Nevada Business And Law Exam Questions And Correct Answers (Verified Answers) Plus Rationales 2026 Q&A |

Nevada Business And Law Exam Practice v v v v v v




Questions And Correct Answers (Verified v v v v v




Answers) Plus Rationales 2026 Q&A | Inst v v v v v v




ant Download Pdf
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1. What is the minimum number of years a contractor's records must be k
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ept in Nevada? v v




 4 years v




 2 years v




 6 years v




 10 years v



Contractors are required to retain business records for at least 4 years
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per Nevada law. v v




2. Which of the following business structures provides the least personal li
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ability protection? v




 Sole proprietorship v




 Corporation

 LLC

, Limited partnership v



A sole proprietorship does not separate business and personal liability
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, exposing personal assets.
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3. A general contractor must provide a disclosure statement to the o
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wner for contracts exceeding:
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 $5,000

 $10,000

 $25,000

 $50,000
Nevada law mandates a disclosure statement for contracts exceedi
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ng $25,000 to protect homeowners.
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4. How often must Nevada contractors renew their license?
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 Every year v




 Every 2 years v v




 Every 3 years v v




 Every 5 years v v



Nevada contractors are required to renew their licenses biennially.
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5. Which Nevada agency regulates and licenses contractors?
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 Department of Labor v v




 Department of Business and Industry v v v v




 Nevada State Contractors Board v v v

, Secretary of State v v



The Nevada State Contractors Board oversees licensing and regulation
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of contractors.
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6. If a contractor is convicted of a felony, they must notify the board w
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ithin:

 30 days v




 10 days v




 15 days v




 90 days v



Contractors must report a felony conviction to the board within 90 day
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s.

7. What is the purpose of a surety bond for a Nevada contractor?
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 To protect consumers from financial harm due to a contractor’s f
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ailure to meet obligations
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 To pay employees
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 To cover insurance
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 To secure loans
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A surety bond provides financial protection for clients and ensures con
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tractor compliance. v




8. The primary purpose of OSHA is to:
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 Protect consumer rights v v




 Ensure safe and healthful working conditions
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 Manage workers' compensation v v

,  Oversee tax filings v v



OSHA promotes workplace safety standards and enforcement.
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9. What is the minimum workers’ compensation insurance requirement i
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n Nevada?
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 For companies with 10+ employees
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 For companies with 5+ employees
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 For any employee, even one
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 Only if employees work more than 40 hours/week
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Nevada law requires workers' compensation for any business with at le
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ast one employee.
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10. When must a preliminary notice be served to secure lien rights?
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 After project completion
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 Within 31 days of first furnishing labor or materials
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 Before signing contract v v




 Within 10 days of receiving payment
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A timely preliminary notice preserves lien rights in Nevada.
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11. Who is responsible for reporting use tax in Nevada?
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 Clients

 Material suppliers v




 Contractors

 Subcontractors
Contractors are responsible for use tax when purchasing materials o
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ut-of-state without paying Nevada sales tax. v v v v v