CSLB TEST LAW EXAM ACTUAL QUESTIONS AND ANSWERS

CSLBTEST LAW EXAMACTUALQUESTIONSAND v v v v v v




ANSWERS 2024/2025 A+ GRADE.
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AYperson may serve as the qualifying individual for no more than three (3) firms in any one-year period - correct
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SOLE OWNERSHIP LICENSE, your qualifier may be either an RME or you, the owner - correct answer- Business
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income is reported as personal income; not transferable
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PARTNERSHIP LICENSE, your qualifier may either be one of the general partners (who shall be designated as the v v v v v v v v v v v v v v v v v




qualifying partner) or an RME - correct answer-
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Uses the financial and personal resources of two or more individuals who share in the owningYand runnin g of
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the business. It's easily established requiring only the registration of the business name if one of the people
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leaves they must request a one year continuance license
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CORPORATE LICENSE, your qualifier may be either oneYif the officers listed in CSLB Records for your licens e or
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an RME - correct answer-
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SEPARATELEGALYENTITYcreatedby thegovernment.May raisecapital bysellingstockYto privateinvestor s or
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to the public; 90 days if you add one person
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LIMITED LIABILITY COMPANY LICENSE your qualifier may be a responsible managing member, responsibl e
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managing manager, RMO or RME - correct answer-
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Hybrid of a partnership and a corporation. It's owners are shielded from personal liability and all profits a nd
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losses pass directly to the owners without taxation of the entity itself. LLCYis owned by its members; 9 0 days
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Yes. It is your responsibility to file a contractor license bond valued at $15,000 or equivalent cash deposit with
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the registrar - correct answer-
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If you have a limited liability company license, a separate $100,000 surety bond is required for the benefi t of
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an employee or worker damaged - correct answer-
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Most bonds are issued for a period of one (1) to three (3) years - correct answer-
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, All contractors are requiredto present proof of workers compensation insurance coverage as a condition of
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licensure or to maintain an active license - correct answer-
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How long isYa license valid? - correct answer-
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Two years from the last day of the month in which it was issued
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License renewed - correct answer- v v v v




Every 2 years if renewed on an active status or for four years if renewed inactive status
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Contractor bondis required $15,000 for all classification - correct answer- v v v v v v v v v v




Bonds are not transferable--- v v v




they cannot be transferred from one license to another or from one qualifying individual to another - correct
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Bonds must be filed with the CSLB within 90 days of the effective date of the bond - correct answer-
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You may add a classification to your existing license only if the license is renewed or current - correct
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OSHA (3) days for serious violations and within (14) days for non serious violations - correct answer-
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No minor, under the age of 16 shall be employed or permitted to work in any capacity of hard labor - correct
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BONDS 1%-2% - correct answer- v v v v




PERFORMANCE BONDS - correct answer- v v v v




Guarantee the projects completion according to building plans and specifications. If the job is abandoned or
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the workYis unacceptable, the bonding company has the option of hiring another contractor to compl ete the
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work or of settlingYfor damages
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