Utah General Contractor's Course - Business and Law
Exam Prep With complete solution new!!2025/2026
Which business organization is regulated the least by the government? - CORRECT ANSWERS
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. - CORRECT ANSWERS false
What business organization provides the most financial protection for the owners? - CORRECT
ANSWERS Corporation
Sole Proprietorships can issue and sell stock in the company to raise capital. - CORRECT
ANSWERS false
Can a corporation actually be listed as the sole owner of a property? - CORRECT ANSWERS yes
Limited Liability Companies have the ability to be passed down to family members when an
owner (member) dies. - CORRECT ANSWERS false
Sub Chapter "S" Corporations can retain their status no matter how many stockholders they
have. - CORRECT ANSWERS false
Start-up and operating costs must be considered when creating a . - CORRECT
ANSWERS financial plan
A provides potential investors with a concrete description of your successes and
qualifications. - CORRECT ANSWERS business plan
, A combines the liability protection of a corporation with the favorable tax
treatment of a partnership or sole proprietorship. - CORRECT ANSWERS 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. - CORRECT ANSWERS
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. - CORRECT ANSWERS
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. -
CORRECT ANSWERS True
If a corporation is eligible to be taxed as a partnership and chooses to take this option, it is
referred to as . - CORRECT ANSWERS S Corporation
This serves as a reminder to owners, employees, subcontractors, suppliers and customers of
what the company wants to do and become. - CORRECT ANSWERS Mission Statement
Identifying probable customers and attracting them to your product or service is known as
. - CORRECT ANSWERS Marketing
The Construction Services Commission shall be comprised of members. - CORRECT
ANSWERS nine
Which of the following is NOT required from an applicant before being issued a license? -
CORRECT ANSWERS proof of incorporation
, Each contractor licensee under a license issued under this chapter shall complete hours
of approved continuing education. - CORRECT ANSWERS 6
Contractor licenses are issued on a renewal cycle. - CORRECT ANSWERS 2 year
If a license has been suspended, the applicant must resolve any and all outstanding fines,
citations and judgements. - CORRECT ANSWERS 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 - CORRECT ANSWERS all of the above
Can an independent contractor be a qualifier for a business entity? - CORRECT ANSWERS no
The division must be notified within days, in writing, that a qualifying officer has
ceased association with a company. - CORRECT ANSWERS 10
If a qualifying person leaves a company, the license will remain active for . - CORRECT
ANSWERS 60 days
A home owner who builds three residential structures in a five year period is still exempt from
licensing requirements. - CORRECT ANSWERS True
A person engaged in the renovation of a commercial building, who works without
compensation, is exempt from licensure requirements. - CORRECT ANSWERS False
Exam Prep With complete solution new!!2025/2026
Which business organization is regulated the least by the government? - CORRECT ANSWERS
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. - CORRECT ANSWERS false
What business organization provides the most financial protection for the owners? - CORRECT
ANSWERS Corporation
Sole Proprietorships can issue and sell stock in the company to raise capital. - CORRECT
ANSWERS false
Can a corporation actually be listed as the sole owner of a property? - CORRECT ANSWERS yes
Limited Liability Companies have the ability to be passed down to family members when an
owner (member) dies. - CORRECT ANSWERS false
Sub Chapter "S" Corporations can retain their status no matter how many stockholders they
have. - CORRECT ANSWERS false
Start-up and operating costs must be considered when creating a . - CORRECT
ANSWERS financial plan
A provides potential investors with a concrete description of your successes and
qualifications. - CORRECT ANSWERS business plan
, A combines the liability protection of a corporation with the favorable tax
treatment of a partnership or sole proprietorship. - CORRECT ANSWERS 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. - CORRECT ANSWERS
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. - CORRECT ANSWERS
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. -
CORRECT ANSWERS True
If a corporation is eligible to be taxed as a partnership and chooses to take this option, it is
referred to as . - CORRECT ANSWERS S Corporation
This serves as a reminder to owners, employees, subcontractors, suppliers and customers of
what the company wants to do and become. - CORRECT ANSWERS Mission Statement
Identifying probable customers and attracting them to your product or service is known as
. - CORRECT ANSWERS Marketing
The Construction Services Commission shall be comprised of members. - CORRECT
ANSWERS nine
Which of the following is NOT required from an applicant before being issued a license? -
CORRECT ANSWERS proof of incorporation
, Each contractor licensee under a license issued under this chapter shall complete hours
of approved continuing education. - CORRECT ANSWERS 6
Contractor licenses are issued on a renewal cycle. - CORRECT ANSWERS 2 year
If a license has been suspended, the applicant must resolve any and all outstanding fines,
citations and judgements. - CORRECT ANSWERS 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 - CORRECT ANSWERS all of the above
Can an independent contractor be a qualifier for a business entity? - CORRECT ANSWERS no
The division must be notified within days, in writing, that a qualifying officer has
ceased association with a company. - CORRECT ANSWERS 10
If a qualifying person leaves a company, the license will remain active for . - CORRECT
ANSWERS 60 days
A home owner who builds three residential structures in a five year period is still exempt from
licensing requirements. - CORRECT ANSWERS True
A person engaged in the renovation of a commercial building, who works without
compensation, is exempt from licensure requirements. - CORRECT ANSWERS False
