Page 1 of 104
Private Investigation Company Practice Exam
100 Questions with Correct Answers &
Explanations | Graded A+ Study Guide
Q1. A private investigator license is typically issued by which
level of government in the United States?
A) Federal government (FBI)
B) State government (state licensing board or department of
public safety)
C) Local police department
D) International association
Correct Answer: B
Rationale: Private investigator licensing is regulated at the state
level. Most states require passing an exam, meeting
experience/education requirements, and undergoing a
background check. Federal licensing does not exist for general
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private investigators, though specific federal credentials may
apply for certain work.
Q2. Which of the following is generally NOT a requirement to
obtain a private investigator license?
A) Minimum age (typically 18 or 21)
B) No felony convictions
C) Passing a state licensing exam
D) A law degree
Correct Answer: D
Rationale: A law degree is not required for private investigator
licensing. Requirements typically include minimum age, clean
criminal record, experience (often 1-3 years as an apprentice or
related law enforcement work), passing an exam, and continuing
education.
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Q3. The term "straw licensing" refers to:
A) Obtaining a license using a qualified individual who will not
actively supervise the business
B) Using an alias on a license
C) Licensing only during harvest season
D) A temporary license
Correct Answer: A
Rationale: Straw licensing is an unethical (and often illegal)
practice where an individual with a license allows an unlicensed
person to operate under their license without proper supervision
or control. This violates state licensing laws.
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Q4. A private investigator discovers that their client is using the
investigation to harass an ex-spouse. What is the PI's ethical
obligation?
A) Continue because the client pays
B) Terminate services and report the client if required by law
C) Increase fees to discourage the client
D) Secretly notify the target
Correct Answer: B
Rationale: PIs must comply with laws against harassment,
stalking, and illegal surveillance. If a client intends to use services
for unlawful purposes, the PI should terminate the relationship
and may have a legal obligation to report certain threats or
illegal activities.
Q5. Scenario: A PI is hired to investigate a worker's
compensation claim. The PI observes the claimant, who is on
Private Investigation Company Practice Exam
100 Questions with Correct Answers &
Explanations | Graded A+ Study Guide
Q1. A private investigator license is typically issued by which
level of government in the United States?
A) Federal government (FBI)
B) State government (state licensing board or department of
public safety)
C) Local police department
D) International association
Correct Answer: B
Rationale: Private investigator licensing is regulated at the state
level. Most states require passing an exam, meeting
experience/education requirements, and undergoing a
background check. Federal licensing does not exist for general
,Page 2 of 104
private investigators, though specific federal credentials may
apply for certain work.
Q2. Which of the following is generally NOT a requirement to
obtain a private investigator license?
A) Minimum age (typically 18 or 21)
B) No felony convictions
C) Passing a state licensing exam
D) A law degree
Correct Answer: D
Rationale: A law degree is not required for private investigator
licensing. Requirements typically include minimum age, clean
criminal record, experience (often 1-3 years as an apprentice or
related law enforcement work), passing an exam, and continuing
education.
,Page 3 of 104
Q3. The term "straw licensing" refers to:
A) Obtaining a license using a qualified individual who will not
actively supervise the business
B) Using an alias on a license
C) Licensing only during harvest season
D) A temporary license
Correct Answer: A
Rationale: Straw licensing is an unethical (and often illegal)
practice where an individual with a license allows an unlicensed
person to operate under their license without proper supervision
or control. This violates state licensing laws.
, Page 4 of 104
Q4. A private investigator discovers that their client is using the
investigation to harass an ex-spouse. What is the PI's ethical
obligation?
A) Continue because the client pays
B) Terminate services and report the client if required by law
C) Increase fees to discourage the client
D) Secretly notify the target
Correct Answer: B
Rationale: PIs must comply with laws against harassment,
stalking, and illegal surveillance. If a client intends to use services
for unlawful purposes, the PI should terminate the relationship
and may have a legal obligation to report certain threats or
illegal activities.
Q5. Scenario: A PI is hired to investigate a worker's
compensation claim. The PI observes the claimant, who is on
