CSLB Exam Law and Business 2025-2026 Questions with
100% Correct Answers
How much time doesRa contractor have to renew his/her license after the expiration date without retaki
ng the license exam? - CORRECT ANSWER - -The contractor isRnotRrequired to retake the exam if the
license is renewed within 5 years, from the expir ation date
If the contractor unlawfully removes asbestos he/she may be fined... - CORRECT ANSWER - -
minimum of $1,000 and or have his/her license revoked or suspended
when you collect sales tax from your customers goods, to which agency do you report and pay sales tax
collected? - CORRECT ANSWER --sales tax is a state tax and is payable to the state board of
equalization.
Who do you pay state income tax to - - CORRECT
ANSWER - -state income taxes are payable to the
franchise taxRboard
Who collects federal tax - CORRECT ANSWER --IRS only collects federal taxes
How long is the contractor liable for patent or visibleRdefects - - CORRECT
ANSWER - -patent is a visible defect for which the contractor is liable for up to 4
years
how long is the contractor liable for latent or structural defects - CORRECT ANSWER - -latent is an invisible
or structural defect for which the contractor isRliable for up to 10 years
account receivable contains? - CORRECT ANSWER - -retention, which is usually 10%, it is withheld by
the owner from the contract to ensure that the job is d one properly and subcontractors are paid. the
retention is recorded in accounts receivable
which is considered a fixed cost to a contractor
a. electricity cost
b.part time wages
100% Correct Answers
How much time doesRa contractor have to renew his/her license after the expiration date without retaki
ng the license exam? - CORRECT ANSWER - -The contractor isRnotRrequired to retake the exam if the
license is renewed within 5 years, from the expir ation date
If the contractor unlawfully removes asbestos he/she may be fined... - CORRECT ANSWER - -
minimum of $1,000 and or have his/her license revoked or suspended
when you collect sales tax from your customers goods, to which agency do you report and pay sales tax
collected? - CORRECT ANSWER --sales tax is a state tax and is payable to the state board of
equalization.
Who do you pay state income tax to - - CORRECT
ANSWER - -state income taxes are payable to the
franchise taxRboard
Who collects federal tax - CORRECT ANSWER --IRS only collects federal taxes
How long is the contractor liable for patent or visibleRdefects - - CORRECT
ANSWER - -patent is a visible defect for which the contractor is liable for up to 4
years
how long is the contractor liable for latent or structural defects - CORRECT ANSWER - -latent is an invisible
or structural defect for which the contractor isRliable for up to 10 years
account receivable contains? - CORRECT ANSWER - -retention, which is usually 10%, it is withheld by
the owner from the contract to ensure that the job is d one properly and subcontractors are paid. the
retention is recorded in accounts receivable
which is considered a fixed cost to a contractor
a. electricity cost
b.part time wages
