FCC FCC Business and Professional Practices 1 — Questions and Answers
Question 1: What is the primary purpose of a written contract between an FCC provider and a family?
- To outline fees, hours, and policies to protect both parties (Correct answer)
- To replace the need for a state license
- To serve as the child's enrollment record at school
- To satisfy federal tax requirements automatically
Correct answer: To outline fees, hours, and policies to protect both parties
A written contract clearly establishes fees, hours, and policies so both the provider and family have shared expectations and legal protection.
Question 2: Which record-keeping practice is most important for an FCC provider to maintain for tax purposes?
- Tracking all business income and allowable expenses throughout the year (Correct answer)
- Keeping only enrollment forms and emergency contacts
- Saving receipts only for items costing more than $100
- Recording only payroll if staff are employed
Correct answer: Tracking all business income and allowable expenses throughout the year
Tracking all income and deductible business expenses year-round ensures accurate tax filing and maximizes legitimate deductions for the FCC provider.
Question 3: The Time-Space Percentage is used by FCC providers primarily to calculate:
- The deductible portion of home expenses for taxes (Correct answer)
- The ratio of indoor to outdoor play time
- The percentage of children with special needs
- The provider's staff-to-child ratio compliance
Correct answer: The deductible portion of home expenses for taxes
The Time-Space Percentage determines what share of home expenses—such as mortgage, utilities, and repairs—can be deducted as business costs on the provider's taxes.
Question 4: Which of the following is considered an ethical obligation of an FCC provider under professional codes of conduct?
- Maintaining confidentiality of families' personal information (Correct answer)
- Sharing children's behavioral reports with neighborhood parents
- Discussing a family's financial situation with other enrolled families
- Posting children's full names on social media without consent
Correct answer: Maintaining confidentiality of families' personal information
Professional ethics require FCC providers to keep all family and child information strictly confidential, sharing it only with authorized parties.
Question 5: An FCC provider should include which item in a written sick-child policy?
- Clear criteria for when a child must be excluded due to illness (Correct answer)
- A list of acceptable home remedies the provider can administer
- A requirement for parents to call the pediatrician before drop-off
- Instructions for other enrolled children to avoid the sick child
Correct answer: Clear criteria for when a child must be excluded due to illness
A sick-child policy must specify exclusion criteria—such as fever thresholds or symptom types—so families know when to keep their child home.
Question 6: When setting tuition rates, an FCC provider should consider all of the following EXCEPT:
- The hair color of enrolled children (Correct answer)
- Local market rates for comparable child care
- The true cost of providing quality care
- Provider's credentials and years of experience
Correct answer: The hair color of enrolled children
Hair color of children is completely irrelevant; rates should reflect market data, actual costs, and the provider's qualifications.
FCC FCC Business and Professional Practices 1
What is the primary purpose of a written contract between an FCC provider and a family?