Florida Business & Finance Exam Questions

What is on my Florida Business & Finance Exam

You MUST first sign up for your State Exam(s) and pay online at www.floridaexam.com



Below is the breakdown of questions on my Florida Business & Finance Exam ? 

Area A (11%): Establishing the Contracting Business
1. Determining the Business Organizational Structure: business structure laws and regulations, fiduciary responsibilities of officers and directors, open vs. closed corporations, organizational charts and chain of responsibilities, state and local licensure requirements, tax advantages and/or liabilities for various business structures
2. Develop the Business Plan: accounting practices, local marketplace, scope of contractor license
3. Establish Relationships with Other Professionals: accountant specialization, attorney specialization, insurance types and limitations, underwriting requirements for bonding
4. Acquire Fixed Assets: knowledge advantages/disadvantages of business location
5. Obtain Insurance : accounting practices, advantages/disadvantages of various types of insurance, coverages and limitations of insurance
Content Area B (26%): Managing Administrative Duties
1. Develop the Business: availability of staffing for business operation, income sources, markets and market share
2. Determine Outsourced Services
3. Determine Business Overhead: FICA, advertising costs (business cards, dues, printing, etc.), communication costs (cell phones, land lines, etc.), cost of sales (travel expenses), federal unemployment (FUTA), general liability rates, lease expenses, loan financing expenses (interest, etc.), Medicare rates, rent costs, state unemployment (SUTA), utility costs, worker’s compensation
4. Preparing Bids/Proposals: accounting principles, AIA documents, business projections/goals current status, company overhead, contract documents, contract law, cost of financing projects, costs associated with growth, general conditions costs of projects, how to review contracts, how to write offer, insurances associated with labor rates, labor productivity, statute of frauds, taxes associated with labor rates, components of valid contract
5. Purchase Materials/Supplies: depreciative costs, fundamentals of Uniform Commercial Code, inventory system operation (FIFO, etc.), invoice approval systems, negotiating skills, purchasing systems, receiving systems, state sales tax laws, statute of frauds, vendors in area
6. Prepare Invoices/Draw Requests: basic math skills, calculation of percentage of work completed, contract/subcontract documents, how to prepare invoices/draw requests, lien laws
7. Develop a Safety Program: drug testing regulations, MSDS sheets, OSHA regulations
8. Maintain Insurance: general terms and definitions used in policies, insurance policies, limits of insurance, various types of insurance, various types of risk
9. Managing Contracts: contract law, contract scope, job completion schedules, lien laws, mediation and arbitration processes, local building code requirements, tort law, risk management
Content Area C (10%): Managing Trade Operations
1. Schedule Trade Operations: critical path method (CPM), delivery times, manufacturing times, requests for information (RFI), sequencing trades, submittals/approval/fabrication process
2. Maintain OSHA/Safety Records: document/record retainage requirements, knowledge penalties for non-compliance with OSHA
3. Purchase/Order Materials & Supplies: accounting skills, basic math skills, job schedules, negotiation skills, organizational skills, plan reading skills, quality control, quantity take-offs, terms and abbreviations on invoices, types of building materials
4. Leasing/Purchasing Equipment: cost of operation of equipment, depreciation, equipment operation, forecasted use of purchased equipment, interest costs for financing, maintenance, salvage resale values, support equipment required for equipment, tax credits associated with purchases, training needs for equipment, transportation costs for equipment
5. Manage Material/Tool/Equipment Inventory: equipment maintenance procedures, inventory methods
Content Area (32%): Conducting Accounting Functions
1. Manage Accounts Receivable: accounting principles, basic math skills, computer skills, lien laws
2. Manage Accounts Payable: accounting principles, basic math skills, computer skills, how to calculate discounts, lien laws
3. Manage Cash Flow: accounting, banking, basic math skills, financial ratios
4. File Tax Forms & Returns: accounting principles, basic math, federal tax laws, property tax laws, record keeping requirements, sales tax laws, state tax laws
5. Track Job Costs: accounting principles, basic math
6. Calculate Employee Payroll: accounting, state & federal tax laws, basic math, employment laws, employment/labor laws, hierarchy of garnishments
Content Area E (6%): Managing Human Resources
1. Hire New Employees: employment laws, discrimination laws, interviewing skills, required forms for new hires, background checks
2. Develop Human Resource Policies & Procedures: employment/labor laws, OSHA, chain of custody (drug tests), insurance regulations
3. Evaluate Employees: employment/labor laws
Content Area F (15%): Complying with Government Regulations
1. Comply with Federal Laws & Regulations: FEMA (immigration components), OSHA, tax laws, National Pollution Discharge Elimination System (NPDES), Environmental laws
2. Comply with State Laws& Regulations: Chapter 455 F.S. (Business & Professional Regulation), Chapter 713 F.S. (Liens), 61G4 F.A.C., Worker’s Compensation, Laws/DOR Sales/Use Tax, Chapter 489, Part 1 F.S (Construction Contracting), required continuing education, CEU credit records, license holder responsibilities.


Florida Business & Finance Exam Questions


Frequently Asked Questions Examination Scheduling and Fees Construction Industry Licensing Board (CILB) 1. Q. When did the CILB Business and Finance examination part go computer based testing? A. The CILB Business and Finance examination began CBT scheduling and administration on January 5, 2009. 2. Q. How do I apply to take the CBT Business and Finance Examination? A. Contact or apply to Professional Testing Inc. (PTI) by either calling 407-264-0562 or online at: http://www.floridaexam.com/. 3. Q. What are the fees to register for the Construction examination? A. Scheduling: All parts of the examination: Credit card payment of $215.00 to PTI is now available. *(Covers the examination development, application and administration fees). If paying by check, submit $135.00 payable to PTI and a separate $80.00 check to PTI made payable to DBPR. An $80.00 examination administration fee is payable to Pearson VUE, the CBT contracted vendor, at the time of scheduling for the Business and Finance examination. Updated June 26, 2012 Contract Administration, Project Management, or Trade Knowledge only: Fee of $135.00 examination development and application fee to PTI, $80.00 examination administration to DBPR. Credit card payment of $215.00 to PTI is acceptable. Business and Finance Exam only: A $135.00 examination development and application processing fee payable to PTI and an $80.00 examination administration fee payable to Pearson VUE, the CBT vendor, at the time of scheduling the examination. 4. Q. I have registered with PTI for the entire examination but I haven’t been scheduled with Pearson VUE. A. After registering with PTI, allow 5 to 7 days for DBPR to update and send your authorization to Pearson VUE. 5. Q. How do I pay Pearson VUE for the Business and Finance? A. Candidates must pay the examination administration fee at the time of reservation by credit card or electronic check, personal checks are not accepted. Candidates who cannot use these payment options should contact Pearson VUE to arrange to pre-pay the examination fee. Payment are not accepted at the test center. Examination fees are non- refundable and non-transferable. 6. Q. Can I pay the $80.00 DBPR examination administration fee via Credit or Debit card? A. Yes, DBPR examination administration fee must be paid to PTI at the time of Applying and credit cards are accepted. You can pay PTI $215.00 by credit card. 7. Q. When will I get my authorization to schedule the Business and Finance Examination? A. Authorizations with scheduling instructions will be mailed or emailed to each candidate from Pearson VUE after the application and/or retake application has been approved. Once you receive your authorization, contact Pearson VUE toll free, 888-204-6230 to schedule your CBT Business and Finance examination or online at http://www.pearsonvue.com/. 8. Q. What will I need to schedule my CBT examination? A. You will need your authorization, social security number, form of payment, and know the name of the examination you’ve been authorized to take. Also view the following instructions on this web link: http://www.myfloridalicense.com/dbpr/servop/testing/documents /prof_reg_faq.pdf 9. Q. Will I be allowed to take my reference books inside the examination room and will there be ample space for storage? A. Yes. 10. Q. How much time is allotted for the Business and Finance CBT examination? A. You will have 6 hours and 30 minutes to complete your examination. Pool Service category candidates will receive 3 hours and 30 minutes to complete the examination. This includes pilot items. 11. Q. Will I receive a grade report at the exam site? A. Yes. Once you have completed your examination. 12. Q. Why do scores have fractional values? A Since we are dividing the number of correct answers by the total number of questions on the exam to calculate a percentage, it is possible to get scores with fractional values when the number of questions on the examination is not a multiple of 100. For example, the Business and Finance examination consists of 120 questions. A candidate who answered 88 questions correctly would get a score of 73.33% (88 divided by 120.) For all examinations where the number of “real” questions is a multiple of 10, 70% correct will correspond to a whole number, for example 84 divided by 120 is exactly 70%. 13. Q Why aren’t scores rounded up? A The CILB rules prohibit rounding of scores. A candidate must achieve at least 70% in order to pass the examination. Rounding would not make any difference since the minimum passing score for almost all of the examinations comes out to be a whole number, the only exceptions to this are the Residential Contractor Contract Administration and Project Management examinations, which have 45 questions each. 70% of 45 equals 31.5; however, it is impossible to answer only half a question correctly. A candidate who answered 31 out of 45 questions correctly would have a score 68.89% which if rounded to the nearest whole number would be 69%, neither of which is a passing score. Candidates must answer 32 out of 45 questions correctly to pass these examinations. The Plumbing General Trade Knowledge examination has a total of 160 possible points. To pass this examination a candidate must have a score of 112 out of 160 possible points. A score of 111 out of 160 comes to 69.38% which would be rounded down to the nearest whole number, not up because the decimal is less than .50. 14. Q How are Isometrics Drawings scored? A The Isometric drawings are graded by teams of three licensed plumbing contractors who serve as examiners (Subject Matter Experts). Teams of examiners will score the Isometric drawings. Each examiner independently scores every drawing as pass or fail on eight different criteria (legibility, orientation, flow, angles, piping, labeling, vents, and fixtures.) At least two out of the three examiners must agree that the criteria have been met in order for points to be awarded. The points awarded for all correct criteria are added together and converted to a 10 point scale to determine the score for each drawing. The number of points awarded for each drawing is then added to the total number of correct answers obtained on the multiple choice questions during the morning and afternoon sessions. This figure is then divided by the total number of possible points (160) to obtain the percentage correct score. 15. Q Do I have to do the Plumbing Isometrics? A The 5 Isometric Drawings on the Plumbing examination are worth 10 points each, for a total of 50 points. There are 110 multiple choice questions that are worth 1 point each. Thus a total of 160 points is the maximum possible score. 50 out of 160 points equals 31.25%. Since the minimum passing score is 70%, it is not possible to pass this examination unless at least some points are earned for the Isometrics. 16. Q. If I fail the CBT Business and Finance examination, how do I re-apply? A. You must submit a retake examination application to PTI and pay the appropriate examination development and application fee of $135.00, and the examination administration fee of $80.00 to Pearson VUE when you reschedule. 17. Q. If I fail one or more portions of the examination, do I have to retake all parts? A. No. Rule 61G4-16.009, Florida Administrative Code, states, “A candidate shall be required to retake only the tests on which he or she failed to achieve a passing score or failed to appear to take when scheduled.” Starting November 1, 2011, a candidate must pass all parts of the examination within four years of the first administration attempt. 18. Q. How soon may I retake the examination if I fail the Business and Finance portion? A. You must wait 21 days before you re-take the examination again. 19. Q. Will I be allowed to review my Business and Finance examination if I fail? A. Yes, however only your last administered failed examination. You must request the Review within 21 days from the Grade Report date. You will schedule your review with Pearson VUE as you would the examination. The review fee is $35.00 payable to Pearson VUE, 20. Q. When I pass all parts of the CILB examination, how do I apply for my license? A. To apply for your license with DBPR, please visit the Department website at: http://www.myfloridalicense.com/dbpr. Include with your license application, the appropriate fees as mentioned in the application fees below: FEES: IF ALL EXAM PARTS WERE PASSED PRIOR TO JANUARY 1, 2009: Applying for initial licensure from MAY 1 st of an EVEN YEAR through AUGUST 31 st of an ODD YEAR – $409 OR Applying for initial licensure from SEPTEMBER 1 st of an ODD YEAR through APRIL 30 th of an EVEN YEAR – $309 IF ANY EXAM PART WAS PASSED AFTER JANUARY 1, 2009: Applying for initial licensure from MAY 1 st of an EVEN YEAR through AUGUST 31 st of an ODD YEAR – $249 OR Applying for initial licensure from SEPTEMBER 1ST OF an ODD YEAR through APRIL 30th of an EVEN YEAR - $149 If you have additional questions, please feel free to contact the DBPR Customer Contact Center at 850.487.1395 or Bureau of Education and Testing (BET) at 850.488.5952