Business and Law Practices Flashcards
7 cards from real Licensed Electrical Contractor practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Business and Law Practices flashcards as text
Which type of business entity provides personal liability protection for its owners while allowing profits and losses to pass through to personal tax returns?
Answer: Limited Liability Company (LLC)
An LLC provides the liability protection of a corporation with pass-through taxation, avoiding the double taxation of a C-corporation.
An electrical contractor receives an RFI (Request for Information) from a general contractor. The electrical contractor should:
Answer: Respond in writing within the timeframe specified in the contract
RFIs must be responded to in writing within contract-specified timeframes to maintain documentation and avoid project delays.
A contractor's 'accounts receivable' represents:
Answer: Money owed TO the contractor by clients for completed work
Accounts receivable is money owed to the contractor by customers for work already performed but not yet collected.
Under Title VII of the Civil Rights Act, an electrical contractor employing 15 or more workers is prohibited from discriminating in hiring based on:
Answer: Race, color, religion, sex, or national origin
Title VII prohibits employment discrimination based on race, color, religion, sex, or national origin for employers with 15 or more employees.
A 'notice to proceed' (NTP) issued by a project owner to an electrical contractor officially:
Answer: Grants the contractor permission to begin work on a specified date
A notice to proceed is the owner's formal authorization for the contractor to mobilize and begin construction work on the specified start date.
Which method of accounting recognizes revenue when it is earned and expenses when they are incurred, regardless of when cash is received or paid?
Answer: Accrual basis accounting
Accrual accounting records revenue when earned and expenses when incurred, providing a more accurate picture of financial performance over time.
A contractor discovers mid-project that a required inspection was not performed before covering installed conduit. The best course of action is to:
Answer: Notify the AHJ immediately and uncover the work for inspection if required
Skipping required inspections is a code violation; the contractor must notify the authority having jurisdiction (AHJ) and uncover the work if directed.