UTAH GENERAL CONTRACTOR'S
COURSE - BUSINESS AND LAW EXAM
2025/2026 QUESTIONS AND ANSWERS
100% PASS.
Which business organization is regulated the least by the government? - ANS Sole
Proprietorship
In a general partnership, each partner is liable for the debt of the company up to the percentage
of the company they own. - ANS false
What business organization provides the most financial protection for the owners? -
ANS Corporation
Sole Proprietorships can issue and sell stock in the company to raise capital. - ANS false
Can a corporation actually be listed as the sole owner of a property? - ANS yes
Limited Liability Companies have the ability to be passed down to family members when an
owner (member) dies. - ANS false
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Sub Chapter "S" Corporations can retain their status no matter how many stockholders they
have. - ANS false
Start-up and operating costs must be considered when creating a ____________ . -
ANS financial plan
A _________ provides potential investors with a concrete description of your successes and
qualifications. - ANS business plan
A _______________ combines the liability protection of a corporation with the favorable tax
treatment of a partnership or sole proprietorship. - ANS LLC
_____________ have a partner who contributes funds and or property to the business, but does
not provide any services or have any say in the day to day business. - ANS Limited
Partnerships
It is a good idea to research business names through the ___________ website to avoid creating
a business name that is too similar to another registered name. - ANS Secretary of State
One pitfall of a General Partnership is that each partner is personally responsible for the debts
of the business, and this debt responsibility is not limited to the percentage of ownership. -
ANS True
If a corporation is eligible to be taxed as a partnership and chooses to take this option, it is
referred to as ___________________. - ANS S Corporation
This serves as a reminder to owners, employees, subcontractors, suppliers and customers of
what the company wants to do and become. - ANS Mission Statement
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Identifying probable customers and attracting them to your product or service is known as
_______________. - ANS Marketing
The Construction Services Commission shall be comprised of ______ members. - ANS nine
Which of the following is NOT required from an applicant before being issued a license? -
ANS proof of incorporation
Each contractor licensee under a license issued under this chapter shall complete _____ hours
of approved continuing education. - ANS 6
Contractor licenses are issued on a _____ renewal cycle. - ANS 2 year
If a license has been suspended, the applicant must resolve any and all outstanding fines,
citations and judgements. - ANS True
A contractor license number must be attached to which of the following?
1 permit applications
2 bids (when a license is required)
3 contracts
4 all of the above - ANS all of the above
Can an independent contractor be a qualifier for a business entity? - ANS no
The division must be notified within _______ days, in writing, that a qualifying officer has
ceased association with a company. - ANS 10
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
COURSE - BUSINESS AND LAW EXAM
2025/2026 QUESTIONS AND ANSWERS
100% PASS.
Which business organization is regulated the least by the government? - ANS Sole
Proprietorship
In a general partnership, each partner is liable for the debt of the company up to the percentage
of the company they own. - ANS false
What business organization provides the most financial protection for the owners? -
ANS Corporation
Sole Proprietorships can issue and sell stock in the company to raise capital. - ANS false
Can a corporation actually be listed as the sole owner of a property? - ANS yes
Limited Liability Companies have the ability to be passed down to family members when an
owner (member) dies. - ANS false
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Sub Chapter "S" Corporations can retain their status no matter how many stockholders they
have. - ANS false
Start-up and operating costs must be considered when creating a ____________ . -
ANS financial plan
A _________ provides potential investors with a concrete description of your successes and
qualifications. - ANS business plan
A _______________ combines the liability protection of a corporation with the favorable tax
treatment of a partnership or sole proprietorship. - ANS LLC
_____________ have a partner who contributes funds and or property to the business, but does
not provide any services or have any say in the day to day business. - ANS Limited
Partnerships
It is a good idea to research business names through the ___________ website to avoid creating
a business name that is too similar to another registered name. - ANS Secretary of State
One pitfall of a General Partnership is that each partner is personally responsible for the debts
of the business, and this debt responsibility is not limited to the percentage of ownership. -
ANS True
If a corporation is eligible to be taxed as a partnership and chooses to take this option, it is
referred to as ___________________. - ANS S Corporation
This serves as a reminder to owners, employees, subcontractors, suppliers and customers of
what the company wants to do and become. - ANS Mission Statement
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Identifying probable customers and attracting them to your product or service is known as
_______________. - ANS Marketing
The Construction Services Commission shall be comprised of ______ members. - ANS nine
Which of the following is NOT required from an applicant before being issued a license? -
ANS proof of incorporation
Each contractor licensee under a license issued under this chapter shall complete _____ hours
of approved continuing education. - ANS 6
Contractor licenses are issued on a _____ renewal cycle. - ANS 2 year
If a license has been suspended, the applicant must resolve any and all outstanding fines,
citations and judgements. - ANS True
A contractor license number must be attached to which of the following?
1 permit applications
2 bids (when a license is required)
3 contracts
4 all of the above - ANS all of the above
Can an independent contractor be a qualifier for a business entity? - ANS no
The division must be notified within _______ days, in writing, that a qualifying officer has
ceased association with a company. - ANS 10
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
