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

An LLC provides personal liability protection, shielding the owner's personal assets from business debts, while income passes through to the owner's personal tax return.

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

Change orders create a written record that both the contractor and client have agreed to any modifications in scope, cost, or timeline, preventing future disputes.

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

Workers' compensation insurance is required when employing workers, covering medical expenses and lost wages if an employee is injured on the job.

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

Cost-plus pricing ensures all direct costs are covered while adding a consistent markup to account for overhead and deliver a fair profit margin.

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

A punch list documents all remaining tasks or corrections needed, ensuring nothing is overlooked before the project is considered complete and final payment is released.

(CAPS) Certified Aging-in-Place Specialist Practice Test

(CAPS) Certified Aging-in-Place Specialist Practice Test

CAPS CAPS Business Operations & Management 3