation of the Code?
• Boilerplate provisions in a contract refer to common terms agreed upon by the parties. What is one example of such a term?
• What type of liabilities are typically long-term obligations?
• What type of training must employers provide regarding hazardous materials?
• Why is it important to keep accurate records of historical job site overhead costs?
• The general contractor has the primary legal responsibility for construction accidents. True or False?
• Can any action be taken to affect an informal settlement without the approval of the board?
• What type of insurance covers the cost of injury if a hammer is dropped from a roof and injures a member of the public?
• What is the typical industry markup percentage?
• Are oral contracts considered valid?
• A company's current assets are $100,000, and the total liabilities are $50,000. What is the net working capital of this company?
• Who can cancel builder's risk insurance?
• What is the penalty for non-compliance with EPA regulations for lead safe practices?
• The process of allocating the cost of a tangible fixed asset over the asset's useful life is called _____________ .
• Which of the following is an example of a financial statement?
• Which action is considered a violation of the articles regulating the occupation?
• Who appoints the members of the Board?
• For how long must employers retain exposure records for hazardous materials?
• In construction projects, what is often included in estimates for protective measures?
• For which of the following reasons is the project manager's role critical?
• Who is authorized to enforce the licensing act requirements in Alabama?
• Can a corporation be the sole owner of a property?
• A Performance Bond guarantees that the contractor will complete the project according to the contract plans and terms. True or False?
• A company must provide a written emergency action plan to employees only if they have how many employees?
• If a builder disputes the material facts of a complaint, what action may the Board take?
• What is a requirement for a nonresident applicant wishing to obtain a license?
• If a contractor finds a handwritten provision on a drawing, should they ignore it?
• Do Limited Liability Companies have the ability to be passed down to family members when an owner dies?
• Which Federal Form do employers have new employees complete to determine the correct federal income tax withholding?
• Is it true that any changes to the original contract require a signed "Change Order" before implementation?
• What Federal form are employers required to complete within 3 days of their hire for the U.S. Customs and Immigrations Service?
• What term is used for the costs involved in the transportation of materials?
• Unit price estimates consist of assigning costs to each separate unit of construction. Is this statement true or false?
• To settle a dispute informally, what must occur when a complaint is filed against a builder?
• What is required of a builder's partner if the builder passes away and they wish to continue the business?
• The __________ is an accounting method used to recognize revenue when it is earned.
• What must a builder applicant send with his application for licensing under a d.b.a.?
• What is required from manufacturers of hazardous materials to facilitate the training of employees on safe usage?
• Which of the following is an example of a fixed asset?
• What is the primary job of a project manager?
• Which of the following is a key responsibility of a project manager in a construction project?
• During what phase is it critical to inspect the job site?
• Can Sub Chapter "S" Corporations retain their status regardless of the number of stockholders?
• Prime contractors should verify that their subcontractors have secured their own insurance for general liability and workers compensation. True or False?
• What is the required frequency of renewal for a residential builder's license?
• What action must a builder take if they receive a formal complaint notification?
• Who may file verified statements of lien?
• A board member who has participated in an investigation on a complaint filed with the Board must NOT participate in making the final decision on that complaint. True or False?
• Which regulation governs home builders?
• What is the first step an employer should take upon hiring a new employee in relation to taxes?
• For what reason can a building license be revoked?
• What are the first steps in completing an estimate?
• What implications does a revocation of a license carry for the licensee if they wish to reapply?
• Can a temporary restraining order be issued for willful non-cooperation during an investigative process?
• What document outlines the expectations for quality during a construction project?
• What must a residential builder do if their license is revoked?
• How many days of advance notice is given before a formal hearing?
• Who is responsible for paying workers' compensation insurance?
• Are the owners of a sole proprietorship required to purchase workers compensation insurance to cover themselves?
• What is the time frame for a builder to file a verified statement of lien on residential property?
• What does a Permit Bond ensure?
• A waiver of lien could indicate which of the following?
• If a qualifying officer's license is suspended, what can happen to the business?
• What must a builder do within the timeframe after their license expires?
• The imposed order that mandates stopping work during a violation investigation is referred to as what?
• When does the expiration date of a residential builder's license occur?
• When adding profit to an estimate, the value is usually __________________________.
• What term describes when the homeowner is accepting the risk related to the project instead of the general contractor?
• Who decides what penalty will be imposed against a residential builder who violates the Code?
• What is the minimum requirement for license renewal to prevent penalties from being charged?
• Where must a builder's license be displayed according to the regulations?
• Which of the following is NOT a requirement to obtain a builder's license?
• What does 'retained earnings' refer to in a contract context?
• What does the term "board" refer to in the relevant code?
• Who appoints the members of the Home Builders Licensure Board?
• An example of a current asset is ___________ .
• If notified by the Board about a complaint, what rights does one have?
• What type of policy typically covers equipment located on-site or in transit?
• What is the possible penalty for a repeated violation of an OSHA standard?
• Exposure records for toxic substances or harmful physical agents must be kept for the duration of employment plus how long?
• Which of the following cost types is often the least straightforward to estimate?
• What would be the best source to use when estimating job site overhead?
• If an employee is willfully injured on the job, what percent of workers' compensation insurance can he collect?
• How soon must a company inform the board if its qualifying representative ceases to be associated with the company?
• After filing a verified statement of lien claim, how long does the claimant have to foreclose on the lien?
• What penalty is imposed for practicing Home Building without a valid license?
• What items are usually found in a bid package?
• Which of the following can be a penalty for violating occupational regulations?
• Should a contract outline a schedule for progress payments?
• Equipment in transit, on the premises, or at the job site is typically covered by which policy?
• Which document is typically required to formalize any changes made to an original construction contract?
• A contractor should not only consider the costs of equipment needed to build the project, whether owned or rented, but also the operating expenses. Is this statement true or false?
• What term refers to pre-execution changes made to contract documents?
• What is the significance of attorney's fees being recoverable by the prevailing party?
• Is it necessary for every member of a partnership or corporation to hold a Residential Builders' License?
• What does "incompetence" refer to in legal terms?
• Which statement is true regarding OSHA poster requirements?
• In which circumstance might an employer legally terminate an employee related to garnishment?
• What term is used to describe when the contractual terms have been violated to the point that the contract is no longer valid?
• Which of the following does NOT constitute a valid reason for license revocation?
• Can a contract still be valid if minor provisions are violated?
• Which term is typically used for a legal document that has been validated through notarization?
• What is the maximum amount of hours that a minor under the age of 16 is permitted to work?
• Which of the following best defines 'accounts payable'?
• When are employers required to post the OSHA Form 300A summary?
• Do Limited Partnerships need to include the words "Limited Liability Partnership" or "LLP" in their business name?
• In which of the following scenarios is a residential builder’s license not required?
• What is a possible consequence of failing to appear for an informal hearing?
• In a general partnership, are all partners liable for the entire debt of the company regardless of ownership percentage?
• In what situation might the board deny your application for a license?
• True or False: The Miller Act imposes requirements for performance bonds on contractors working on federal projects.
• What additional cost must builders consider alongside the base cost of materials?
• An applicant cannot be refused a license without:
• Except for which type of business entity, is the business considered a separate legal entity from the owner?
• A bond that ensures the activities on a construction project match the intended activities for the permit is called what?
• Which financial statement provides a company's net worth?
• The purpose of pre-qualified bids is to ensure what?
• Which role in a construction project often coordinates with subcontractors and suppliers?
• Temporary storage facilities, dumpsters and utilities are considered _________ overhead.
• How long are employers responsible for keeping OSHA records following the year in which they pertain?
• ___________ writes off the depreciable value of an asset at a uniform rate throughout its usable life.
• If an applicant fails the examination on the first attempt, what is the next step?
• What must both parties in a contract do to ensure that the terms are clear and agreed upon?
• What is typically included in a project's overall budget?
• What is the mandatory penalty for an OSHA citation that is identified as a serious violation?
• Which financial statement provides a snapshot of a company's assets, liabilities, and equity at a specific point in time?
• Can a prime contractor be held liable for a subcontractor whose employee is claiming workers compensation benefits if the subcontractor was uninsured?
• What document is created during a project walkthrough to identify outstanding details needing resolution?
• Can a sole proprietorship issue and sell stock to raise capital?
• What does the critical path schedule illustrate?
• A guarantee that a contractor will pay certain subcontractors, laborers, and material suppliers associated with the project is known as a __________.
• Which act governs the wage rates for construction workers on federally funded projects?
• How long does an employer have to report a hospitalization of 3 or more employees?
• In what way can a builder operate legally when permitting is involved?
• To obtain a Residential Home Builders' License, what must Mr. Write do?
• What aspect of construction should be clearly outlined in the project specifications?
• What component can be included in contracts to address unexpected delays?
• Under which condition can a licensee continue working if their supervising builder’s license is revoked?
• What does direct labor cost refer to in the building process?
• What term refers to the return on investment, or profit earned relative to the initial investment?
• Who is responsible for setting standards of conduct and handling disciplinary procedures?
• In legal terms, how is a "complaint" defined?
• Which term describes the ownership interest of shareholders in a company?
• What is a consequence for a builder who fails to account for funds received for a project?
• What Federal law provides employers with their minimum wage and overtime requirements?
• What should prime contractors ensure regarding their subcontractors' coverage?
• After how many years must an expired license holder meet all requirements to renew their license?
• Which organization is responsible for issuing and renewing licenses for residential home builders?
• What term is used for the order issued by the Circuit Court to stop a builder from continuing work?
• Liabilities are best defined as ____________ .
• Which of the following is NOT a part of the construction estimating process?
• An applicant operating as a corporation's qualifying representative must submit which of the following?
• If an inspector is injured on a builder's job site during his inspection, which insurance policy would provide coverage?
• Which accounting method records income at the time it is earned?
• What is the primary purpose of New Hire Reporting?
• What is the first step the Board will take to resolve a complaint between a buyer and builder?
• How many days does a person denied a license have to petition the Board for a review?
• Which estimating method provides a fixed price for an entire construction project?
• What is the purpose of the investigative committee?
• Which insurance is not typically needed for a sole proprietor regarding worker's compensation?
• What is the most important action both contractor and owner should take before signing a contract?
• When can a temporary restraining order be issued against a builder?
• Which act requires payment of prevailing wage rates and fringe benefits on federally financed or federally assisted construction?
• Which of the following exempt situations requires documentation for a builder to operate without a license?
• What type of insurance covers a builder against theft of materials from a job site?
• Which of the following is required for licensing a builder under a fictitious business name?
• An unlicensed builder who has a homeowner pull building permits for a construction project over $10,000 is:
• How is The Home Builders Licensure Board structured?
• If an individual residential builder's license is revoked, what must happen to the builder's employees?
• Which of the following statements about a temporary restraining order is true?
• Minors under the age of 18 cannot _______________________unless they are defined as an apprentice by law.