California State Contractors License
Law and Business Test Study Guide
Questions with Revised and Correctly
Verified Answers
Who must be licensed as a contractor? - Correct Answers -Anyone who constructs or alters on
any job that costs 500 dollars or more.
How old do your have to be to get a contractors license. - Correct Answers -18
What are the types of licenses issued. - Correct Answers -Individual, partnership, or corporation
licenses. Joint Venture licenses are made up of 2 individual active licenses for a specific purpose.
Does California recognize contractors licenses from other states or countries? - Correct Answers
-No
What charge is it to contract without a license? - Correct Answers -Misdemeanor, meaning
potential jail time, fines and administrative fines
Are there educational requirements to obtain a contractors license? - Correct Answers -No
Can technical training and apprenticeship training substitute the required training required for
the 4 years needed. - Correct Answers -Yes. As long as the applicant has a minimum of 1 year of
practical experience.
Are all applicants required to submit to a background check? - Correct Answers -Yes
,What are the total fees I must pay to obtain a contractor license? - Correct Answers -$480.00.
The non-refundable processing fee of $300 and the two year initial license fee of $180. Current
fees are printed on the application forms and notices.
How often do I have to renew my license? - Correct Answers -every two years
Will I receive notice before my active license expires? - Correct Answers -Yes. 60 days, but
remember it is your responsibility to know and renew without being reminded.
What is the active license renewal fee? - Correct Answers -$360. You are required to renew
every two years.
Is there a fee for renewing an active license - Correct Answers -$180.
Inactive licenses must be renewed how often? - Correct Answers -Every four years
What is the minimum operating capital that you must have to qualify to be a contractor? -
Correct Answers -$2500
If you are changing the business name or address, or changing the personnel or business type,
how long do you have to notify the state of those changes? - Correct Answers -90 days
If you change owners or the business entity, changing the license structure, can you renew your
license at the end of the year or do you need to apply for a new one. - Correct Answers -Apply
for a new one.
Can your old license be renewed? - Correct Answers -Yes. If your license has been expired
between 3 to 5 years.
, Another name for the qualifier. - Correct Answers -The test-taker. Or the person whom the
license is going to be issued.
What is the qualifier called if he/she is an individual? - Correct Answers -The owner
What is the qualifier called if he or she is a partner? - Correct Answers -Qualifying Partner.
What is the qualifier called if he or she is an officer? - Correct Answers -RMO, Responsible
Managing Officer
What is the qualifier called if he or she is an employee? - Correct Answers -RME, Responsible
Managing Employee
How many hours is an RME, Responsible Managing Employee required to work. - Correct
Answers -80% or 32 hours
How many licenses can an Owner or Qualifying Partner qualify for at a time. - Correct Answers -
3
How may licenses can an RME or RMO qualify for at a time? - Correct Answers -1
Can you lend your license to someone? - Correct Answers -No. That would be punishable by law.
Can you abandon a project without a legal excuse? - Correct Answers -No. This would be cause
for disciplinary action. It is classified as "Breach of Contract".
A contractor is not prohibited from taking and executing a contract involving the use of two or
more crafts or trades, if the performance of the work is _____ and supplemental to the primary
Law and Business Test Study Guide
Questions with Revised and Correctly
Verified Answers
Who must be licensed as a contractor? - Correct Answers -Anyone who constructs or alters on
any job that costs 500 dollars or more.
How old do your have to be to get a contractors license. - Correct Answers -18
What are the types of licenses issued. - Correct Answers -Individual, partnership, or corporation
licenses. Joint Venture licenses are made up of 2 individual active licenses for a specific purpose.
Does California recognize contractors licenses from other states or countries? - Correct Answers
-No
What charge is it to contract without a license? - Correct Answers -Misdemeanor, meaning
potential jail time, fines and administrative fines
Are there educational requirements to obtain a contractors license? - Correct Answers -No
Can technical training and apprenticeship training substitute the required training required for
the 4 years needed. - Correct Answers -Yes. As long as the applicant has a minimum of 1 year of
practical experience.
Are all applicants required to submit to a background check? - Correct Answers -Yes
,What are the total fees I must pay to obtain a contractor license? - Correct Answers -$480.00.
The non-refundable processing fee of $300 and the two year initial license fee of $180. Current
fees are printed on the application forms and notices.
How often do I have to renew my license? - Correct Answers -every two years
Will I receive notice before my active license expires? - Correct Answers -Yes. 60 days, but
remember it is your responsibility to know and renew without being reminded.
What is the active license renewal fee? - Correct Answers -$360. You are required to renew
every two years.
Is there a fee for renewing an active license - Correct Answers -$180.
Inactive licenses must be renewed how often? - Correct Answers -Every four years
What is the minimum operating capital that you must have to qualify to be a contractor? -
Correct Answers -$2500
If you are changing the business name or address, or changing the personnel or business type,
how long do you have to notify the state of those changes? - Correct Answers -90 days
If you change owners or the business entity, changing the license structure, can you renew your
license at the end of the year or do you need to apply for a new one. - Correct Answers -Apply
for a new one.
Can your old license be renewed? - Correct Answers -Yes. If your license has been expired
between 3 to 5 years.
, Another name for the qualifier. - Correct Answers -The test-taker. Or the person whom the
license is going to be issued.
What is the qualifier called if he/she is an individual? - Correct Answers -The owner
What is the qualifier called if he or she is a partner? - Correct Answers -Qualifying Partner.
What is the qualifier called if he or she is an officer? - Correct Answers -RMO, Responsible
Managing Officer
What is the qualifier called if he or she is an employee? - Correct Answers -RME, Responsible
Managing Employee
How many hours is an RME, Responsible Managing Employee required to work. - Correct
Answers -80% or 32 hours
How many licenses can an Owner or Qualifying Partner qualify for at a time. - Correct Answers -
3
How may licenses can an RME or RMO qualify for at a time? - Correct Answers -1
Can you lend your license to someone? - Correct Answers -No. That would be punishable by law.
Can you abandon a project without a legal excuse? - Correct Answers -No. This would be cause
for disciplinary action. It is classified as "Breach of Contract".
A contractor is not prohibited from taking and executing a contract involving the use of two or
more crafts or trades, if the performance of the work is _____ and supplemental to the primary
