Page 1 of 36
Louisiana Business and Law Exam ACTUAL Exam ALL
QUESTIONS AND CORRECT ANSWERS LATEST UPDATE
THIS YEAR
Louisiana Business and Law - ANSWER-Exam Coverage - Louisiana Business and Law
The Louisiana Business and Law Exam focuses on the legal and business knowledge required for
contractors and professionals working in the state of Louisiana. The exam covers topics such as
business organization and licensing requirements, contract management, bidding and
estimating, financial management, tax responsibilities, labor laws, and workplace safety
regulations. It also tests understanding of state construction laws and regulations enforced by
the Louisiana State Licensing Board for Contractors, including insurance requirements, lien
laws, and dispute resolution procedures to ensure lawful and ethical business practices.
QUESTION: A contractor is a person that works on a project valued at ______ or more for
commercial purposes other than residential duplexes, tri-plexes or four-plexes. - ANSWER-
$50,000
QUESTION: A ___________ is the person who contracts directly with the owner.
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The purpose of the contractor licensing laws is to - ANSWER-General contractor
Protect the public from fraudulent contractors
Protect against inexperienced contractors
Protect the health, safety and general welfare of the public
QUESTION: Any construction project other than residential homes, a single residential duplex,
tri-plex, or four-plex. - ANSWER-Commercial project
QUESTION: A contractor that works on a preexisting owner occupied building is considered a
_________ . - ANSWER-Home improvement contractor
QUESTION: A residential contractor is one who constructs a fixed structure when the cost
exceeds _________. - ANSWER-$75,000
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QUESTION: The state licensing board is comprised of ____ members. - ANSWER-15
QUESTION: The board has the power to do any of the following EXCEPT: - ANSWER-Sue
unlicensed contractors
QUESTION: Licenses and renewals expire on _______. - ANSWER-The anniversary date the
license was issued
QUESTION: An applicant must furnish the board with proof of financial responsibility including
proof of net worth of at least ______ . - ANSWER-$10,000
QUESTION: Is an applicant permitted to furnish a bond in lieu of proof of net worth? - ANSWER-
yes
QUESTION: When a qualifying party of a construction company leaves employment, the
company has how many days to inform the board? - ANSWER-30 days
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QUESTION: A qualifying party can be which of the following: - ANSWER-A co-partner
A stockholder
An employee who has been with the company at least 120 days
All of the above
QUESTION: An owner of a property who is improving their home for their own use does not
have to have a license to do construction work. - ANSWER-True
QUESTION: If you fail to comply with the rules of the board, you are subject to revocation or
suspension of your license. - ANSWER-True
QUESTION: If you have been found guilty of violating the rules of the board more than twice in
one year, you will not be permitted to bid on a public project for up to ____ years - ANSWER-3
QUESTION: If a license has been denied by the board, the applicant has ____ to appeal. -
ANSWER-6 months
4
Louisiana Business and Law Exam ACTUAL Exam ALL
QUESTIONS AND CORRECT ANSWERS LATEST UPDATE
THIS YEAR
Louisiana Business and Law - ANSWER-Exam Coverage - Louisiana Business and Law
The Louisiana Business and Law Exam focuses on the legal and business knowledge required for
contractors and professionals working in the state of Louisiana. The exam covers topics such as
business organization and licensing requirements, contract management, bidding and
estimating, financial management, tax responsibilities, labor laws, and workplace safety
regulations. It also tests understanding of state construction laws and regulations enforced by
the Louisiana State Licensing Board for Contractors, including insurance requirements, lien
laws, and dispute resolution procedures to ensure lawful and ethical business practices.
QUESTION: A contractor is a person that works on a project valued at ______ or more for
commercial purposes other than residential duplexes, tri-plexes or four-plexes. - ANSWER-
$50,000
QUESTION: A ___________ is the person who contracts directly with the owner.
1
, Page 2 of 36
The purpose of the contractor licensing laws is to - ANSWER-General contractor
Protect the public from fraudulent contractors
Protect against inexperienced contractors
Protect the health, safety and general welfare of the public
QUESTION: Any construction project other than residential homes, a single residential duplex,
tri-plex, or four-plex. - ANSWER-Commercial project
QUESTION: A contractor that works on a preexisting owner occupied building is considered a
_________ . - ANSWER-Home improvement contractor
QUESTION: A residential contractor is one who constructs a fixed structure when the cost
exceeds _________. - ANSWER-$75,000
2
, Page 3 of 36
QUESTION: The state licensing board is comprised of ____ members. - ANSWER-15
QUESTION: The board has the power to do any of the following EXCEPT: - ANSWER-Sue
unlicensed contractors
QUESTION: Licenses and renewals expire on _______. - ANSWER-The anniversary date the
license was issued
QUESTION: An applicant must furnish the board with proof of financial responsibility including
proof of net worth of at least ______ . - ANSWER-$10,000
QUESTION: Is an applicant permitted to furnish a bond in lieu of proof of net worth? - ANSWER-
yes
QUESTION: When a qualifying party of a construction company leaves employment, the
company has how many days to inform the board? - ANSWER-30 days
3
, Page 4 of 36
QUESTION: A qualifying party can be which of the following: - ANSWER-A co-partner
A stockholder
An employee who has been with the company at least 120 days
All of the above
QUESTION: An owner of a property who is improving their home for their own use does not
have to have a license to do construction work. - ANSWER-True
QUESTION: If you fail to comply with the rules of the board, you are subject to revocation or
suspension of your license. - ANSWER-True
QUESTION: If you have been found guilty of violating the rules of the board more than twice in
one year, you will not be permitted to bid on a public project for up to ____ years - ANSWER-3
QUESTION: If a license has been denied by the board, the applicant has ____ to appeal. -
ANSWER-6 months
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