CALIFORNIA CONTRACTORS LAW AND BUSINESS
LATEST 2026 EXAMS TEST QUESTIONS AND SOLUTIONS
SCORED A+
✔✔how long should you keep lead pamphlet receipt for - ✔✔must be kept for 3 years
✔✔bonds or cash deposits should be under whos name - ✔✔the licensee
✔✔how soon should you do a publication - ✔✔you must publish within 60 days for 3
consecutives publications
✔✔who certifies when a project is complete and the work meets conditions of the
contract documents - ✔✔the architect or the engineer
✔✔what are progress payments - ✔✔are partial payments made after specified phases
of construction are complete
✔✔what is the single prime method - ✔✔its when a project owner hires an architectural
firm to design the project the contractor then perfume the work
✔✔what is a payment bond - ✔✔guarantees that subcontractors and suppliers will be
paid for work if they perform properly under the contract
✔✔a corporate name may be reserved with the corporation commission for how many
days - ✔✔120 days prior to incorporation
✔✔how long should employees keep tax records for? - ✔✔at least 4 years
✔✔what is all risk builders insurance - ✔✔it covers property owners n builders for
buildings under construction. typically covers machinery equipment , materials supplies
and fixtures
✔✔what is property insurance - ✔✔typically it covers your business n personal property
when damaged theft or loss..
✔✔what is works comp - ✔✔it protects employees when they get injured at work
✔✔what is design and build - ✔✔the owner contracts one company to complete the
process from start to finish
✔✔what is company overhead - ✔✔its the cost of doing business . in other words
keeping it running. like office rent, taxes, phone, accounting fees
, ✔✔who are exempt from maintaining osha records - ✔✔employers with 10 or fewer
employees
✔✔what happens when 1 of the parties involved fails to perform in accordance with any
of the terms and condition of the contract - ✔✔they go into a breach of contract
✔✔the registrar may impose civil penalties of not to exceed how much per violation -
✔✔not to exceed over 500 dollars
✔✔every person making an application for a license shall pay an assessment of not
more than how much - ✔✔600 dollars
✔✔any person who is or was at the time of omission named on the license is not
eligible to receive a new license until when ?? - ✔✔until the fund is paid in full
✔✔if any amount is paid from the fund settlement of a claim arising the license will
automatically be suspended by operation of law until when?? - ✔✔until the amount paid
from the fund is repaid in full plus interest of 10% a year
✔✔the liability of the fund shall not exceed how much money - ✔✔200,000 dollars
✔✔what is the equation for the balance sheet - ✔✔assets= liabilities+owners equity
✔✔performance bond - ✔✔guarantees that the contractor will complete a contract
within its time frame and conditions
✔✔what is the equation for the working capital - ✔✔current assets -currents liabilities
=working capital
✔✔how long is the register of a trade name effective for - ✔✔5 years
✔✔how many days do you have to answer a complaint?
what happens if you don't reply - ✔✔you have 10 days to reply.
if you don't reply your license will be suspended or revoked
✔✔how long are az license valid for - ✔✔2 years
✔✔how many employees do you need to have an emergency action plan - ✔✔more
than 10 employees and it must be in writing
✔✔how many employees must you have in order to get works comp?? - ✔✔1 or more
LATEST 2026 EXAMS TEST QUESTIONS AND SOLUTIONS
SCORED A+
✔✔how long should you keep lead pamphlet receipt for - ✔✔must be kept for 3 years
✔✔bonds or cash deposits should be under whos name - ✔✔the licensee
✔✔how soon should you do a publication - ✔✔you must publish within 60 days for 3
consecutives publications
✔✔who certifies when a project is complete and the work meets conditions of the
contract documents - ✔✔the architect or the engineer
✔✔what are progress payments - ✔✔are partial payments made after specified phases
of construction are complete
✔✔what is the single prime method - ✔✔its when a project owner hires an architectural
firm to design the project the contractor then perfume the work
✔✔what is a payment bond - ✔✔guarantees that subcontractors and suppliers will be
paid for work if they perform properly under the contract
✔✔a corporate name may be reserved with the corporation commission for how many
days - ✔✔120 days prior to incorporation
✔✔how long should employees keep tax records for? - ✔✔at least 4 years
✔✔what is all risk builders insurance - ✔✔it covers property owners n builders for
buildings under construction. typically covers machinery equipment , materials supplies
and fixtures
✔✔what is property insurance - ✔✔typically it covers your business n personal property
when damaged theft or loss..
✔✔what is works comp - ✔✔it protects employees when they get injured at work
✔✔what is design and build - ✔✔the owner contracts one company to complete the
process from start to finish
✔✔what is company overhead - ✔✔its the cost of doing business . in other words
keeping it running. like office rent, taxes, phone, accounting fees
, ✔✔who are exempt from maintaining osha records - ✔✔employers with 10 or fewer
employees
✔✔what happens when 1 of the parties involved fails to perform in accordance with any
of the terms and condition of the contract - ✔✔they go into a breach of contract
✔✔the registrar may impose civil penalties of not to exceed how much per violation -
✔✔not to exceed over 500 dollars
✔✔every person making an application for a license shall pay an assessment of not
more than how much - ✔✔600 dollars
✔✔any person who is or was at the time of omission named on the license is not
eligible to receive a new license until when ?? - ✔✔until the fund is paid in full
✔✔if any amount is paid from the fund settlement of a claim arising the license will
automatically be suspended by operation of law until when?? - ✔✔until the amount paid
from the fund is repaid in full plus interest of 10% a year
✔✔the liability of the fund shall not exceed how much money - ✔✔200,000 dollars
✔✔what is the equation for the balance sheet - ✔✔assets= liabilities+owners equity
✔✔performance bond - ✔✔guarantees that the contractor will complete a contract
within its time frame and conditions
✔✔what is the equation for the working capital - ✔✔current assets -currents liabilities
=working capital
✔✔how long is the register of a trade name effective for - ✔✔5 years
✔✔how many days do you have to answer a complaint?
what happens if you don't reply - ✔✔you have 10 days to reply.
if you don't reply your license will be suspended or revoked
✔✔how long are az license valid for - ✔✔2 years
✔✔how many employees do you need to have an emergency action plan - ✔✔more
than 10 employees and it must be in writing
✔✔how many employees must you have in order to get works comp?? - ✔✔1 or more
