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CSLB BUSINESS AND LAW (ACTUAL 2025/2026)
QUESTIONS AND VERIFIED CORRECT ANSWERS
GRADED ALATEST VERSION CSLB BUSINESS AND
LAW (ACTUAL 2025/2026) QUESTIONS AND VERIFIED
CORRECT ANSWERS GRADED A LATEST VERSION
2 types of qualifying individuals for each type of license - ...(answer)..Individual -
Responsible Managing Employee (RME) or Owner
Partnership - Qualifying Partner or RME
Corporation - Responsible managing officer (RMO) or RME
LLC - RME, RMO, Responsible Managing member/manager
What must be filed w/CSLB if RME/RMO leaves? Within how long? If not, what
happens? - ...(answer).."Notice of disassociation" and "application for replacing
qualifying individual".
Within 20 days
Or license automatically suspended
Responsible Managing Employee (RME) - ...(answer)..Full time employee works at
least 32 hours or 80% of operating time of biz, whichever is less.
May be used to qualify for individual, partnership, or corp license.
Never more than 3 licensees at one time.
Can only act as qualifier for 1 license at a time unless either: 1) other licensee is
subsidiary 2) he/she owns at least 20% of licensee 3) majority of officers/partners
of other one also are those of 1st
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Responsible Managing Officer (RMO) - ...(answer)..Officer of Corp
Journeyman - ...(answer)..A person who has completed an apprecnticeship
program or is an experienced worker, not a trainee, and is fully qualified to
perform the trade without supervision.
Foreman/Supervisor - ...(answer)..A person who has the knowledge/skill of a
journeyman and directly supervises physical construction
What are penalties for contracting w/out a license - ...(answer)..- Misdemeanor
offense
- 1st offense may receive citation from registrar, potential sentence of up to 6
months in jail and/or $500 fine, which is accompanied by civil penalty of no less
than $200 and no more than $15,000. May lessen or waive if contractor obtains
license within prescribed period of time.
- Felony charges for contracting w/out a license in emergency projects.
- 2nd offense found guilty of criminal offense which is punishable by civil penalty
of 20% contract price or $4,500, whichever is greater, and county jail min 90 days.
Penalty for advertising for work outside of your license - ...(answer)..fine of $700-
$1000
Penalty for hiring unlicensed sub or allowing use of license - ...(answer)..Citation
from registrar and civil penalty up to $15,000
CSLB BUSINESS AND LAW (ACTUAL 2025/2026)
QUESTIONS AND VERIFIED CORRECT ANSWERS
GRADED ALATEST VERSION CSLB BUSINESS AND
LAW (ACTUAL 2025/2026) QUESTIONS AND VERIFIED
CORRECT ANSWERS GRADED A LATEST VERSION
2 types of qualifying individuals for each type of license - ...(answer)..Individual -
Responsible Managing Employee (RME) or Owner
Partnership - Qualifying Partner or RME
Corporation - Responsible managing officer (RMO) or RME
LLC - RME, RMO, Responsible Managing member/manager
What must be filed w/CSLB if RME/RMO leaves? Within how long? If not, what
happens? - ...(answer).."Notice of disassociation" and "application for replacing
qualifying individual".
Within 20 days
Or license automatically suspended
Responsible Managing Employee (RME) - ...(answer)..Full time employee works at
least 32 hours or 80% of operating time of biz, whichever is less.
May be used to qualify for individual, partnership, or corp license.
Never more than 3 licensees at one time.
Can only act as qualifier for 1 license at a time unless either: 1) other licensee is
subsidiary 2) he/she owns at least 20% of licensee 3) majority of officers/partners
of other one also are those of 1st
, 2|Page
Responsible Managing Officer (RMO) - ...(answer)..Officer of Corp
Journeyman - ...(answer)..A person who has completed an apprecnticeship
program or is an experienced worker, not a trainee, and is fully qualified to
perform the trade without supervision.
Foreman/Supervisor - ...(answer)..A person who has the knowledge/skill of a
journeyman and directly supervises physical construction
What are penalties for contracting w/out a license - ...(answer)..- Misdemeanor
offense
- 1st offense may receive citation from registrar, potential sentence of up to 6
months in jail and/or $500 fine, which is accompanied by civil penalty of no less
than $200 and no more than $15,000. May lessen or waive if contractor obtains
license within prescribed period of time.
- Felony charges for contracting w/out a license in emergency projects.
- 2nd offense found guilty of criminal offense which is punishable by civil penalty
of 20% contract price or $4,500, whichever is greater, and county jail min 90 days.
Penalty for advertising for work outside of your license - ...(answer)..fine of $700-
$1000
Penalty for hiring unlicensed sub or allowing use of license - ...(answer)..Citation
from registrar and civil penalty up to $15,000
