LOUISIANA BUSINESS AND LAW EXAM
QUESTIONS AND CORRECT ANSWERS
(VERIFIED ANSWERS) PLUS RATIONALES
2026 Q&A | INSTANT DOWNLOAD PDF
The purpose of the contractor licensing laws is to - CORRECT ANSWER -
Protect the public from fraudulent contractors
Protect against inexperienced contractors
Protect the health, safety and general welfare of the public
Any construction project other than residential homes, a single residential
duplex, tri-plex, or four-plex. - CORRECT ANSWER -Commercial project
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. - CORRECT ANSWER -$50,000
A ___________ is the person who contracts directly with the owner. -
CORRECT ANSWER -General contractor
,A contractor that works on a preexisting owner occupied building is
considered a _________ . - CORRECT ANSWER -Home improvement
contractor
A residential contractor is one who constructs a fixed structure when the
cost exceeds _________. - CORRECT ANSWER -$75,000
The state licensing board is comprised of ____ members. - CORRECT
ANSWER -15
The board has the power to do any of the following EXCEPT: - CORRECT
ANSWER -Sue unlicensed contractors
Licenses and renewals expire on _______. - CORRECT ANSWER -The
anniversary date the license was issued
An applicant must furnish the board with proof of financial responsibility
including proof of net worth of at least ______ . - CORRECT ANSWER -
$10,000
Is an applicant permitted to furnish a bond in lieu of proof of net worth? -
CORRECT ANSWER -yes
, When a qualifying party of a construction company leaves employment, the
company has how many days to inform the board? - CORRECT ANSWER -30
days
A qualifying party can be which of the following: - CORRECT ANSWER -A co-
partner
A stockholder
An employee who has been with the company at least 120 days
All of the above
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. - CORRECT ANSWER -
True
If you fail to comply with the rules of the board, you are subject to
revocation or suspension of your license. - CORRECT ANSWER -True
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 - CORRECT ANSWER -3
If a license has been denied by the board, the applicant has ____ to appeal. -
CORRECT ANSWER -6 months
QUESTIONS AND CORRECT ANSWERS
(VERIFIED ANSWERS) PLUS RATIONALES
2026 Q&A | INSTANT DOWNLOAD PDF
The purpose of the contractor licensing laws is to - CORRECT ANSWER -
Protect the public from fraudulent contractors
Protect against inexperienced contractors
Protect the health, safety and general welfare of the public
Any construction project other than residential homes, a single residential
duplex, tri-plex, or four-plex. - CORRECT ANSWER -Commercial project
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. - CORRECT ANSWER -$50,000
A ___________ is the person who contracts directly with the owner. -
CORRECT ANSWER -General contractor
,A contractor that works on a preexisting owner occupied building is
considered a _________ . - CORRECT ANSWER -Home improvement
contractor
A residential contractor is one who constructs a fixed structure when the
cost exceeds _________. - CORRECT ANSWER -$75,000
The state licensing board is comprised of ____ members. - CORRECT
ANSWER -15
The board has the power to do any of the following EXCEPT: - CORRECT
ANSWER -Sue unlicensed contractors
Licenses and renewals expire on _______. - CORRECT ANSWER -The
anniversary date the license was issued
An applicant must furnish the board with proof of financial responsibility
including proof of net worth of at least ______ . - CORRECT ANSWER -
$10,000
Is an applicant permitted to furnish a bond in lieu of proof of net worth? -
CORRECT ANSWER -yes
, When a qualifying party of a construction company leaves employment, the
company has how many days to inform the board? - CORRECT ANSWER -30
days
A qualifying party can be which of the following: - CORRECT ANSWER -A co-
partner
A stockholder
An employee who has been with the company at least 120 days
All of the above
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. - CORRECT ANSWER -
True
If you fail to comply with the rules of the board, you are subject to
revocation or suspension of your license. - CORRECT ANSWER -True
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 - CORRECT ANSWER -3
If a license has been denied by the board, the applicant has ____ to appeal. -
CORRECT ANSWER -6 months
