Under Florida Statute Chapter 455, what is the maximum administrative fine that can be imposed for unlicensed contracting activity?
Correct Answer
D) $10,000
Florida Statute 455.227 allows for administrative fines up to $10,000 per violation for unlicensed activity. This substantial penalty emphasizes the importance of maintaining proper licensing for all contracting work.
Why This Is the Correct Answer
Florida Statute 455.227 specifically authorizes the Department of Business and Professional Regulation to impose administrative fines up to $10,000 per violation for unlicensed contracting activity. This maximum penalty amount is clearly established in the statute and represents the highest administrative fine that can be levied without going through criminal proceedings. The $10,000 limit applies to each separate violation, meaning multiple violations can result in cumulative fines exceeding this amount.
Why the Other Options Are Wrong
Option A: $1,000
$5,000 is half of the actual maximum fine allowed under Florida Statute 455.227 and does not reflect the full penalty authority granted to regulators.
Option B: $5,000
$1,000 is significantly lower than the actual statutory maximum and would represent a minimal deterrent for unlicensed activity in the construction industry.
Memory Technique
Think 'Perfect 10' - Florida allows up to a perfect $10,000 administrative fine for unlicensed contracting to maintain perfect industry standards.
Reference Hint
Florida Statutes Chapter 455 - Business and Professional Regulation General Provisions, specifically Section 455.227 regarding violations and penalties
More Business & Finance Questions
A general contractor purchases equipment worth $45,000 with a useful life of 9 years and no salvage value. Using straight-line depreciation, what is the annual depreciation expense?
What is the typical recommended coverage amount for general liability insurance for a small to medium-sized general contracting business?
A contractor estimates startup costs of $75,000 for equipment, $25,000 for initial inventory, $15,000 for insurance premiums, and $10,000 for working capital. They can finance 70% of the total. How much cash do they need?
When establishing professional relationships with architects and engineers, what is the most important factor for a general contractor to consider?
A partnership agreement for a construction company should address all of the following EXCEPT:
A contractor purchases a truck for $60,000. After 5 years, it has accumulated depreciation of $35,000. What is the truck's book value?
A contractor's business plan projects first-year revenue of $500,000 with a 15% net profit margin. If actual revenue is $450,000 with the same profit margin, what is the variance in net profit?
Using the Modified Accelerated Cost Recovery System (MACRS), construction equipment is typically depreciated over how many years?
A contractor is comparing financing options for equipment purchase. Option A: $80,000 cash purchase. Option B: $20,000 down, $65,000 financed at 6% for 4 years. What is the total cost of Option B?
A contractor purchases equipment using a capital lease with a present value of $120,000. How should this be recorded on the balance sheet?
People Also Study
Related Study Resources
Previous Question
A construction company consistently pays suppliers within 10 days to earn a 2% early payment discount. If the normal payment terms are net 30, what is the annualized cost savings rate of this strategy?
Next Question
A contractor receives an invoice dated March 15th with terms of '2/10 net 30'. If the invoice amount is $8,500, what is the payment amount if paid on March 24th?