CSLB Business and Law Exam Questions With Accurate
Answers.
Who Needs a CA Contractors License? - accurate answers-Work that is over
$500 and becomes permanent part of the property
Who does NOT need a Contractors License? - accurate answers-- Security
Systems & Satellite Antenna Systems on Residential Structures or Property.
- Work that is less than $500
Contractor License Class A - accurate answers-General Engineering
Contractor: works on fixed works: irrigation, streets, roads, parks excavations
Contractor License Class B - accurate answers-General Building Contractor:
works on structures built for the shelter of persons or animals requiring more
than two unrelated trades of crafts. A general bustling contractor who
performs only one trade on a job (except for carpentry or framing) must have
the specialty classification for the trade
Contractor License Classification B-2 - accurate answers-Residential
Remodeling Contractor: whose principle contracting business is in connection
with any project to improvements to, on, or in an existing residential wood
frame structure, and the project requires the use of at least three unrelated
building trades
Contractor License Classification C - accurate answers-Specialty Contractors:
whose contraction work requires special skills and whose principal
contracting business involves the use of specialized building trades or crafts
Contractor License Classification C Classified - accurate answers-Specialty
Contractors Classified: Perform their trade using the art, experience, science,
and skills necessary to satisfactorily organize, administer, construct and
complete projects under their classification, in accordance with the standards
of their trade.
Individual License - accurate answers-(sole owner, sole proprietor) no
separation of finances, if the business goes bankrupt so does the individual
,Partnership - accurate answers-same as individual but there is multiple
individuals involved
Corporation - accurate answers-Full separation of finances, the individual is
not held responsible but is very complicated to set up etc.
Limited Liability Company - accurate answers-Individual has limited liability,
if the company goes bankrupt then the individual is liable for a limited
amount. It is in between the individual and corporation.
Joint Venture - accurate answers-Multiple companies come together and want
to form a larger group, this is common for very large construction projects.
Companies will get together to form the joint venture and will dissolve it after
the project is over.
License belong to
1. Individual:
2. Partnership:
3. Corporation:
4. Limited Liability Company
5. Joint Venture: - accurate answers-1. An Owner
2. All Partners
3. The Officers
4. All Managers
5. Combination of the Licensees in good standing
Register Active License every _____ years, if your license is expired a
delinquent fee of ____ % the total will be applied - accurate answers-2 years,
50%
Qualifying Individual - accurate answers-Qualifier is required for each license
issued. A qualifier is one who meets the experience and examination
requirements.
One may act as the qualifier on more than one-active license if the qualifier
owns at least ____% or more of each business entity or company. A person may
serve as the qualifying individual for no more than ____ active licenses (firms),
in any one-year period - accurate answers-20%, 3
, Who may be a Qualifying Individual?
1. Individual License:
2. Limited Liability Company:
3. Partnership License:
4. Corporation License: - accurate answers-1. Owner or RME
2. RMO, RME, or as a Responsible Managing Manager/Member
3. One of the Partners or RME
4. One of Corporate Officer as a RMO or a RME
Responsible Management Employee (RME) - accurate answers-- Qualified to
act as a qualifier for a business entity
- Can only act as a qualifying individual for one active license only
- Must make inactive any other licenses and be permanently employed by the
business entity or be actively engaged in the operations of the business at
least 32-hours per week or 80% of the total business operating hours per
week
- Has no ownership in the firm
- You can not file an exemption for workers compensation form if your license
is qualified by RME
Responsible Management Officer (RMO) - accurate answers-A Corporate
License Qualifier may be one of the Officers Listed on the Corporate
If an RME or RMO dissociates by leaving or dying they have ____ days to
replace the RME/RMO or the license becomes suspended until you can make
the replacement - accurate answers-90 days
In the case of the death of a partner or owner of a license you may continue
normal business operations for ongoing projects and NOT enter into new
contracts during the period for which the continuance is granted. This time
may NOT exceed _____. Continuances are not automatic. - accurate answers-1
year
Who may apply for a continuance?
1. Individual License:
2. Partnership License:
3. Corporation License:
4. Limited Liability Company: - accurate answers-1. An immediate member of
the family
Answers.
Who Needs a CA Contractors License? - accurate answers-Work that is over
$500 and becomes permanent part of the property
Who does NOT need a Contractors License? - accurate answers-- Security
Systems & Satellite Antenna Systems on Residential Structures or Property.
- Work that is less than $500
Contractor License Class A - accurate answers-General Engineering
Contractor: works on fixed works: irrigation, streets, roads, parks excavations
Contractor License Class B - accurate answers-General Building Contractor:
works on structures built for the shelter of persons or animals requiring more
than two unrelated trades of crafts. A general bustling contractor who
performs only one trade on a job (except for carpentry or framing) must have
the specialty classification for the trade
Contractor License Classification B-2 - accurate answers-Residential
Remodeling Contractor: whose principle contracting business is in connection
with any project to improvements to, on, or in an existing residential wood
frame structure, and the project requires the use of at least three unrelated
building trades
Contractor License Classification C - accurate answers-Specialty Contractors:
whose contraction work requires special skills and whose principal
contracting business involves the use of specialized building trades or crafts
Contractor License Classification C Classified - accurate answers-Specialty
Contractors Classified: Perform their trade using the art, experience, science,
and skills necessary to satisfactorily organize, administer, construct and
complete projects under their classification, in accordance with the standards
of their trade.
Individual License - accurate answers-(sole owner, sole proprietor) no
separation of finances, if the business goes bankrupt so does the individual
,Partnership - accurate answers-same as individual but there is multiple
individuals involved
Corporation - accurate answers-Full separation of finances, the individual is
not held responsible but is very complicated to set up etc.
Limited Liability Company - accurate answers-Individual has limited liability,
if the company goes bankrupt then the individual is liable for a limited
amount. It is in between the individual and corporation.
Joint Venture - accurate answers-Multiple companies come together and want
to form a larger group, this is common for very large construction projects.
Companies will get together to form the joint venture and will dissolve it after
the project is over.
License belong to
1. Individual:
2. Partnership:
3. Corporation:
4. Limited Liability Company
5. Joint Venture: - accurate answers-1. An Owner
2. All Partners
3. The Officers
4. All Managers
5. Combination of the Licensees in good standing
Register Active License every _____ years, if your license is expired a
delinquent fee of ____ % the total will be applied - accurate answers-2 years,
50%
Qualifying Individual - accurate answers-Qualifier is required for each license
issued. A qualifier is one who meets the experience and examination
requirements.
One may act as the qualifier on more than one-active license if the qualifier
owns at least ____% or more of each business entity or company. A person may
serve as the qualifying individual for no more than ____ active licenses (firms),
in any one-year period - accurate answers-20%, 3
, Who may be a Qualifying Individual?
1. Individual License:
2. Limited Liability Company:
3. Partnership License:
4. Corporation License: - accurate answers-1. Owner or RME
2. RMO, RME, or as a Responsible Managing Manager/Member
3. One of the Partners or RME
4. One of Corporate Officer as a RMO or a RME
Responsible Management Employee (RME) - accurate answers-- Qualified to
act as a qualifier for a business entity
- Can only act as a qualifying individual for one active license only
- Must make inactive any other licenses and be permanently employed by the
business entity or be actively engaged in the operations of the business at
least 32-hours per week or 80% of the total business operating hours per
week
- Has no ownership in the firm
- You can not file an exemption for workers compensation form if your license
is qualified by RME
Responsible Management Officer (RMO) - accurate answers-A Corporate
License Qualifier may be one of the Officers Listed on the Corporate
If an RME or RMO dissociates by leaving or dying they have ____ days to
replace the RME/RMO or the license becomes suspended until you can make
the replacement - accurate answers-90 days
In the case of the death of a partner or owner of a license you may continue
normal business operations for ongoing projects and NOT enter into new
contracts during the period for which the continuance is granted. This time
may NOT exceed _____. Continuances are not automatic. - accurate answers-1
year
Who may apply for a continuance?
1. Individual License:
2. Partnership License:
3. Corporation License:
4. Limited Liability Company: - accurate answers-1. An immediate member of
the family
