MHIC CONTRACTOR LICENSE FINAL EXAM | COMPLETE QUESTIONS WITH 100%
RATED EXPERT SOLUTIONS |2026 LATEST UPDATED
1. Small tools and company pickup trucks are considered direct project costs.
A) True
B) False: False
2. The minimum number of hours of paid time off an employer is required to provide under FLSA is/are _______.
A) 40
B) zero
C) 8
D) 16: zero
3. When damage, theft, or loss occurs, which type of insurance covers your business and personal property?
A) Inland Marine/ Equipment Theft Insurance
B) Transportation Floater and Motor Truck Cargo Insurance
C) Property Insurance
D) All-Risk Builder's Insurance: Property Insurance
4. Which of the following would NOT be listed on the income statement?
A) Sales
B) Selling Expenses
C) Equity
D) Insurance: Equity
5. Before beginning any construction, employers should conduct:
A) Site estimate
B) Environmental audit
C) Thorough site survey
D) Supplier survey: Thorough site survey
6. Advertising is only regulated for print publications.
A) True
B) False: False
7. If the MHIC Fund drops below a certain amount, what can the Commission do?
,A) Borrow from the general fund
B) Shut down license processing
C) Assess a $50 fee per contractor
D) Offer payment plans: Assess a $50 fee per contractor
8. Unlicensed work on a residential property is considered a criminal offense.
A) True
B) False: True
9. Employers can terminate an employee for jury duty.
A) True
B) False: False
10. If a buyer is over 65 and signs a home improvement contract, the cancellation deadline is:
A) 3 business days B) 5
calendar days
C) 7 business days
D) 10 days: 7 business days
11. Who pays for workers' compensation insurance in Maryland?
A) Employee
B) Employer
C) State
D) Union: Employer
12. Employees under 18 can work in all construction jobs.
A) True
B) False: False
13. Since it is short-term debt, _______ is usually considered to be a liability.
A) copyright
B) cash
C) trade credit
D) land: trade credit
14. Unless filed electronically, Copy A of the W-2 and the entire page of the W-3 form must be sent to the Social
Security Administration by _______.
A) December 31
, B) April 15
C) The last day in March
D) The last day in February: The last day in February
15. Who is ultimately responsible for creating a safe working environment?
A) OSHA
B) The employees
C) The employer
D) Contractors' board: The employer
16. This insurance provides for direct physical loss to equipment. This insurance is known as a/an _______.
A) Equipment Floater Policy
B) Named Peril Builders' Risk
C) All-Risk Builder's Risk
D) Inland Marine: Equipment Floater Policy
17. What must be displayed on a contractor's work vehicle?
A) VIN
B) Phone number
C) MHIC #
D) Website: MHIC #
18. Who may conduct formal mediation for disputes between contractors and homeowners?
A) The local building inspector
B) The contractor's attorney
C) The Maryland Home Improvement Commission
D) The Better Business Bureau: The Maryland Home Improvement Commission
19. The maximum amount a contractor can accept before work begins is:
A) 10%
B) 25%
C) 33%
D) 50%: 33%
20. A home improvement contract that includes financing must include:
A) The contractor's tax ID
RATED EXPERT SOLUTIONS |2026 LATEST UPDATED
1. Small tools and company pickup trucks are considered direct project costs.
A) True
B) False: False
2. The minimum number of hours of paid time off an employer is required to provide under FLSA is/are _______.
A) 40
B) zero
C) 8
D) 16: zero
3. When damage, theft, or loss occurs, which type of insurance covers your business and personal property?
A) Inland Marine/ Equipment Theft Insurance
B) Transportation Floater and Motor Truck Cargo Insurance
C) Property Insurance
D) All-Risk Builder's Insurance: Property Insurance
4. Which of the following would NOT be listed on the income statement?
A) Sales
B) Selling Expenses
C) Equity
D) Insurance: Equity
5. Before beginning any construction, employers should conduct:
A) Site estimate
B) Environmental audit
C) Thorough site survey
D) Supplier survey: Thorough site survey
6. Advertising is only regulated for print publications.
A) True
B) False: False
7. If the MHIC Fund drops below a certain amount, what can the Commission do?
,A) Borrow from the general fund
B) Shut down license processing
C) Assess a $50 fee per contractor
D) Offer payment plans: Assess a $50 fee per contractor
8. Unlicensed work on a residential property is considered a criminal offense.
A) True
B) False: True
9. Employers can terminate an employee for jury duty.
A) True
B) False: False
10. If a buyer is over 65 and signs a home improvement contract, the cancellation deadline is:
A) 3 business days B) 5
calendar days
C) 7 business days
D) 10 days: 7 business days
11. Who pays for workers' compensation insurance in Maryland?
A) Employee
B) Employer
C) State
D) Union: Employer
12. Employees under 18 can work in all construction jobs.
A) True
B) False: False
13. Since it is short-term debt, _______ is usually considered to be a liability.
A) copyright
B) cash
C) trade credit
D) land: trade credit
14. Unless filed electronically, Copy A of the W-2 and the entire page of the W-3 form must be sent to the Social
Security Administration by _______.
A) December 31
, B) April 15
C) The last day in March
D) The last day in February: The last day in February
15. Who is ultimately responsible for creating a safe working environment?
A) OSHA
B) The employees
C) The employer
D) Contractors' board: The employer
16. This insurance provides for direct physical loss to equipment. This insurance is known as a/an _______.
A) Equipment Floater Policy
B) Named Peril Builders' Risk
C) All-Risk Builder's Risk
D) Inland Marine: Equipment Floater Policy
17. What must be displayed on a contractor's work vehicle?
A) VIN
B) Phone number
C) MHIC #
D) Website: MHIC #
18. Who may conduct formal mediation for disputes between contractors and homeowners?
A) The local building inspector
B) The contractor's attorney
C) The Maryland Home Improvement Commission
D) The Better Business Bureau: The Maryland Home Improvement Commission
19. The maximum amount a contractor can accept before work begins is:
A) 10%
B) 25%
C) 33%
D) 50%: 33%
20. A home improvement contract that includes financing must include:
A) The contractor's tax ID
