CAPS CAPS Business Operations & Management 3

Question 1

Which business structure offers a CAPS professional personal liability protection while allowing pass-through taxation?

Accepted Answer

Limited Liability Company (LLC)

Answer

Sole proprietorship

Answer

General partnership

Answer

Non-profit organization

Question 2

A CAPS professional should document all project changes using a change order primarily to:

Accepted Answer

Ensure both parties agree on modifications to scope, cost, and schedule

Answer

Delay project completion

Answer

Avoid paying for materials

Answer

Satisfy the local historical society

Question 3

For a CAPS professional, workers' compensation insurance is required when:

Accepted Answer

The business employs workers who could be injured on the job

Answer

Working on projects over $10,000

Answer

Clients are over the age of 85

Answer

Projects are located in flood zones

Question 4

Which pricing strategy is commonly used by CAPS professionals for complex aging-in-place renovations?

Accepted Answer

Cost-plus pricing, adding a markup to cover overhead and profit

Answer

Charging a flat rate regardless of project scope

Answer

Matching the lowest competitor price automatically

Answer

Charging only for materials, not labor

Question 5

What is the primary purpose of a project punch list at the end of an aging-in-place modification?

Accepted Answer

To document incomplete or defective items that must be corrected before final payment

Answer

To list future clients

Answer

To record the homeowner's personal schedule

Answer

To inventory the client's existing furniture

Question 6

When marketing aging-in-place services, targeting adult children of elderly parents is effective because:

Accepted Answer

They are typically the decision-makers and funders for a parent's home modifications

Answer

They are easier to find online than seniors

Answer

They have no interest in their parents' living conditions

Answer

CAPS guidelines require it