1
UTAH GENERAL CONTRACTOR BUSINESS
& LAW Exam Study Guide & Practice Test
Questions and Answers Latest Update 2026
Which business organization is regulated the least by the government? -
<CORRECT ANSWER>> Sole Proprietorship
In a general partnership, each partner is liable for the debt of the company up to the
percentage of the company they own. <Correct Answer>> false
What business organization provides the most financial protection for the owners? -
<CORRECT ANSWER>> Corporation
Sole Proprietorships can issue and sell stock in the company to raise capital. -
<CORRECT ANSWER>> false
Can a corporation actually be listed as the sole owner of a property? -
<CORRECT ANSWER>> yes
Limited Liability Companies have the ability to be passed down to family members when
an owner (member) dies. <Correct Answer>> false
,2
Sub Chapter "S" Corporations can retain their status no matter how many stockholders
they have. <Correct Answer>> false
Start-up and operating costs must be considered when creating a .-
<CORRECT ANSWER>> financial plan
A provides potential investors with a concrete description of your successes
and qualifications. <Correct Answer>> business plan
A combines the liability protection of a corporation with the favorable
tax treatment of a partnership or sole proprietorship. <Correct Answer>> LLC
have a partner who contributes funds and or property to the business,
but does not provide any services or have any say in the day to day business. -
<CORRECT ANSWER>> Limited Partnerships
It is a good idea to research business names through the website to
avoid creating a business name that is too similar to another registered name. -
<CORRECT ANSWER>> Secretary of State
One pitfall of a General Partnership is that each partner is personally responsible for the
debts of the business, and this debt responsibility is not limited to the percentage of
ownership. <Correct Answer>> True
,3
If a corporation is eligible to be taxed as a partnership and chooses to take this option, it
is referred to as . -CORRECTANSWER S Corporation
This serves as a reminder to owners, employees, subcontractors, suppliers and
customers of what the company wants to do and become. <Correct Answer>>
Mission Statement
Identifying probable customers and attracting them to your product or service is known
as . <Correct Answer>> Marketing
The Construction Services Commission shall be comprised of members. -
<CORRECT ANSWER>> nine
Which of the following is NOT required from an applicant before being issued a license?
<Correct Answer>> proof of incorporation
Each contractor licensee under a license issued under this chapter shall complete
hours of approved continuing education. <Correct Answer>> 6
Contractor licenses are issued on a renewal cycle. <Correct Answer>> 2 year
, 4
If a license has been suspended, the applicant must resolve any and all outstanding
fines, citations and judgements. <Correct Answer>> True
A contractor license number must be attached to which of the following?
1 permit applications
2 bids (when a license is required)
3 contracts
4 all of the above <Correct Answer>> all of the above
Can an independent contractor be a qualifier for a business entity? -
<CORRECT ANSWER>> no
The division must be notified within days, in writing, that a qualifying officer
has ceased association with a company. <Correct Answer>> 10
If a qualifying person leaves a company, the license will remain active for .-
<CORRECT ANSWER>> 60 days
A home owner who builds three residential structures in a five year period is still exempt
from licensing requirements. <Correct Answer>> True
UTAH GENERAL CONTRACTOR BUSINESS
& LAW Exam Study Guide & Practice Test
Questions and Answers Latest Update 2026
Which business organization is regulated the least by the government? -
<CORRECT ANSWER>> Sole Proprietorship
In a general partnership, each partner is liable for the debt of the company up to the
percentage of the company they own. <Correct Answer>> false
What business organization provides the most financial protection for the owners? -
<CORRECT ANSWER>> Corporation
Sole Proprietorships can issue and sell stock in the company to raise capital. -
<CORRECT ANSWER>> false
Can a corporation actually be listed as the sole owner of a property? -
<CORRECT ANSWER>> yes
Limited Liability Companies have the ability to be passed down to family members when
an owner (member) dies. <Correct Answer>> false
,2
Sub Chapter "S" Corporations can retain their status no matter how many stockholders
they have. <Correct Answer>> false
Start-up and operating costs must be considered when creating a .-
<CORRECT ANSWER>> financial plan
A provides potential investors with a concrete description of your successes
and qualifications. <Correct Answer>> business plan
A combines the liability protection of a corporation with the favorable
tax treatment of a partnership or sole proprietorship. <Correct Answer>> LLC
have a partner who contributes funds and or property to the business,
but does not provide any services or have any say in the day to day business. -
<CORRECT ANSWER>> Limited Partnerships
It is a good idea to research business names through the website to
avoid creating a business name that is too similar to another registered name. -
<CORRECT ANSWER>> Secretary of State
One pitfall of a General Partnership is that each partner is personally responsible for the
debts of the business, and this debt responsibility is not limited to the percentage of
ownership. <Correct Answer>> True
,3
If a corporation is eligible to be taxed as a partnership and chooses to take this option, it
is referred to as . -CORRECTANSWER S Corporation
This serves as a reminder to owners, employees, subcontractors, suppliers and
customers of what the company wants to do and become. <Correct Answer>>
Mission Statement
Identifying probable customers and attracting them to your product or service is known
as . <Correct Answer>> Marketing
The Construction Services Commission shall be comprised of members. -
<CORRECT ANSWER>> nine
Which of the following is NOT required from an applicant before being issued a license?
<Correct Answer>> proof of incorporation
Each contractor licensee under a license issued under this chapter shall complete
hours of approved continuing education. <Correct Answer>> 6
Contractor licenses are issued on a renewal cycle. <Correct Answer>> 2 year
, 4
If a license has been suspended, the applicant must resolve any and all outstanding
fines, citations and judgements. <Correct Answer>> True
A contractor license number must be attached to which of the following?
1 permit applications
2 bids (when a license is required)
3 contracts
4 all of the above <Correct Answer>> all of the above
Can an independent contractor be a qualifier for a business entity? -
<CORRECT ANSWER>> no
The division must be notified within days, in writing, that a qualifying officer
has ceased association with a company. <Correct Answer>> 10
If a qualifying person leaves a company, the license will remain active for .-
<CORRECT ANSWER>> 60 days
A home owner who builds three residential structures in a five year period is still exempt
from licensing requirements. <Correct Answer>> True
