CSLB BUSINESS AND LAW (ACTUAL 2025/2026) QUESTIONS
AND VERIFIED CORRECT ANSWERS GRADED ALATEST
VERSION
The prime contractor must pay the subcontractor within how
many days after receiving a progress payment?
3 days
7 days
15 days
30 days - ---Answers----7 days
One of your customer's accounts has gone past 30 days. What
is the best method of handling it?
Send it to a collection agency.
Contact the customer and put them on a new payment
schedule.
Begin to charge interest on the customer's account.
,Stop work immediately. - ---Answers----Begin to charge
interest on the customer's account.
You have determined that the job you are working on involves
asbestos. What should you do?
File for an Asbestos Abatement certificate.
Stop work immediately.
Register with DOSH.
Remove any asbestos and keep working. - ---Answers----
Stop work immediately.
A home improvement salesperson's registration must be
renewed:
for every job.
once per year.
every two years.
every four years. - ---Answers----every two years.
,_________ are changes to contract document made during the
bidding process period.
Alternatives
Addenda
Allowances
All of the above. - ---Answers----Addenda
Good cash flow is achieved when:
current assets equal current liabilities.
total liabilities are less than total assets.
current liabilities are less than current assets.
total income equals total expenses. - ---Answers----current
liabilities are less than current assets.
When using the Contractor's State License Board's voluntary
or mandatory arbitration, who pays for the costs?
, homeowner
contractor
homeowner and contractor
Contractor's State License Board - ---Answers----
Contractor's State License Board
If a contractor does not carry workers' compensation
insurance, the DIR or CSLB may issue a ______________________.
Cease-and-desist-order
Stop Notice
Stop Order
Notice of Cessation - ---Answers----Stop Order
Which of the following may NOT file a stop payment notice on
public works?
The direct contractor.
AND VERIFIED CORRECT ANSWERS GRADED ALATEST
VERSION
The prime contractor must pay the subcontractor within how
many days after receiving a progress payment?
3 days
7 days
15 days
30 days - ---Answers----7 days
One of your customer's accounts has gone past 30 days. What
is the best method of handling it?
Send it to a collection agency.
Contact the customer and put them on a new payment
schedule.
Begin to charge interest on the customer's account.
,Stop work immediately. - ---Answers----Begin to charge
interest on the customer's account.
You have determined that the job you are working on involves
asbestos. What should you do?
File for an Asbestos Abatement certificate.
Stop work immediately.
Register with DOSH.
Remove any asbestos and keep working. - ---Answers----
Stop work immediately.
A home improvement salesperson's registration must be
renewed:
for every job.
once per year.
every two years.
every four years. - ---Answers----every two years.
,_________ are changes to contract document made during the
bidding process period.
Alternatives
Addenda
Allowances
All of the above. - ---Answers----Addenda
Good cash flow is achieved when:
current assets equal current liabilities.
total liabilities are less than total assets.
current liabilities are less than current assets.
total income equals total expenses. - ---Answers----current
liabilities are less than current assets.
When using the Contractor's State License Board's voluntary
or mandatory arbitration, who pays for the costs?
, homeowner
contractor
homeowner and contractor
Contractor's State License Board - ---Answers----
Contractor's State License Board
If a contractor does not carry workers' compensation
insurance, the DIR or CSLB may issue a ______________________.
Cease-and-desist-order
Stop Notice
Stop Order
Notice of Cessation - ---Answers----Stop Order
Which of the following may NOT file a stop payment notice on
public works?
The direct contractor.
