Construction Industry Technician Practice Questions
Construction-related skills and knowledge required in a administrative positions in the construction industry.
- 1.
Check which applies to a limited partner.
- A.
Has all rights associated with controlling business
- B.
Has unlimited personal liability for all partnership debts
- C.
Acts as agent of partnership
- D.
Has no right to participate in management and control of business
- E.
Liability limited to amount of capital partner has contributed to business
- F.
Is not an agent of the partnership
Correct Answer(s)
D. Has no right to participate in management and control of business
E. Liability limited to amount of capital partner has contributed to business
F. Is not an agent of the partnershipExplanation
A limited partner is someone who has invested capital into a partnership but does not have the right to participate in the management and control of the business. This means that they cannot make decisions or have a say in how the partnership is run. Additionally, their liability is limited to the amount of capital they have contributed to the business. This means that they are not personally responsible for any debts or obligations of the partnership beyond their initial investment. Finally, a limited partner is not considered an agent of the partnership, meaning they do not have the authority to act on behalf of the partnership.Rate this question:
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- 2.
Check which applies to a general partner.
- A.
Has all rights associated with controlling business
- B.
Has unlimited personal liability for all partnership debts
- C.
Acts as agent of partnership
- D.
Has no right to participate in management and control of business
- E.
Liability limited to amount of capital partner has contributed to business
- F.
Is not an agent of the partnership
Correct Answer(s)
A. Has all rights associated with controlling business
B. Has unlimited personal liability for all partnership debts
C. Acts as agent of partnershipExplanation
A general partner in a partnership has all rights associated with controlling the business, meaning they have the authority to make decisions and manage the operations of the partnership. They also have unlimited personal liability for all partnership debts, which means they are personally responsible for any debts or obligations of the partnership. Additionally, a general partner acts as an agent of the partnership, meaning they can enter into contracts and make legal decisions on behalf of the partnership.Rate this question:
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- 3.
Architects are usually contracted to design Residential, Commercial and Industrial construction.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
Architects are typically hired to design various types of construction projects, including residential, commercial, and industrial buildings. This means that they are responsible for creating plans and blueprints for these different types of structures, considering factors such as functionality, aesthetics, and safety. Therefore, it is true that architects are contracted to design residential, commercial, and industrial constructions.Rate this question:
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- 4.
Identify the 5 different types of construction
- A.
Civil
- B.
Commercial
- C.
Railroads
- D.
Industrial
- E.
Parks
- F.
Institutional
- G.
Resorts
- H.
Residential
Correct Answer(s)
A. Civil
B. Commercial
D. Industrial
F. Institutional
H. ResidentialExplanation
The given answer correctly identifies the five different types of construction: civil, commercial, industrial, institutional, and residential. Civil construction refers to the construction of infrastructure such as roads, bridges, and dams. Commercial construction involves the construction of buildings for businesses and commerce. Industrial construction focuses on building structures for manufacturing and industrial purposes. Institutional construction involves the construction of buildings for public services like schools, hospitals, and government facilities. Residential construction involves the construction of houses and residential buildings. The answer covers a wide range of construction types, encompassing various sectors and purposes.Rate this question:
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- 5.
Commercial construction companies may be categorized as:
- A.
Small, Medium or Large
- B.
Retail or Office
Correct Answer
A. Small, Medium or LargeExplanation
Commercial construction companies can be categorized based on their size as small, medium, or large. This classification is commonly used in the industry to differentiate companies based on their annual revenue, number of employees, and project capacity. Small companies typically have lower revenue and fewer employees, while large companies have higher revenue and a larger workforce. Medium-sized companies fall in between these two categories. This categorization helps clients and industry professionals to understand the capabilities and scale of a construction company and make informed decisions when selecting a contractor for their projects.Rate this question:
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- 6.
The parties involved in a commercial construction process are:
- A.
Registered Professional Engineer
- B.
Contractor
- C.
Owner, Architect, Contractor, Subcontractor and Vendor
- D.
Engineer is usually the primary designer, while architect plays and active role
- E.
Residential contractor and the managing firm
Correct Answer
C. Owner, Architect, Contractor, Subcontractor and VendorExplanation
The correct answer is Owner, Architect, Contractor, Subcontractor, and Vendor. In a commercial construction process, these parties are typically involved. The owner is the individual or organization that initiates and funds the construction project. The architect is responsible for designing the project, while the contractor oversees the construction process. Subcontractors are hired by the contractor to perform specific tasks, and vendors supply materials and equipment for the project. Together, these parties collaborate to ensure the successful completion of the commercial construction project.Rate this question:
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- 7.
The parties involved in a Industrial construction process are:
- A.
Registered Professional Engineer
- B.
Contractor
- C.
Owner, Architect, Contractor, Subcontractor and Vendor
- D.
Engineer is usually the primary designer, while architect plays and active role
- E.
Residential contractor and the managing firm
Correct Answer
A. Registered Professional EngineerExplanation
In an industrial construction process, the parties involved are typically the Registered Professional Engineer, Contractor, Owner, Architect, Subcontractor, and Vendor. The Registered Professional Engineer is usually the primary designer, responsible for the technical aspects of the project. The Architect also plays an active role in the design and planning process. The Contractor is responsible for overseeing the construction work, while the Owner is the individual or organization for whom the project is being built. Subcontractors and Vendors are typically hired to provide specialized services or supplies for the project.Rate this question:
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- 8.
The parties involved in a Residential construction process are:
- A.
Registered Professional Engineer
- B.
Contractor
- C.
Owner, Architect, Contractor, Subcontractor and Vendor
- D.
Engineer is usually the primary designer, while architect plays and active role
- E.
Residential contractor and the managing firm
Correct Answer
E. Residential contractor and the managing firmExplanation
The parties involved in a residential construction process include the residential contractor and the managing firm. These two entities are responsible for overseeing and managing the construction project. The residential contractor is typically in charge of the actual construction work, while the managing firm handles the overall project management and coordination. They work together to ensure that the construction process runs smoothly and efficiently.Rate this question:
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- 9.
Architects are used to design Industrial projects:
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
Architects usually design Commercial, Institutional and Residential projects.Rate this question:
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- 10.
Who is usually the owner in an Industrial project?
- A.
Construction company can one person or large corporation
- B.
Private individual, a corporation or government agency
- C.
Private or government entity
- D.
Private individual or company
- E.
City, County, States and Federal agencies
Correct Answer
D. Private individual or companyExplanation
In an industrial project, the owner is typically a private individual or company. This means that the project is usually funded and managed by a private entity rather than a government agency or public organization. The owner is responsible for overseeing the project and ensuring its success, including making decisions about design, construction, and operation. They may hire a construction company to carry out the physical work, but ultimately, the owner retains ownership and control over the project.Rate this question:
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- 11.
Who is usually the owner in an Institutional project?
- A.
Construction company can one person or large corporation
- B.
Private individual, a corporation or government agency
- C.
Private or government entity
- D.
Private individual or company
- E.
City, County, States and Federal agencies
Correct Answer
C. Private or government entityExplanation
In an institutional project, the owner is typically a private or government entity. This means that the project could be owned by a private organization or a government agency at the local, state, or federal level. The owner could be a private individual or a company, but it could also be a city, county, or state government agency. The key is that the owner is not limited to just one type of entity, but can be either private or government.Rate this question:
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- 12.
Who is usually the owner in a Residential project?
- A.
Construction company can one person or large corporation
- B.
Private individual, a corporation or government agency
- C.
Private or government entity
- D.
Private individual or company
- E.
City, County, States and Federal agencies
Correct Answer
A. Construction company can one person or large corporationExplanation
The correct answer is "Construction company can be one person or large corporation." In a residential project, the owner is typically the construction company responsible for building the project. This can be a single individual who owns the company or a large corporation that specializes in construction. The owner is responsible for overseeing the project, managing the construction process, and ensuring that the project is completed according to the specifications and requirements.Rate this question:
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- 13.
Who is usually the owner in a Commercial project?
- A.
Construction company can one person or large corporation
- B.
Private individual, a corporation or government agency
- C.
Private or government entity
- D.
Private individual or company
- E.
City, County, States and Federal agencies
Correct Answer
B. Private individual, a corporation or government agencyExplanation
In a commercial project, the owner is usually a private individual, a corporation, or a government agency. This means that the ownership can be held by a single person, a large corporation, or a government entity. The construction company may be involved in the project, but they are not typically the owner. Instead, they are hired by the owner to carry out the construction work. Additionally, city, county, state, and federal agencies can also be owners in commercial projects.Rate this question:
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- 14.
Who is usually the owner in a Civil project?
- A.
Construction company can one person or large corporation
- B.
Private individual, a corporation or government agency
- C.
Private or government entity
- D.
Private individual or company
- E.
City, County, States and Federal agencies
Correct Answer
E. City, County, States and Federal agenciesExplanation
In a Civil project, the owner is usually a government entity such as a city, county, state, or federal agency. These entities have the authority and resources to initiate and fund civil projects for the benefit of the public. While a construction company or private individual can also be the owner in some cases, it is more common for government agencies to take on this role.Rate this question:
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- 15.
Which applies to a Sole Proprietorship?
- A.
Owner take full responsibility for the company's assets, debts, obligations and profits
- B.
An association of two or more persons
- C.
Pays no corporate taxes
- D.
"General" and "Limited" describes this type of ownership
- E.
Has Stockholders as owners
- F.
A Joint Venture
- G.
Combine the advantages of partnerships and corporations
Correct Answer(s)
A. Owner take full responsibility for the company's assets, debts, obligations and profits
C. Pays no corporate taxesExplanation
A sole proprietorship is a type of business where the owner is solely responsible for the company's assets, debts, obligations, and profits. This means that the owner assumes all the risks and liabilities associated with the business. Additionally, sole proprietorships are not subject to corporate taxes. This type of ownership is described as "general" because there is no distinction between the owner and the business entity.Rate this question:
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- 16.
Which applies to a Limited Liability Company?
- A.
Owner take full responsibility for the company's assets, debts, obligations and profits
- B.
An association of two or more persons
- C.
Pays no corporate taxes
- D.
"General" and "Limited" describes this type of ownership
- E.
Has Stockholders as owners
- F.
A Joint Venture
- G.
Combine the advantages of partnerships and corporations
Correct Answer
G. Combine the advantages of partnerships and corporationsExplanation
A Limited Liability Company (LLC) combines the advantages of partnerships and corporations. This means that an LLC provides limited liability protection to its owners, similar to a corporation, while also allowing for the flexibility and tax benefits of a partnership. In an LLC, the owners, known as members, are not personally responsible for the company's debts and liabilities. Additionally, an LLC is not subject to corporate taxes. Therefore, the correct answer is that an LLC combines the advantages of partnerships and corporations.Rate this question:
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- 17.
Which applies to a Corporation?
- A.
Owner take full responsibility for the company's assets, debts, obligations and profits
- B.
An association of two or more persons
- C.
Pays no corporate taxes
- D.
"General" and "Limited" describes this type of ownership
- E.
Has Stockholders as owners
- F.
A Joint Venture
- G.
Combine the advantages of partnerships and corporations
Correct Answer(s)
B. An association of two or more persons
E. Has Stockholders as ownersExplanation
The correct answer is "An association of two or more persons" and "Has Stockholders as owners". These options accurately describe a corporation. A corporation is a legal entity formed by a group of individuals (two or more persons) who come together to conduct business. It has stockholders as owners, who hold shares of stock in the company. This ownership structure allows for the separation of ownership and management, providing limited liability protection for the owners.Rate this question:
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- 18.
Which applies to a Partnership?
- A.
Owner take full responsibility for the company's assets, debts, obligations and profits
- B.
An association of two or more persons
- C.
Pays no corporate taxes
- D.
"General" and "Limited" describes this type of ownership
- E.
Has Stockholders as owners
- F.
A Joint Venture
- G.
Combine the advantages of partnerships and corporations
Correct Answer(s)
B. An association of two or more persons
C. Pays no corporate taxes
D. "General" and "Limited" describes this type of ownership
F. A Joint VentureExplanation
A partnership is an association of two or more persons who come together to carry on a business and share its profits and losses. In a partnership, the owners take full responsibility for the company's assets, debts, obligations, and profits. The partnership pays no corporate taxes as the profits and losses are passed through to the individual partners who report them on their personal tax returns. The ownership in a partnership can be either "general" or "limited," where general partners have unlimited liability and limited partners have limited liability. A joint venture is a specific type of partnership where two or more parties combine their resources and expertise to achieve a specific goal or project. Joint ventures combine the advantages of partnerships and corporations by allowing for shared risk and resources while maintaining separate legal entities.Rate this question:
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- 19.
A construction contract and a construction agreement are the same
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
A construction contract and a construction agreement are not the same. While both involve an agreement between parties for construction work, a contract is a legally binding document that outlines the specific terms and conditions of the project, including payment, timeline, and scope of work. On the other hand, a construction agreement is a more general term that can refer to any agreement related to construction, including contracts, subcontracts, or purchase orders. Therefore, it is incorrect to say that they are the same.Rate this question:
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- 20.
Business ownership is influenced by what factors?
- A.
Taxation
- B.
Profits
- C.
Degree of owner liability
- D.
Scope of operation and financial structure desired
- E.
Legal structure
Correct Answer(s)
A. Taxation
C. Degree of owner liability
D. Scope of operation and financial structure desiredExplanation
The factors that influence business ownership include taxation, degree of owner liability, and scope of operation and financial structure desired. Taxation refers to the amount of taxes that a business owner is required to pay, which can impact their decision to start or maintain a business. The degree of owner liability refers to the extent to which the owner is personally responsible for the debts and obligations of the business. The scope of operation and financial structure desired refers to the size and scale of the business and the desired organizational and financial structure. These factors play a crucial role in determining the ownership of a business.Rate this question:
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- 21.
___________________ an individual who owns and manages the company, may provide the initial financing, and acquires the necessary equipment and property
Correct Answer(s)
Sole ProprietorshipExplanation
A sole proprietorship is a type of business structure where an individual owns and manages the company. In this case, the individual may provide the initial financing for the business and acquire the necessary equipment and property. As the sole owner, they have complete control over the business and are personally responsible for its debts and liabilities. This type of business structure is common for small businesses or startups where the owner wants to have full control and decision-making power.Rate this question:
- 22.
______________________ the association of two or more persons who, by mutual agreement, are co-owners of a business.
Correct Answer(s)
PartnershipExplanation
Partnership refers to the association of two or more persons who agree to become co-owners of a business. In a partnership, the individuals share the profits, losses, and responsibilities of the business. This type of business structure allows for shared decision-making and pooling of resources, skills, and expertise. Partnerships can be formed by a formal agreement or simply through a mutual understanding between the parties involved.Rate this question:
- 23.
_______________________ a legal entity comprising one individual or an alliance of individuals under a corporate name.
Correct Answer(s)
CorporationExplanation
A corporation is a legal entity that can be formed by a single individual or a group of individuals who come together under a common corporate name. This allows them to operate as a separate legal entity from its owners, providing limited liability and various other benefits. By forming a corporation, individuals can protect their personal assets and finances, while also enjoying the advantages of a corporate structure such as access to capital, perpetual existence, and the ability to enter into contracts and conduct business activities.Rate this question:
- 24.
_____________________ consist of one or more persons who co-own a business by contributing capital, equipment, and/or property.
Correct Answer(s)
General PartnershipExplanation
A general partnership is a type of business structure where two or more individuals come together to co-own and operate a business. Each partner contributes capital, equipment, or property to the partnership. In this structure, the partners share both the profits and the liabilities of the business. This type of partnership does not have a separate legal entity from its owners, meaning that the partners are personally liable for the debts and obligations of the business.Rate this question:
- 25.
_____________________ co-owner's liabilities and profits are limited and are equal to the amount of capital and property invested in the company.
Correct Answer(s)
Limited PartnershipExplanation
A limited partnership is a type of business structure where there are two types of partners: general partners and limited partners. In a limited partnership, the general partner has unlimited liability for the debts and obligations of the business, while the limited partner's liability is limited to the amount of capital and property they have invested in the company. This means that the limited partner's personal assets are protected and they are not personally responsible for the company's debts beyond their investment. Additionally, both the general and limited partners share in the profits of the company according to their agreed-upon partnership agreement.Rate this question:
- 26.
_____________________ A relationship between one or more companies who unite temporarily for a specific undertaking.
Correct Answer(s)
Joint VentureExplanation
A joint venture refers to a temporary partnership formed between one or more companies for a specific project or undertaking. In this arrangement, the companies pool their resources, expertise, and capital to achieve a common goal. This allows them to share risks, costs, and profits associated with the venture. Joint ventures are often formed when companies want to access new markets, gain a competitive advantage, or leverage each other's strengths and capabilities.Rate this question:
- 27.
Select advantages of a Sole Proprietorship.
- A.
Simplest form of business ownership
- B.
Combining of financial resources
- C.
Co-owner's liabilities and profits are limited and are equal to the amount of capital and property invested in the company.
- D.
Combining resources
- E.
Stock can be sold to obtain capital
- F.
No business taxes to pay
- G.
Retains all company profits
- H.
Cannot be held personally responsible for company s debt
- I.
Combines resources, assets, and facilities as well as spreading project risk
- J.
Owners are regarded as separate and distinct by law
Correct Answer(s)
A. Simplest form of business ownership
F. No business taxes to pay
G. Retains all company profitsExplanation
A sole proprietorship is the simplest form of business ownership because it does not require any formal legal processes or paperwork to establish. Additionally, sole proprietors are not subject to business taxes as the profits and losses are reported on the owner's personal tax return. This also means that the owner retains all of the company's profits.Rate this question:
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- 28.
Select advantages of a Corporation.
- A.
Simplest form of business ownership
- B.
Combining of financial resources
- C.
Co-owner's liabilities and profits are limited and are equal to the amount of capital and property invested in the company.
- D.
Combining resources
- E.
Stock can be sold to obtain capital
- F.
No business taxes to pay
- G.
Retains all company profits
- H.
Cannot be held personally responsible for company s debt
- I.
Combines resources, assets, and facilities as well as spreading project risk
- J.
Owners are regarded as separate and distinct by law
Correct Answer(s)
A. Simplest form of business ownership
J. Owners are regarded as separate and distinct by lawExplanation
A corporation offers the simplest form of business ownership because it allows for the separation of ownership and management, meaning that the owners (shareholders) do not have to be directly involved in the day-to-day operations of the business. Additionally, owners are regarded as separate and distinct by law, which means that their personal assets are protected from the company's liabilities. This provides limited liability to the co-owners, as their liabilities and profits are limited and equal to the amount of capital and property invested in the company.Rate this question:
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- 29.
Select advantages of a Joint Venture.
- A.
Simplest form of business ownership
- B.
Combining of financial resources
- C.
Co-owner's liabilities and profits are limited and are equal to the amount of capital and property invested in the company.
- D.
Combining resources
- E.
Stock can be sold to obtain capital
- F.
No business taxes to pay
- G.
Retains all company profits
- H.
Cannot be held personally responsible for company s debt
- I.
Combines resources, assets, and facilities as well as spreading project risk
- J.
Owners are regarded as separate and distinct by law
Correct Answer(s)
A. Simplest form of business ownership
I. Combines resources, assets, and facilities as well as spreading project riskExplanation
A Joint Venture offers advantages such as being the simplest form of business ownership, combining resources, assets, and facilities, as well as spreading project risk. This means that by forming a Joint Venture, businesses can pool their resources and expertise, reducing individual risk and increasing the chances of project success. Additionally, the Joint Venture structure allows for limited liabilities and equal sharing of profits based on the amount of capital and property invested. Overall, a Joint Venture provides a flexible and efficient way for businesses to collaborate and achieve mutual benefits.Rate this question:
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- 30.
Select advantages of a Limited Partnership.
- A.
Simplest form of business ownership
- B.
Combining of financial resources
- C.
Co-owner's liabilities and profits are limited and are equal to the amount of capital and property invested in the company.
- D.
Combining resources
- E.
Stock can be sold to obtain capital
- F.
No business taxes to pay
- G.
Retains all company profits
- H.
Cannot be held personally responsible for company s debt
- I.
Combines resources, assets, and facilities as well as spreading project risk
- J.
Owners are regarded as separate and distinct by law
Correct Answer
C. Co-owner's liabilities and profits are limited and are equal to the amount of capital and property invested in the company.Explanation
A Limited Partnership offers the advantage of limiting the liabilities and profits of co-owners to the amount of capital and property they have invested in the company. This means that each co-owner's personal assets are protected from the company's debts. Additionally, this structure allows for the combining of financial resources, which can be beneficial for the growth and success of the business.Rate this question:
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- 31.
Select advantages of a General Partnership.
- A.
Simplest form of business ownership
- B.
Combining of financial resources
- C.
Co-owner's liabilities and profits are limited and are equal to the amount of capital and property invested in the company.
- D.
Combining resources
- E.
Stock can be sold to obtain capital
- F.
No business taxes to pay
- G.
Retains all company profits
- H.
Cannot be held personally responsible for company s debt
- I.
Combines resources, assets, and facilities as well as spreading project risk
- J.
Owners are regarded as separate and distinct by law
Correct Answer
B. Combining of financial resourcesExplanation
A general partnership allows for the combining of financial resources between two or more individuals. This means that partners can pool their money together to invest in the business and provide capital for its operations. By combining their financial resources, partners can have access to a larger amount of funding, which can help the business grow and expand more quickly. This advantage allows for the sharing of financial responsibilities and can also lead to increased purchasing power and economies of scale.Rate this question:
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- 32.
In a limited partnership, each partner is responsible for the others' actions.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
Like a corporation, however, all Limited Liability Company owners are protected from person liability for business debs and claims - a feature know as limited liability. This means that if the business owes money, or faces a lawsuit for some other reason, only the assets of the business itself are at risk.Rate this question:
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- 33.
A partnership is considered a legal entity
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
A partnership is not formed as a legal entity, and therefore pays no taxes. Instead, the partners are subject to personal taxation of their allocated shares of partnership profits.Rate this question:
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- 34.
______________________ is a temporary business between two or more companies for a specific undertaking.
Correct Answer
Joint VentureExplanation
A Joint Venture may be comprised of two or more companies. Companies may include Sole Proprietorships, Partnerships, or Corporations.Rate this question:
- 35.
A legal entity binding an alliance of individuals into one group under a corporate name.
- A.
Limited Liability Company
- B.
Corporation
- C.
Joint Venture
- D.
General Partnership
Correct Answer
B. CorporationExplanation
A corporation is a legal entity that brings together a group of individuals under a single corporate name. This means that the individuals involved in the corporation are bound together by a legal agreement and operate as one cohesive unit. A corporation provides limited liability to its owners, meaning that their personal assets are protected from the company's debts and liabilities. This allows for greater financial security and flexibility for the individuals involved.Rate this question:
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- 36.
A Corporation is owned by its ____________________.
- A.
Employees
- B.
General Partners
- C.
Stockholders
- D.
Sole Proprietor
Correct Answer
C. StockholdersExplanation
A corporation is owned by its stockholders. Stockholders are individuals or entities who hold shares of the company's stock, representing their ownership interest in the corporation. They have the right to vote on certain matters, such as electing the board of directors, and they may also receive dividends based on the company's profitability. Stockholders have limited liability, meaning their personal assets are protected in case of corporate debts or legal issues. Therefore, they play a crucial role in the ownership and decision-making of a corporation.Rate this question:
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- 37.
A Corporation can be sued.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
A corporation has the same rights and liabilities as an individual, but is regarded by law as "separate and distinct from its owners". A corporation is entitled to do business, incur debt, own real and personal property, sue and "be sued".Rate this question:
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- 38.
The business of a corporation is controlled by its ___________________.
- A.
Managers
- B.
Employees
- C.
General Partners
- D.
Stockholders
- E.
Board of Directors
Correct Answer
E. Board of DirectorsExplanation
A Board of Directors is elected by the stockholders (owners). The directors are responsible for conducting business in accordance with the by-laws of the corporation and for establishing company policies. The corporate officers handle the day-to-day administrative and management operations of the corporation. These include the president, vice-president, secretary, and treasurer. Generally the Board of Directors appoint the corporate officers.Rate this question:
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- 39.
A corporation which has made a profit and paid all taxes may use the remaining profit in the following ways:
- A.
Reinvest the profit back into the corporation
- B.
Pay off loans
- C.
Purchase additional stock
- D.
Distribute dividends to stockholders
Correct Answer(s)
A. Reinvest the profit back into the corporation
D. Distribute dividends to stockholdersExplanation
A corporation that has made a profit and paid all taxes has the option to either reinvest the profit back into the corporation or distribute dividends to stockholders. Reinvesting the profit allows the corporation to use the funds for further growth and expansion, such as investing in new projects or acquiring assets. On the other hand, distributing dividends to stockholders means that the profits are shared among the shareholders as a return on their investment in the company. This can be in the form of cash dividends or additional shares of stock. Both options provide benefits to the corporation and its shareholders.Rate this question:
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- 40.
Subchapter "S" corporation differs from a standard corporation in that the business elects to "transfer the corporation's tax liability to the separate stockholders.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The Subchapter "S" corporation is chartered so hat it is taxed as if it were a partnership. This corporate status transfers corporate tax liability to the individual stockholders. The may be beneficial to a company in its early years when losses may occur.
(A Partnership is not formed as a legal entity, and therefore pays no taxes. Instead the partners are subject to personal taxation of their allocated shares.)Rate this question:
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- 41.
Select all the issues that may affect the continuity of business ownership.
- A.
Ownership change
- B.
Acquisition
- C.
Key Employee Retention
- D.
Loss of Resources
- E.
Loss of Financial Resources
Correct Answer(s)
A. Ownership change
B. Acquisition
C. Key Employee RetentionExplanation
Ownership change, acquisition, and key employee retention are all issues that may affect the continuity of business ownership.
Ownership change refers to a shift in the ownership structure of a business, which can disrupt the continuity of operations and decision-making processes.
Acquisition involves the purchase or takeover of a business by another entity, which can lead to changes in management, strategy, and overall business direction.
Key employee retention is crucial for the continuity of business ownership, as the departure of key employees with specialized knowledge and skills can impact the overall functioning and success of the business.
These issues can all disrupt the stability and continuity of business ownership, making them important factors to consider and address in order to ensure the long-term success of a business.Rate this question:
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- 42.
When contracts are written and signed, they become legally enforceable documents.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
When contracts are written and signed, they become legally enforceable documents. This means that both parties involved in the contract are legally obligated to fulfill their agreed-upon obligations. If either party fails to fulfill their responsibilities outlined in the contract, the other party can take legal action to seek remedies or enforce the terms of the contract. Therefore, the statement "When contracts are written and signed, they become legally enforceable documents" is true.Rate this question:
-
- 43.
Select the key individuals typically involved in a "Design/Bid/Build" (Traditional) Contractual Arrangement.
- A.
Owner
- B.
Subcontractor
- C.
General Contractor
- D.
Design Professional
- E.
Supplier
- F.
Vendor
- G.
Design/Build Professional
- H.
Construction Manager
Correct Answer(s)
A. Owner
C. General Contractor
D. Design ProfessionalExplanation
the Design / Bid / Build Agreement is considered to be Traditional. Owner selects and signs agreements with a design professional to prepare contract documents (working drawing, specs, agreement forms, bidding info, etc.) Through bidding process General Contractor is selected and agreement are formed between General Contractor and Owner.Rate this question:
-
- 44.
Select the key individuals typically involved in a "Construction Management" Contractual Arrangement.
- A.
Owner
- B.
Subcontractor
- C.
General Contractor
- D.
Design Professional
- E.
Supplier
- F.
Vendor
- G.
Construction Manager
Correct Answer(s)
A. Owner
G. Construction ManagerExplanation
Construction Management is an agreement in which Owner hires a Construction Manager to coordinate the complete construction of the project. The Construction Manager acts as the agent for the Owner.Rate this question:
-
- 45.
Select the key individuals typically involved in a "Turn-Key" Contractual Arrangement.
- A.
Owner
- B.
Subcontractor
- C.
General Contractor
- D.
Design Professional
- E.
Supplier
- F.
Vendor
- G.
Construction Manager
Correct Answer(s)
A. Owner
C. General ContractorExplanation
The Turn-Key agreement is similar to design/build arrangement. The major difference is that the GC is responsible for financing and, in some instances, for locating a project site.Rate this question:
-
- 46.
Select the key individuals typically involved in a "Design/Build" Contractual Arrangement.
- A.
Owner
- B.
Subcontractor
- C.
General Contractor
- D.
Design Professional
- E.
Supplier
- F.
Vendor
- G.
Design/Build Professional
- H.
Construction Manager
Correct Answer(s)
A. Owner
D. Design ProfessionalExplanation
Design/Build is a method of project delivery in which one entity, the Design/Build Professional, enters into a single contract with the Owner to provide for both design and construction services.Rate this question:
-
- 47.
Typically, all contractors have the resources to perform all the work on a project.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The General Contractor is responsible for the physical construction of the project. The general contractor may have the resources to construct the total project, but typically performs only a portion of the work and hires specialty contractors called subcontractors to perform the remaining work.Rate this question:
-
- 48.
In a "Design/Bid/Build" (Traditional) Contractual Arrangement, who selects the design professional?
- A.
Owner
- B.
Subcontractor
- C.
General Contractor
- D.
Supplier
- E.
Vendor
- F.
Construction Manager
Correct Answer
A. OwnerExplanation
The Design / Bid / Build Agreement is considered to be Traditional. Owner selects and signs agreements with a design professional to prepare contract documents (working drawing, specs, agreement forms, bidding info, etc.) Through bidding process General Contractor is selected and agreement are formed between General Contractor and Owner.Rate this question:
-
- 49.
In a "Design/Bid/Build" (Traditional) Contractual Arrangement, who selects the Contractor?
- A.
Owner
- B.
Subcontractor
- C.
General Contractor
- D.
Supplier
- E.
Vendor
- F.
Construction Manager
Correct Answer
A. OwnerExplanation
the Design / Bid / Build Agreement is considered to be Traditional. Owner selects and signs agreements with a design professional to prepare contract documents (working drawing, specs, agreement forms, bidding info, etc.) Through bidding process General Contractor is selected and agreement are formed between General Contractor and Owner.Rate this question:
-
- 50.
List other contractual agreements besides the Design/Build (Traditional):
Correct Answer
Turn-Key
Design/Build
Construction ManagementExplanation
The given answer lists three other contractual agreements besides the Design/Build (Traditional): Turn-Key, Design/Build, and Construction Management. Turn-Key refers to a contract where the contractor takes full responsibility for the entire project, from design to completion. Design/Build is a contractual agreement where the contractor is responsible for both the design and construction of the project. Construction Management involves hiring a construction manager who oversees the project on behalf of the owner, coordinating various contractors and ensuring the project is completed successfully.Rate this question:
Quiz Review Timeline +
Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.
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Current Version
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Mar 20, 2023Quiz Edited by
ProProfs Editorial Team -
Mar 21, 2014Quiz Created by
Robinsch4818
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