CALIFORNIA ALARM COMPANY QUALIFIED
MANAGER (ACQ) EXAM BANK 2026 Expert
Verified for Guaranteed Pass | 300 Questions with
Detailed Rationales | Latest Update
PART 1: LICENSING AUTHORITY, DEFINITIONS, AND REGULATORY FRAMEWORK
1. What minimum age is required to apply for an Alarm Company Qualified Manager
license in California?
A) 18
B) 21
C) 25
D) 30
Correct Answer: A (18 years old)
Rationale: Section 7599(b) of the Business and Professions Code requires that a Qualified
Manager be at least 18 years of age. The same age requirement applies to Alarm Agents.
2. Which California government agency is directly responsible for issuing Alarm Company
Operator licenses and administering the Qualified Manager examination?
A) Department of Consumer Affairs (DCA)
B) Bureau of Security and Investigative Services (BSIS)
C) California Department of Insurance (CDI)
D) Occupational Safety and Health Administration (OSHA)
Correct Answer: B (BSIS)
Rationale: The Alarm Company Act is enforced by the BSIS, which is a division of the
Department of Consumer Affairs. BSIS administers exams for Qualified Managers and
regulates licensees.
3. Which California code contains the Alarm Company Act?
A) Penal Code
B) Civil Code
C) Public Utilities Code
D) Business and Professions Code (Division 3, Chapter 11.6)
Correct Answer: D (Business and Professions Code, Division 3, Chapter 11.6)
Rationale: The provisions of the Alarm Company Act are contained in the California
Business and Professions Code, starting from Section 7590.
,4. According to the Alarm Company Act, a “Qualified Manager” is defined as:
A) A person who installs alarm systems.
B) The Chief of the Bureau of Security and Investigative Services.
C) An individual in active control, management, and direction of the licensee’s business
holding a valid certificate.
D) The owner of the alarm company who has no daily operational duties.
Correct Answer: C
Rationale: Section 7590.1 defines the “Qualified manager” as an individual in active
control, management, and direction of the business and who holds a certificate. The
manager is responsible for the day-to-day activities of the alarm company.
5. What is the primary purpose of an Alarm Company Operator (ACO) license?
A) To sell security equipment at retail stores.
B) To allow a business to sell, install, monitor, maintain, service, or respond to alarm
systems at a customer’s property for compensation.
C) To carry a concealed firearm in public.
D) To act as a private investigator.
Correct Answer: B
Rationale: The ACO license is required for businesses that sell, install, monitor, maintain,
service, or respond to intrusion and fire alarm systems at a customer’s home or business.
6. Who must hold a current and valid Qualified Manager’s certificate?
A) Every employee of an alarm company.
B) Only the Chief of BSIS.
C) The individual who is in active control of an alarm company operator’s business.
D) Any person who sells an alarm system over the phone.
Correct Answer: C
Rationale: Section 7590.1 defines the Qualified Manager as the individual in active
control, management, and direction of the business.
7. The term “Alarm Agent” is defined in Section 7590.1. Which duties fall under this
definition?
A) Only installing security cameras.
B) Selling, altering, installing, maintaining, repairing, servicing, responding to, or
monitoring an alarm system.
C) Owning shares in an alarm company.
D) Performing accounting services for an alarm company.
Correct Answer: B
Rationale: Section 7590.1(o) defines an Alarm Agent as a person whose duties include
,selling on premises, altering, installing, maintaining, moving, repairing, replacing,
servicing, responding, or monitoring an alarm system.
8. A “residential sales agreement” is defined as:
A) A contract for the sale of the alarm company itself.
B) An agreement for the purchase of an alarm system to be used in the personal residence
of the owner or tenant.
C) A lease agreement for an apartment.
D) A security service contract for a commercial warehouse.
Correct Answer: B
Rationale: Section 7590.1 defines a “residential sales agreement” as an agreement for the
purchase of an alarm system to be utilized in the personal residence of the owner or
tenant.
9. Which entity is the “Bureau” as used in the Alarm Company Act?
A) The Department of Justice.
B) The Federal Trade Commission.
C) The Bureau of Security and Investigative Services (BSIS).
D) The California Business Bureau.
Correct Answer: C
Rationale: Section 7590.1(d) states: “Bureau” means the Bureau of Security and
Investigative Services.
10. An “Exposed Firearm Permit” under the Alarm Company Act is issued to whom?
A) Any customer of the alarm company.
B) The general public upon application.
C) A licensee, Qualified Manager, or Alarm Agent to carry an exposed firearm while on
duty.
D) Only to off-duty police officers.
Correct Answer: C
Rationale: Section 7590.1(q) defines “Firearms permit” as a permit issued to a licensee,
Qualified Manager, or Alarm Agent to carry an exposed firearm while on duty.
11. Which firearm is NOT to be carried while on duty without a proper “Firearms Permit”?
A) A dirk or dagger.
B) A pistol or revolver.
C) A baseball bat.
D) Any metal pipe or bar used as a club.
Correct Answer: B (pistol or revolver)
, Rationale: Section 7590.1 lists deadly weapons including pistols, revolvers, and any other
firearm. A Firearms Permit is required to carry an exposed firearm on duty.
12. A “deadly weapon” under the Alarm Company Act includes which of the following?
A) A screwdriver.
B) A knife with a blade longer than five (5) inches.
C) A flashlight.
D) A cell phone.
Correct Answer: B (a knife with a blade longer than 5 inches)
Rationale: Section 7590.1(p) lists as deadly weapons: any knife having a blade longer than
five inches.
13. For the purpose of the Alarm Company Act, an “employer” is defined as:
A) The person who signs the contract with the customer.
B) A person who employs an individual for wages, lists the individual on the payroll, and
withholds all legally required deductions.
C) The Qualified Manager.
D) The Chief of BSIS.
Correct Answer: B
Rationale: Section 7590.1(f) defines “Employer” as a person who employs an individual for
wages, lists them on payroll records, and withholds deductions.
14. An “employee” is defined as:
A) The owner of the alarm company.
B) Any independent contractor.
C) An individual who works for an employer, is listed on payroll records, and is under the
employer’s direction and control.
D) A temporary worker from a staffing agency.
Correct Answer: C
Rationale: Section 7590.1(g) defines “Employee” as an individual who works for an
employer, is listed on the employer’s payroll, and is under the employer’s direction and
control.
15. The “Chief” under the Alarm Company Act refers to:
A) The head of the local police department.
B) The Chief of the Bureau of Security and Investigative Services.
C) The fire chief.
D) The Chief Executive Officer of the alarm company.
Correct Answer: B
MANAGER (ACQ) EXAM BANK 2026 Expert
Verified for Guaranteed Pass | 300 Questions with
Detailed Rationales | Latest Update
PART 1: LICENSING AUTHORITY, DEFINITIONS, AND REGULATORY FRAMEWORK
1. What minimum age is required to apply for an Alarm Company Qualified Manager
license in California?
A) 18
B) 21
C) 25
D) 30
Correct Answer: A (18 years old)
Rationale: Section 7599(b) of the Business and Professions Code requires that a Qualified
Manager be at least 18 years of age. The same age requirement applies to Alarm Agents.
2. Which California government agency is directly responsible for issuing Alarm Company
Operator licenses and administering the Qualified Manager examination?
A) Department of Consumer Affairs (DCA)
B) Bureau of Security and Investigative Services (BSIS)
C) California Department of Insurance (CDI)
D) Occupational Safety and Health Administration (OSHA)
Correct Answer: B (BSIS)
Rationale: The Alarm Company Act is enforced by the BSIS, which is a division of the
Department of Consumer Affairs. BSIS administers exams for Qualified Managers and
regulates licensees.
3. Which California code contains the Alarm Company Act?
A) Penal Code
B) Civil Code
C) Public Utilities Code
D) Business and Professions Code (Division 3, Chapter 11.6)
Correct Answer: D (Business and Professions Code, Division 3, Chapter 11.6)
Rationale: The provisions of the Alarm Company Act are contained in the California
Business and Professions Code, starting from Section 7590.
,4. According to the Alarm Company Act, a “Qualified Manager” is defined as:
A) A person who installs alarm systems.
B) The Chief of the Bureau of Security and Investigative Services.
C) An individual in active control, management, and direction of the licensee’s business
holding a valid certificate.
D) The owner of the alarm company who has no daily operational duties.
Correct Answer: C
Rationale: Section 7590.1 defines the “Qualified manager” as an individual in active
control, management, and direction of the business and who holds a certificate. The
manager is responsible for the day-to-day activities of the alarm company.
5. What is the primary purpose of an Alarm Company Operator (ACO) license?
A) To sell security equipment at retail stores.
B) To allow a business to sell, install, monitor, maintain, service, or respond to alarm
systems at a customer’s property for compensation.
C) To carry a concealed firearm in public.
D) To act as a private investigator.
Correct Answer: B
Rationale: The ACO license is required for businesses that sell, install, monitor, maintain,
service, or respond to intrusion and fire alarm systems at a customer’s home or business.
6. Who must hold a current and valid Qualified Manager’s certificate?
A) Every employee of an alarm company.
B) Only the Chief of BSIS.
C) The individual who is in active control of an alarm company operator’s business.
D) Any person who sells an alarm system over the phone.
Correct Answer: C
Rationale: Section 7590.1 defines the Qualified Manager as the individual in active
control, management, and direction of the business.
7. The term “Alarm Agent” is defined in Section 7590.1. Which duties fall under this
definition?
A) Only installing security cameras.
B) Selling, altering, installing, maintaining, repairing, servicing, responding to, or
monitoring an alarm system.
C) Owning shares in an alarm company.
D) Performing accounting services for an alarm company.
Correct Answer: B
Rationale: Section 7590.1(o) defines an Alarm Agent as a person whose duties include
,selling on premises, altering, installing, maintaining, moving, repairing, replacing,
servicing, responding, or monitoring an alarm system.
8. A “residential sales agreement” is defined as:
A) A contract for the sale of the alarm company itself.
B) An agreement for the purchase of an alarm system to be used in the personal residence
of the owner or tenant.
C) A lease agreement for an apartment.
D) A security service contract for a commercial warehouse.
Correct Answer: B
Rationale: Section 7590.1 defines a “residential sales agreement” as an agreement for the
purchase of an alarm system to be utilized in the personal residence of the owner or
tenant.
9. Which entity is the “Bureau” as used in the Alarm Company Act?
A) The Department of Justice.
B) The Federal Trade Commission.
C) The Bureau of Security and Investigative Services (BSIS).
D) The California Business Bureau.
Correct Answer: C
Rationale: Section 7590.1(d) states: “Bureau” means the Bureau of Security and
Investigative Services.
10. An “Exposed Firearm Permit” under the Alarm Company Act is issued to whom?
A) Any customer of the alarm company.
B) The general public upon application.
C) A licensee, Qualified Manager, or Alarm Agent to carry an exposed firearm while on
duty.
D) Only to off-duty police officers.
Correct Answer: C
Rationale: Section 7590.1(q) defines “Firearms permit” as a permit issued to a licensee,
Qualified Manager, or Alarm Agent to carry an exposed firearm while on duty.
11. Which firearm is NOT to be carried while on duty without a proper “Firearms Permit”?
A) A dirk or dagger.
B) A pistol or revolver.
C) A baseball bat.
D) Any metal pipe or bar used as a club.
Correct Answer: B (pistol or revolver)
, Rationale: Section 7590.1 lists deadly weapons including pistols, revolvers, and any other
firearm. A Firearms Permit is required to carry an exposed firearm on duty.
12. A “deadly weapon” under the Alarm Company Act includes which of the following?
A) A screwdriver.
B) A knife with a blade longer than five (5) inches.
C) A flashlight.
D) A cell phone.
Correct Answer: B (a knife with a blade longer than 5 inches)
Rationale: Section 7590.1(p) lists as deadly weapons: any knife having a blade longer than
five inches.
13. For the purpose of the Alarm Company Act, an “employer” is defined as:
A) The person who signs the contract with the customer.
B) A person who employs an individual for wages, lists the individual on the payroll, and
withholds all legally required deductions.
C) The Qualified Manager.
D) The Chief of BSIS.
Correct Answer: B
Rationale: Section 7590.1(f) defines “Employer” as a person who employs an individual for
wages, lists them on payroll records, and withholds deductions.
14. An “employee” is defined as:
A) The owner of the alarm company.
B) Any independent contractor.
C) An individual who works for an employer, is listed on payroll records, and is under the
employer’s direction and control.
D) A temporary worker from a staffing agency.
Correct Answer: C
Rationale: Section 7590.1(g) defines “Employee” as an individual who works for an
employer, is listed on the employer’s payroll, and is under the employer’s direction and
control.
15. The “Chief” under the Alarm Company Act refers to:
A) The head of the local police department.
B) The Chief of the Bureau of Security and Investigative Services.
C) The fire chief.
D) The Chief Executive Officer of the alarm company.
Correct Answer: B
