Florida General Contractor Florida Contractor Business Management 3 — Questions and Answers
Question 1: Under Florida's Construction Lien Law, within how many days must a subcontractor serve a Notice to Owner after first furnishing labor or materials?
- 45 days (Correct answer)
- 10 days
- 90 days
- 120 days
Correct answer: 45 days
A Notice to Owner must be served within 45 days of first furnishing labor or materials to preserve lien rights.
Question 2: A qualifying agent for a Florida contracting business is primarily responsible for what?
- Supervising the company's construction operations (Correct answer)
- Handling only payroll
- Selling the company's stock
- Marketing the business
Correct answer: Supervising the company's construction operations
The qualifying agent supervises the construction activities conducted under the company's license.
Question 3: In job costing, direct labor plus direct materials plus direct job overhead equals what?
- Total job cost (Correct answer)
- Gross profit
- Net profit
- Markup
Correct answer: Total job cost
Total job cost is the sum of direct labor, direct materials, and job overhead.
Question 4: How many days does an employer generally have to report a new hire to the Florida New Hire Reporting Center?
- 20 days (Correct answer)
- 45 days
- 90 days
- 5 days
Correct answer: 20 days
Florida employers must report newly hired employees within 20 days of the hire date.
Question 5: What does FICA tax fund?
- Social Security and Medicare (Correct answer)
- Unemployment benefits
- Workers' compensation
- State income tax
Correct answer: Social Security and Medicare
FICA funds Social Security and Medicare through combined employer and employee contributions.
Question 6: A contractor bids a job at $80,000 with costs of $64,000. What is the gross profit margin percentage?
- 20% (Correct answer)
- 25%
- 16%
- 80%
Correct answer: 20%
Gross profit of $16,000 divided by revenue of $80,000 equals a 20% margin.
Question 7: Which document is filed to formally terminate a contractor's recorded lien after payment?
- Satisfaction of lien (Correct answer)
- Notice to Owner
- Notice of Commencement
- Claim of lien
Correct answer: Satisfaction of lien
A satisfaction of lien is recorded to release the property once the lien is paid.
Florida General Contractor Florida Contractor Business Management 3
Under Florida's Construction Lien Law, within how many days must a subcontractor serve a Notice to Owner after first furnishing labor or materials?