CSLB Business Exam Questions With Correct Answers.
To declare themselves a corporation, LLC or Limited Partnership in California,
the principals must file formation documents with what agency?
A. The division of corporations
B. Secretary of State
C. City Hall
D. Contractors State License Board - accurate answers-B. Secretary of State
How can three or four companies get one license to work together? - accurate
answers-Joint venture
If a project takes a few months to complete, what is the BEST way to assess
the progress of the project?
A. Ask the workers on the job
B. Contact the foreman and ask for a written completion list
C. Do a job walk through and compare the progress with the schedule
D. Hire a third party to determine the progress - accurate answers-C. Do a job
walk through and compare the progress with the schedule
What is the main advantage of an S-Corporation?
A. The IRS prefers companies to form an S-Corporation
B. The Corporation keeps more of the profit
C. The Corporation does not have to report to the IRS or Secretary of State
D. The Corporation avoids double taxation - accurate answers-D. The
Corporation avoids double taxation
What is included in a service plan?
A. Accounts payable
B. Employee's names
C. Workers' compensation insurance provider
D. Who the market is and a marketing strategy - accurate answers-D. Who the
market is and a marketing strategy
What does a good project scheduling system provide?
A. Decreased insurance costs
B. Effective work flow distribution
C. The need for an IIPP
,D. A decreased need for printing documents - accurate answers-B. Effective
work flow distribution
The primary topics that should be included in a Business Plan are:
a. How the business will handle day-to-day operations and finances.
b. A description of the goals of the business, markets and marketing, finances,
and management.
c. Financial statements of the owners and a list of priorities.
d. The date the company first began doing business and the contractors
license number. - accurate answers-b. A description of the goals of the
business, markets and marketing, finances, and management.
What is the recommended practice after a contractor receives an approved set
of plans? - accurate answers-Double check the plans for any errors or
discrepancies
Which of the following would benefit office employees the LEAST?
a. A desk
b. An office
c. A GPS tracker
d. A personal computer - accurate answers-c. A GPS tracker
What is the main disadvantage of a C-Corporation?
a. Double taxation
b. Increased chances of a lawsuit
c. Must report to the shareholders
d. Answerable to the board of directors - accurate answers-a. Double taxation
What is the most common cause of small business failures?
a. Underbidding jobs
b. Low profit margin
c. Poor record keeping
d. Insufficient cash flow - accurate answers-d. Insufficient cash flow
When should the project be scheduled?
a. After a bid is accepted
b. After obtaining building permits
c. After the inspector approves the job
,d. After meeting with company employees - accurate answers-b. After
obtaining building permits
When the ownership of a company has changed, the collective bargaining
agreement:
a. is effective for 1 year
b. is effective for 2 years
c. is effective for 10 years
d. will be binding until it is expired - accurate answers-d. will be binding until
it is expired
Who prepares and distributes the punch list?
a. Owner
b. Inspector
c. Punch list supervisor
d. Project manager - accurate answers-d. Project manager
What should a contractor do to keep a company running smoothly, if the
contractor is performing all the managerial, physical, and strategic aspects of
the business?
a. Schedule all office work for weekends
b. Take more vacations during the year to relieve stress
c. Send an employee to a prestigious university to learn managerial skills
d. Hire a person or company to help with the payroll, administrative and
accounting duties to relieve the workload - accurate answers-d. Hire a person
or company to help with the payroll, administrative and accounting duties to
relieve the workload
When purchasing a union company with a successor clause, how long must
the existing collective bargaining agreement be kept after the purchase?
a. One year or until it expires, whichever occurs first
b. Three years or until it expires, whichever occurs first
c. Five years or until it expires, whichever occurs first
d. The collective bargaining agreement is terminated at the time of sale -
accurate answers-b. Three years or until it expires, whichever occurs first
Which of the following should a contractor do if they fall behind on a project's
time schedule?
a. Extend the deadlines
, b. Ask for more money
c. Extend deadlines if the owner accepts these terms
d. Hire more laborers - accurate answers-c. Extend deadlines if the owner
accepts these terms
If a company takes on multiple projects, and each project contains multiple
phases, what is the most effective way to complete these projects?
a. Hire a superintendent
b. Schedule the easiest project first
c. Schedule the most difficult project first
d. Plan ahead and create a construction schedule - accurate answers-d. Plan
ahead and create a construction schedule
What is Float time?
a. The amount of leeway allowed when starting or completing an activity
without delaying the project completion date.
b. The amount of time a #2 spruce stud will stay afloat.
c. The time between material invoicing and when payment is due.
d. The time it takes for employees to get to and from their work - accurate
answers-a. The amount of leeway allowed when starting or completing an
activity without delaying the project completion date.
Which of the following is a characteristic of a sole ownership business?
a. It can receive funding from federal budgets
b. It is the simplest form of business organization
c. It requires a board of directors to oversee the owner's actions
d. It can sell shares to investors - accurate answers-b. It is the simplest form of
business organization
What are the three primary schedule types?
a. Hand drawn, charting, and computerized
b. Daily, weekly, and monthly
c. List schedule, time scale (bar or Gantt chart), and Critical Path Method
(CPM)
d. Pythagorean, algebraic and geometric - accurate answers-c. List schedule,
time scale (bar or Gantt chart), and Critical Path Method (CPM)
Which of these scheduling techniques is relatively simple, and graphically
shows the starting and finishing time for individual tasks that make up a job?
To declare themselves a corporation, LLC or Limited Partnership in California,
the principals must file formation documents with what agency?
A. The division of corporations
B. Secretary of State
C. City Hall
D. Contractors State License Board - accurate answers-B. Secretary of State
How can three or four companies get one license to work together? - accurate
answers-Joint venture
If a project takes a few months to complete, what is the BEST way to assess
the progress of the project?
A. Ask the workers on the job
B. Contact the foreman and ask for a written completion list
C. Do a job walk through and compare the progress with the schedule
D. Hire a third party to determine the progress - accurate answers-C. Do a job
walk through and compare the progress with the schedule
What is the main advantage of an S-Corporation?
A. The IRS prefers companies to form an S-Corporation
B. The Corporation keeps more of the profit
C. The Corporation does not have to report to the IRS or Secretary of State
D. The Corporation avoids double taxation - accurate answers-D. The
Corporation avoids double taxation
What is included in a service plan?
A. Accounts payable
B. Employee's names
C. Workers' compensation insurance provider
D. Who the market is and a marketing strategy - accurate answers-D. Who the
market is and a marketing strategy
What does a good project scheduling system provide?
A. Decreased insurance costs
B. Effective work flow distribution
C. The need for an IIPP
,D. A decreased need for printing documents - accurate answers-B. Effective
work flow distribution
The primary topics that should be included in a Business Plan are:
a. How the business will handle day-to-day operations and finances.
b. A description of the goals of the business, markets and marketing, finances,
and management.
c. Financial statements of the owners and a list of priorities.
d. The date the company first began doing business and the contractors
license number. - accurate answers-b. A description of the goals of the
business, markets and marketing, finances, and management.
What is the recommended practice after a contractor receives an approved set
of plans? - accurate answers-Double check the plans for any errors or
discrepancies
Which of the following would benefit office employees the LEAST?
a. A desk
b. An office
c. A GPS tracker
d. A personal computer - accurate answers-c. A GPS tracker
What is the main disadvantage of a C-Corporation?
a. Double taxation
b. Increased chances of a lawsuit
c. Must report to the shareholders
d. Answerable to the board of directors - accurate answers-a. Double taxation
What is the most common cause of small business failures?
a. Underbidding jobs
b. Low profit margin
c. Poor record keeping
d. Insufficient cash flow - accurate answers-d. Insufficient cash flow
When should the project be scheduled?
a. After a bid is accepted
b. After obtaining building permits
c. After the inspector approves the job
,d. After meeting with company employees - accurate answers-b. After
obtaining building permits
When the ownership of a company has changed, the collective bargaining
agreement:
a. is effective for 1 year
b. is effective for 2 years
c. is effective for 10 years
d. will be binding until it is expired - accurate answers-d. will be binding until
it is expired
Who prepares and distributes the punch list?
a. Owner
b. Inspector
c. Punch list supervisor
d. Project manager - accurate answers-d. Project manager
What should a contractor do to keep a company running smoothly, if the
contractor is performing all the managerial, physical, and strategic aspects of
the business?
a. Schedule all office work for weekends
b. Take more vacations during the year to relieve stress
c. Send an employee to a prestigious university to learn managerial skills
d. Hire a person or company to help with the payroll, administrative and
accounting duties to relieve the workload - accurate answers-d. Hire a person
or company to help with the payroll, administrative and accounting duties to
relieve the workload
When purchasing a union company with a successor clause, how long must
the existing collective bargaining agreement be kept after the purchase?
a. One year or until it expires, whichever occurs first
b. Three years or until it expires, whichever occurs first
c. Five years or until it expires, whichever occurs first
d. The collective bargaining agreement is terminated at the time of sale -
accurate answers-b. Three years or until it expires, whichever occurs first
Which of the following should a contractor do if they fall behind on a project's
time schedule?
a. Extend the deadlines
, b. Ask for more money
c. Extend deadlines if the owner accepts these terms
d. Hire more laborers - accurate answers-c. Extend deadlines if the owner
accepts these terms
If a company takes on multiple projects, and each project contains multiple
phases, what is the most effective way to complete these projects?
a. Hire a superintendent
b. Schedule the easiest project first
c. Schedule the most difficult project first
d. Plan ahead and create a construction schedule - accurate answers-d. Plan
ahead and create a construction schedule
What is Float time?
a. The amount of leeway allowed when starting or completing an activity
without delaying the project completion date.
b. The amount of time a #2 spruce stud will stay afloat.
c. The time between material invoicing and when payment is due.
d. The time it takes for employees to get to and from their work - accurate
answers-a. The amount of leeway allowed when starting or completing an
activity without delaying the project completion date.
Which of the following is a characteristic of a sole ownership business?
a. It can receive funding from federal budgets
b. It is the simplest form of business organization
c. It requires a board of directors to oversee the owner's actions
d. It can sell shares to investors - accurate answers-b. It is the simplest form of
business organization
What are the three primary schedule types?
a. Hand drawn, charting, and computerized
b. Daily, weekly, and monthly
c. List schedule, time scale (bar or Gantt chart), and Critical Path Method
(CPM)
d. Pythagorean, algebraic and geometric - accurate answers-c. List schedule,
time scale (bar or Gantt chart), and Critical Path Method (CPM)
Which of these scheduling techniques is relatively simple, and graphically
shows the starting and finishing time for individual tasks that make up a job?
