Florida Contractor Business Management Flashcards
7 cards from real Florida General Contractor practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Florida Contractor Business Management flashcards as text
A Notice of Commencement in Florida is generally valid for how long unless a different period is specified?
Answer: 1 year
A Notice of Commencement is effective for one year unless the owner specifies a different expiration.
In double-entry bookkeeping, every debit must be matched by an equal what?
Answer: Credit
Double-entry accounting requires total debits to equal total credits for every transaction.
Which federal agency sets workplace safety standards that Florida contractors must follow?
Answer: OSHA
OSHA establishes and enforces workplace safety and health standards.
A contractor pays $1,200 for a 12-month insurance policy. What is the monthly prepaid expense amortization?
Answer: $100
The $1,200 premium spread over 12 months equals $100 recognized each month.
Retainage on a construction contract refers to what?
Answer: A portion of payment withheld until completion
Retainage is a percentage of each progress payment withheld until the work is satisfactorily completed.
What is the maximum retainage allowed on most Florida public construction contracts after 50% completion?
Answer: 5%
Florida law limits retainage on public projects to 5% after the project is 50% complete.
Which entity structure generally provides owners limited personal liability while allowing pass-through taxation?
Answer: Limited liability company (LLC)
An LLC combines limited liability protection with pass-through taxation to its members.