Free Georgia Business & Law Exam Practice Questions

Sample Practice Questions

Try these 10 sample questions from the Georgia Business & Law Exam practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

1. 1Which project falls within the Georgia Residential-Basic contractor category described in the licensing statute?

   1. A.A detached two-family residence of three storiesCorrect answer: A
   2. B.A four-story detached single-family residence
   3. C.A five-story apartment building
   4. D.A four-story commercial office building

   Explanation: The Georgia Board's chart states: "detached onefamily and two-family residences and one-family townhouses not over three stories in height and their accessory buildings and structures." The definition covers the three-story two-family residence. The four-story residence exceeds the height limit; the apartment and office buildings are outside the stated basic residential category.

   Reference: Georgia State Licensing Board Licensure Comparison Chart — PDF p.1, License Definitions—Residential Basic Contractor

2. 2Before bids are due, the owner revises the specifications and formally distributes the revision. What document incorporates that revision into the bid package?

   1. A.An addendumCorrect answer: A
   2. B.A payment application
   3. C.A notice of completion
   4. D.A bid bond

   Explanation: NASCLA states: "If changes are made to a bid package before it is due, an addendum is issued." An addendum changes the pre-award bid documents. A payment application requests payment, a completion notice concerns project status, and a bid bond secures the bid rather than revising specifications.

   Reference: NASCLA Bidding and Estimating — Chapter 7, PDF p.2, Bid Documents

3. 3What personal-liability feature distinguishes a sole proprietorship from a separate business entity?

   1. A.The owner's liability is limited to unpaid shares.
   2. B.The owner can be personally liable for business debts.Correct answer: B
   3. C.The owner's liability transfers to a board of directors.
   4. D.The owner's liability ends upon filing a trade name.

   Explanation: The SBA states: "You can be held personally liable for the debts and obligations of the business." A sole proprietorship does not separate the owner's assets and obligations. Share limits, board management, or a trade-name filing do not give this structure a liability shield.

   Reference: SBA Launch Your Business — Choose a business structure—Sole proprietorship

4. 4Which pair of federal taxes is included in self-employment tax for a self-employed contractor?

   1. A.Federal income and federal unemployment taxes
   2. B.Federal excise and federal unemployment taxes
   3. C.Social Security and Medicare taxesCorrect answer: C
   4. D.Federal income and federal excise taxes

   Explanation: The IRS states: "Self-employment tax (SE tax) is a Social Security and Medicare tax primarily for individuals who work for themselves." Self-employment tax concerns Social Security and Medicare. Federal income tax, unemployment tax and excise tax are separate tax categories and cannot replace either component.

   Reference: IRS Business Taxes — Self-employment tax

5. 5A covered, nonexempt employee works 46 hours in one workweek at a regular rate of $24 per hour, with no bonuses or other pay. What is the minimum total pay required by the FLSA?

   1. A.$1,104
   2. B.$1,176Correct answer: B
   3. C.$1,248
   4. D.$1,656

   Explanation: The Department of Labor states: "employees covered by the Act must receive overtime pay for hours worked in excess of 40 in a workweek at a rate not less than time and one-half their regular rates of pay." Regular pay=40×$24=$960; overtime=6×($24×1.5)=$216; total=$1,176. $1,104 pays straight time for46 hours; $1,248 pays double time for the6 overtime hours; $1,656 pays all46 hours at time-and-a-half. Dollar results are exact. Larger amounts could satisfy the law but are not the minimum asked for.

   Reference: U.S. DOL Fact Sheet23, Overtime Pay Requirements — Requirements

6. 6Two independent task chains must both finish before project turnover. Chain A takes 4 then 6 working days; Chain B takes 3 then 5 working days. With no resource limits, lags, or other work, what is the earliest turnover time?

   1. A.8 working days
   2. B.10 working daysCorrect answer: B
   3. C.6 working days
   4. D.18 working days

   Explanation: The source states: "estimate the minimum Program or project duration by calculating the longest path through the schedule logic network" Chain A=4+6=10 days; Chain B=3+5=8 days. Both must finish, so max(10,8)=10 working days. Eight uses the shorter chain; six uses only the longest individual task; eighteen incorrectly sums parallel chains. No rounding applies.

   Reference: NASA Program Planning and Control Glossary — Critical Path Method (CPM)

7. 7In a construction contract, the contractor promises services and the owner promises payment. Which contract element does this exchange illustrate?

   1. A.Recitals
   2. B.Jurisdiction
   3. C.ConsiderationCorrect answer: C
   4. D.Arbitration

   Explanation: NASCLA states: "Both parties must give up something of value to have consideration." The exchanged promises supply value. Recitals give background, jurisdiction concerns the forum, and arbitration is a dispute process rather than the exchange that supports the agreement.

   Reference: NASCLA Contract Management — Chapter8, Consideration

8. 8Which type of surety bond primarily protects the customer's interest in completion of the contractor's promised work?

   1. A.Payment bond
   2. B.Bid bond
   3. C.Performance bondCorrect answer: C
   4. D.License bond

   Explanation: The source states: "Performance Ensures full completion of a contract by small business." A performance bond addresses completion. A payment bond protects suppliers/subcontractors, a bid bond addresses the bidder's bonding commitment, and a license bond concerns licensing obligations.

   Reference: SBA Surety Bonds — The right surety bond for the project—Performance

9. 9Under OSHA's construction accident-prevention requirements, who should perform the employer's frequent and regular site, material, and equipment inspections?

   1. A.Any licensed trade subcontractor regardless of inspection competence
   2. B.Competent persons designated by the employerCorrect answer: B
   3. C.Only an outside inspector hired by the owner
   4. D.Any employee selected solely by seniority

   Explanation: OSHA states: "Such programs shall provide for frequent and regular inspections of the job sites, materials, and equipment to be made by competent persons designated by the employers." The rule requires employer-designated competent persons. Trade licensure alone, owner selection alone or seniority alone does not establish the required competence and designation.

   Reference: OSHA General Construction Safety and Health Provisions — 29CFR1926.20(b)(2)

10. 10A proposed multifamily building is three stories, 20,000 square feet in aggregate interior floor space, wood framed, and not a listed special-hazard occupancy. Which Georgia category specifically adds this work beyond Residential-Basic scope?

    1. A.Residential-Basic contractor
    2. B.Residential-Light Commercial contractorCorrect answer: B
    3. C.Electrical contractor
    4. D.Plumbing contractor

    Explanation: The Georgia Board's chart states: "such contractor work or activity related to multifamily and multiuse light commercial buildings and structures, and their related accessory buildings and structures, which are less than four stories in height; less than 25,000 square feet in aggregate interior floor space" The stated height, floor area, framing and nonhazard conditions match the light-commercial category. Basic scope does not cover this multifamily building; the two specialty licenses do not authorize overall building construction. This identifies the category adding the work, not the only license that could cover it.

    Reference: Georgia State Licensing Board Licensure Comparison Chart — PDF p.1, License Definitions—Residential-Light Commercial Contractor