FLORIDA BUSINESS
FINANCE PRACTICE EXAM
Question 1: In Florida's construction industry, an employer with how many
employees generally triggers workers' compensation coverage requirements?
Choices:
1) One or more employees 2) Four or more employees only 3) Ten or more employees 4) Fifty or more employees
Correct Answer: One or more employees
Explanation: Florida workers' compensation rules generally require construction-industry employers with one or more employees to maintain coverage, subject to statutory exemptions.Page 1
Question 2: A hiring manager rejects a quali�ed applicant solely because of a protected characteristic. What is the main compliance concern?
Choices:
1) Unlawful employment discrimination 2) Inventory shrinkage 3) Improper depreciation 4) Bid shopping
Correct Answer: Unlawful employment discrimination
Explanation: Employment decisions should comply with applicable anti-discrimination laws and be based on lawful job-related criteria.
Question 3: Direct labor is $40,000, materials are $65,000, subcontractors are
$55,000, and direct equipment cost is $10,000. What is total direct job cost?
Choices:
1) $105,000
2) $150,000
3) $170,000
4) $210,000
Correct Answer: $170,000
Explanation: $40,000 + $65,000 + $55,000 + $10,000 = $170,000.
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Question 4: An approved progress billing is $200,000 and the contract requires 10% retainage. How much retainage is withheld from that billing?
Choices:
1) $10,000
2) $20,000
3) $180,000
4) $220,000
Correct Answer: $20,000
Explanation: $200,000 × 10% = $20,000 retainage.
Question 5: What does a payment bond primarily protect against?
Choices:
1) Covered nonpayment claims of subcontractors, laborers, and suppliers 2) Design errors by the architect 3) The owner's �nancing costs 4) Damage to the contractor's o�ce furniture Correct Answer: Covered nonpayment claims of subcontractors, laborers, and suppliers Explanation: A payment bond provides payment protection to qualifying subcontractors, laborers, and suppliers on the bonded project.Page 3