1st HVAC TEST

A federal Employer Identification Number (EIN) is obtained by contacting the IRS and requesting form:

• W-2
• W-4
• I-9
• SS-4

Federal Employer Identification Numbers (EIN) are issued by the:

• Secretary of State
• State Contractors Board
• Internal Revenue Service (IRS)
• County Clerks Office

A Minority Business Enterprise (MBE) company must be at least ___ owned, operated, and directed by a minority or disadvantage individual

• 50%
• 51%
• 90%
• 100%

A contractor's business is likely to fail for all the following reasons EXCEPTP:

• Lack of precise record keeping
• Problems relating to tax issues
• Problems relating to financial planning and cash flow
• Problems associated with construction

Since all partners are individually liable for the debts and obligations of the partnership, it is essential that a ____ be drawn up to specify the rights and responsibilities of the partners

• Written Agreement
• Performance Bond
• Partnership Proposal
• All of the above

If a contractor is operating as the sole proprietor of his business, how must he file his income tax return?

• Submit Form 1120 on the 15th day of March
• Submit Form 1120-S on the 15th day of March
• Submit Form 1065 on the 15th day of April
• Submit Schedule C with his individual income tax return

Which of the following is NOT an advantage of a sole proprietorship?

• It is easy to establish and maintain
• The owner has full control of the business
• Ownership is freely transferable
• The owner has unlimited personal liability

Which of the following is an advantage of a sole proprietorship?

• Low start-up costs
• All profits go to the owner
• The owner has full control of the business
• All of the above

The ____ is the simplest and least expensive business entity to setup

• Sole Proprietorship
• Corporation
• General Partnership
• LLC

A _____ is a general partnership typically formed to carry out a particular business transaction or project, rather than one intended to continue indefinitely. Typically, they are established in the construction industry when two or more people or companies work together to complete a specific project

• Sole Proprietorship
• Limited Partnership
• Joint Venture
• Corporation