UTAH CONTRACTOR BUSINESS & LAW
PRACTICE TEST QUESTIONS WITH
ANSWERS
An employer identification number (EIN) is required for all
entity types EXCEPT - CORRECT ANSWERS ✔✔Sole
Proprietorship
The profits from which type of business are NOT "pass
through" to the owners and taxed as ordinary income? -
CORRECT ANSWERS ✔✔C Corporation
Corporate minutes must be maintained annually for
which of the following entity types? - CORRECT ANSWERS
✔✔S Corporation
Which of following is true of a limited partner? - CORRECT
ANSWERS ✔✔A limited partner's financial responsibility is
limited to business liabilities
Which of the following entity types is not subject to self-
employment tax? - CORRECT ANSWERS ✔✔S Corporation
, What is the name of the surety law adopted by most
states and local governments? - CORRECT ANSWERS
✔✔The Little Miller Act
If a general contractor hires a subcontractor who has no
workers compensation policy for part of a project, and an
employee of the subcontractor is injured, who is
responsible for the injured employee? - CORRECT
ANSWERS ✔✔The General Contractor
If you're remodeling a house that was built before 1978,
you must - CORRECT ANSWERS ✔✔Provide a lead
information sheet to the inhabitant
What is the minimum required level of general liability
insurance coverage for a Utah contractor? - CORRECT
ANSWERS ✔✔$100,000 per incident / $300,000 total
If a contractor finds asbestos on a remodeling project,
they should - CORRECT ANSWERS ✔✔Have a certified
asbestos contractor remove the asbestos
If a person fails to file a timely preliminary notice, they
may not claim a construction lien for construction work
the person provides to the project before how many days
PRACTICE TEST QUESTIONS WITH
ANSWERS
An employer identification number (EIN) is required for all
entity types EXCEPT - CORRECT ANSWERS ✔✔Sole
Proprietorship
The profits from which type of business are NOT "pass
through" to the owners and taxed as ordinary income? -
CORRECT ANSWERS ✔✔C Corporation
Corporate minutes must be maintained annually for
which of the following entity types? - CORRECT ANSWERS
✔✔S Corporation
Which of following is true of a limited partner? - CORRECT
ANSWERS ✔✔A limited partner's financial responsibility is
limited to business liabilities
Which of the following entity types is not subject to self-
employment tax? - CORRECT ANSWERS ✔✔S Corporation
, What is the name of the surety law adopted by most
states and local governments? - CORRECT ANSWERS
✔✔The Little Miller Act
If a general contractor hires a subcontractor who has no
workers compensation policy for part of a project, and an
employee of the subcontractor is injured, who is
responsible for the injured employee? - CORRECT
ANSWERS ✔✔The General Contractor
If you're remodeling a house that was built before 1978,
you must - CORRECT ANSWERS ✔✔Provide a lead
information sheet to the inhabitant
What is the minimum required level of general liability
insurance coverage for a Utah contractor? - CORRECT
ANSWERS ✔✔$100,000 per incident / $300,000 total
If a contractor finds asbestos on a remodeling project,
they should - CORRECT ANSWERS ✔✔Have a certified
asbestos contractor remove the asbestos
If a person fails to file a timely preliminary notice, they
may not claim a construction lien for construction work
the person provides to the project before how many days
