IHI765

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1. The highest costs associated with starting an electrical contracting business result from
A. acquiring equipment.
B. obtaining federal licenses.
C. paying receptionists.
D. purchasing dental insurance.
2. A(n) _______ helps others with an interest in your business understand what you plan on accomplishing and how you intend to meet their goals.
A. act of partnership C. business card B. self-inventory D. business plan
3. Maslow’s Hierarchy is a theory that helps explain why
A. most electrical contracting businesses fail during the first year.
B. one might be motivated to become a successful electrical contractor.
C. most contractors hire college graduates.
D. electrical contractors have such high incomes.
4. Electrical contractors must have the ability to _______ with sub-contractors, suppliers, attorneys, salespeople, and many other individuals involved with their business.
A. intelligently communicate C. discuss their own finances
B. aggressively compete D. trade capital shares
5. You can find detailed information about construction projects available for bid in particular areas in the
A. Bidding Report. C. Dodge Report.
B. Business Forecast. D. Prime Rate Forcast.
6. In a _______ business structure, the owner assumes total financial liability for the company.
A. sole proprietorship C. corporation
B. partnership D. single assumption
7. The practice of purchasing simple hardware as well as all electrical equipment on an as-needed basis generally means that the
A. contractor will always have the required parts from the supplier.
B. company’s productive time will be reduced.
C. contractor will have to spend more money on parts and materials.
D. company’s travel time will be cut.
8. It’s a smart decision to open your business at a time when its name will appear in the updated edition of your
A. Dodge Report. C. stock market report.
B. building permit list. D. local telephone directory.
9. A(n) _______ tells the customer that the contractor will appropriately complete the work in a timely manner or make financial compensation to the customer.
A. electrical permit C. Master’s Electrician License
B. assurance bond D. hazardous location permit
10. The ability to plan projects, lead a team of workers, and oversee finances are all _______ skills.
A. electrical C. performance
B. management D. psychological
11. _______ is normally paid by electrical contractors who purchase materials from their established supplier.
A. Retail price C. Draw price
B. Markup D. Wholesale price
12. Successful electrical contracting businesses are started by
A. electrical engineers in big cities.
B. individuals who take over an established corporation.
C. those who have experience in the electrical trade.
D. operations managers who deal only with finances and marketing.
13. To profit from the booming market, many electrical contractors have or wish to add a _______ department to their business structure.
A. commercial C. residential
B. marketing D. service
14. _______ allow for more capital investment into the business than a sole proprietorship but do not remove the contractor’s personal financial liability.
A. Partnerships C. Stock market investments
B. Deregulations D. Capital allocations
15. To oversee the general business of the corporation, many large electrical contracting companies employ a(n)
A. sole proprietor. C. operations manager.
B. financial advisor. D. controlling stockholder.
16. Many cities require that the owner of an electrical contracting business hold a(n)
A. college degree in business or electrical engineering.
B. weekly inspector’s conference.
C. apprentice, financially liable for all faulty work.
D. current Master Electrician’s License.
17. Electrical contracting companies that have become _______ can be identified by the Inc. abbreviation.
A. partnerships C. corporations
B. sole proprietorships D. employers of over 20 workers
18. In order to avoid problems with employee conduct, company management may determine
A. employment benefits. C. material draw agreements.
B. company policies and rules. D. supplier contracts.
19. When planning for the grand opening event of your business, you should
A. invite electrical inspectors to the event in the hopes that they’ll not delay your future work.
B. sponsor an expensive and extravagant event.
C. target the event towards those who will eventually need your services.
D. advertise the event in your area, surrounding cities, and neighboring states.
20. When determining the specialty of your new contracting business, it’s recommended that you
A. specialize in all areas of electrical work.
B. focus on the area in which you’re most skilled and expand into other areas as your company grows.
C. specialize your area of expertise and hire employees who specialize in all the other areas.
D. focus on a specialty that most other contractors in the community specialize in.