Licensed Electrical Contractor Business and Law Practices 2

Question 1

A licensed electrical contractor's bond primarily protects against which situation?

Accepted Answer

Financial loss caused by the contractor's failure to complete the work

Answer

A contractor's bond protects the client (obligee) against financial loss if the contractor fails to fulfill contractual obligations.

Question 2

Under the Fair Labor Standards Act (FLSA), which employees are generally entitled to overtime pay at 1.5x their regular rate?

Accepted Answer

Non-exempt employees working more than 40 hours per week

Answer

The FLSA requires non-exempt employees to be paid 1.5 times their regular rate for hours worked beyond 40 in a workweek.

Question 3

Which financial statement shows a company's assets, liabilities, and owner's equity at a specific point in time?

Accepted Answer

Balance sheet

Answer

A balance sheet is a snapshot of a company's financial position — assets, liabilities, and equity — at a single date.

Question 4

When bidding on a public works project in most states, an electrical contractor is required to pay employees at least the:

Accepted Answer

Prevailing wage rate for the trade

Answer

Public works projects are governed by prevailing wage laws (e.g., Davis-Bacon Act federally) requiring contractors to pay the locally determined prevailing wage.

Question 5

An electrical contractor issues a notice to the property owner stating the contractor intends to file a lien if payment is not received. This is called a:

Accepted Answer

Preliminary notice (pre-lien notice)

Answer

A preliminary notice (pre-lien notice) is sent before filing a mechanic's lien to preserve lien rights and notify the owner of the potential lien.

Licensed Electrical Contractor Practice Test

Licensed Electrical Contractor Practice Test

Licensed Electrical Contractor Business and Law Practices 2