Utah General Contractor Business & Law Exam | Study Guide & Practice Test
Which business organization is regulated the least by the government? - (answer)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. - (answer)false
What business organization provides the most financial protection for the owners? -
(answer)Corporation
Sole Proprietorships can issue and sell stock in the company to raise capital. - (answer)false
Can a corporation actually be listed as the sole owner of a property? - (answer)yes
Limited Liability Companies have the ability to be passed down to family members when an owner
(member) dies. - (answer)false
Sub Chapter "S" Corporations can retain their status no matter how many stockholders they have. -
(answer)false
Start-up and operating costs must be considered when creating a ____________ . - (answer)financial
plan
A _________ provides potential investors with a concrete description of your successes and
qualifications. - (answer)business plan
A _______________ combines the liability protection of a corporation with the favorable tax treatment
of a partnership or sole proprietorship. - (answer)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. - (answer)Limited Partnerships
,Utah General Contractor Business & Law Exam | Study Guide & Practice Test
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. - (answer)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. - (answer)True
If a corporation is eligible to be taxed as a partnership and chooses to take this option, it is referred to as
___________________. - (answer)S Corporation
This serves as a reminder to owners, employees, subcontractors, suppliers and customers of what the
company wants to do and become. - (answer)Mission Statement
Identifying probable customers and attracting them to your product or service is known as
_______________. - (answer)Marketing
The Construction Services Commission shall be comprised of ______ members. - (answer)nine
Which of the following is NOT required from an applicant before being issued a license? - (answer)proof
of incorporation
Each contractor licensee under a license issued under this chapter shall complete _____ hours of
approved continuing education. - (answer)6
Contractor licenses are issued on a _____ renewal cycle. - (answer)2 year
If a license has been suspended, the applicant must resolve any and all outstanding fines, citations and
judgements. - (answer)True
A contractor license number must be attached to which of the following?
1 permit applications
, Utah General Contractor Business & Law Exam | Study Guide & Practice Test
2 bids (when a license is required)
3 contracts
4 all of the above - (answer)all of the above
Can an independent contractor be a qualifier for a business entity? - (answer)no
The division must be notified within _______ days, in writing, that a qualifying officer has ceased
association with a company. - (answer)10
If a qualifying person leaves a company, the license will remain active for ______ . - (answer)60 days
A home owner who builds three residential structures in a five year period is still exempt from licensing
requirements. - (answer)True
A person engaged in the renovation of a commercial building, who works without compensation, is
exempt from licensure requirements. - (answer)False
If the total value of a project is greater than $_______, the builder shall file with the division a one-time
affirmation. - (answer)$1,000
Does a contractor working on a project valued at $2,500, who has filed a one-time affirmation with the
division, have to show proof of public liability insurance? - (answer)Yes
Who is responsible for the investigation of persons and activities in violation of the Utah Construction
Trades Licensing Act? - (answer)the Division of Occupational/Professional Licensing
Which of the following is not considered "unlawful"? - (answer)deliberate departure from plans or
specifications
Which of the following is considered "unprofessional conduct"?
Which business organization is regulated the least by the government? - (answer)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. - (answer)false
What business organization provides the most financial protection for the owners? -
(answer)Corporation
Sole Proprietorships can issue and sell stock in the company to raise capital. - (answer)false
Can a corporation actually be listed as the sole owner of a property? - (answer)yes
Limited Liability Companies have the ability to be passed down to family members when an owner
(member) dies. - (answer)false
Sub Chapter "S" Corporations can retain their status no matter how many stockholders they have. -
(answer)false
Start-up and operating costs must be considered when creating a ____________ . - (answer)financial
plan
A _________ provides potential investors with a concrete description of your successes and
qualifications. - (answer)business plan
A _______________ combines the liability protection of a corporation with the favorable tax treatment
of a partnership or sole proprietorship. - (answer)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. - (answer)Limited Partnerships
,Utah General Contractor Business & Law Exam | Study Guide & Practice Test
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. - (answer)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. - (answer)True
If a corporation is eligible to be taxed as a partnership and chooses to take this option, it is referred to as
___________________. - (answer)S Corporation
This serves as a reminder to owners, employees, subcontractors, suppliers and customers of what the
company wants to do and become. - (answer)Mission Statement
Identifying probable customers and attracting them to your product or service is known as
_______________. - (answer)Marketing
The Construction Services Commission shall be comprised of ______ members. - (answer)nine
Which of the following is NOT required from an applicant before being issued a license? - (answer)proof
of incorporation
Each contractor licensee under a license issued under this chapter shall complete _____ hours of
approved continuing education. - (answer)6
Contractor licenses are issued on a _____ renewal cycle. - (answer)2 year
If a license has been suspended, the applicant must resolve any and all outstanding fines, citations and
judgements. - (answer)True
A contractor license number must be attached to which of the following?
1 permit applications
, Utah General Contractor Business & Law Exam | Study Guide & Practice Test
2 bids (when a license is required)
3 contracts
4 all of the above - (answer)all of the above
Can an independent contractor be a qualifier for a business entity? - (answer)no
The division must be notified within _______ days, in writing, that a qualifying officer has ceased
association with a company. - (answer)10
If a qualifying person leaves a company, the license will remain active for ______ . - (answer)60 days
A home owner who builds three residential structures in a five year period is still exempt from licensing
requirements. - (answer)True
A person engaged in the renovation of a commercial building, who works without compensation, is
exempt from licensure requirements. - (answer)False
If the total value of a project is greater than $_______, the builder shall file with the division a one-time
affirmation. - (answer)$1,000
Does a contractor working on a project valued at $2,500, who has filed a one-time affirmation with the
division, have to show proof of public liability insurance? - (answer)Yes
Who is responsible for the investigation of persons and activities in violation of the Utah Construction
Trades Licensing Act? - (answer)the Division of Occupational/Professional Licensing
Which of the following is not considered "unlawful"? - (answer)deliberate departure from plans or
specifications
Which of the following is considered "unprofessional conduct"?
