CFP Business Management & Operations Flashcards
6 cards from real CFP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CFP Business Management & Operations flashcards as text
Which document formally outlines the scope of work, payment terms, and project timeline between a fence contractor and a client?
Answer: Written contract
A written contract protects both parties by clearly defining the scope, cost, and schedule for the fencing project.
What is the primary purpose of maintaining accurate job costing records for a fencing contractor?
Answer: To track profitability and improve future estimates
Job costing records help contractors compare actual costs to estimates, identify inefficiencies, and price future projects more accurately.
A fence contractor's general liability insurance primarily protects against which type of claim?
Answer: Third-party bodily injury or property damage
General liability insurance covers claims from third parties (such as homeowners or bystanders) for bodily injury or property damage caused by the contractor's operations.
When a client requests additional work beyond the original contract scope, a fence contractor should issue a:
Answer: Change order
A change order documents any additions, deletions, or modifications to the original contract scope and adjusts the contract price accordingly.
Which business license is typically required for a fence contractor to legally operate in most U.S. states?
Answer: State contractor's license
Most U.S. states require fence contractors to hold a state-issued contractor's license, which may involve passing an exam and carrying required insurance.
What does 'accounts receivable' represent on a fence contractor's financial records?
Answer: Money clients owe the contractor for completed work
Accounts receivable represents the outstanding amounts owed to the contractor by clients for services already rendered but not yet paid.