MICHIGAN BUILDERS LICENSE TEST BANK
UPDATED COMPLETE QUESTIONS WITH
ACCURATE ANSWERS
●● What is the penalty for engaging in the practice of residential
builders license, resulting in a death?
Answer: not less than $5,000 and not more than $25,000 and/or four
years
●● on your individual builder's license application, what should you
write as your "business address"?
Answer: Your personal address
●● After receiving your residential builder's license, what are the only
trades not covered by your license
Answer: Plumbing, electrical, and HVAC
●● What is a quick asset ratio?
Answer: 1 to 1
●● Under the Carpentry section of the test, what does a "span table" tell
us?
,Answer: what species and what grade of lumber a floor joist has to be to
span a certain distance
●● Who, upon completion of a hearing, shall assess a penalty or
penalties?
Answer: The Board
●● If you fail to renew your license or registration on or before the
expiration date, how many days do you have to resubmit with the proper
payment and late fee?
Answer: 60 days
●● When the department is investigating a complaint and finds evidence
of a violation, what actions can be brought against the respondent?
Answer: a citation | a formal complaint | a cease and desist order
●● How many days after the adminstrative law hearings examiner hears
the report, must a determination of penalites be made by the board?
Answer: 60 days
●● What is a compliance conference?
Answer: a meeting where the respondent meets with the department to
discuss the complaint against them
,●● Which is NOT a reason that you need a residential business license?
Answer: It allows you to work on commercial properties
●● Where does most fraud occur?
Answer: in the residential market
●● As a builder, your licence falls under the regulation of
Answer: Both rules by the director and board as well as laws of the state
of Michigan
●● What is the make up of the 9 members of the board?
Answer: 4 residential builders, 2 M + A contractors, and 3 members of
the general public
●● Under the definition of occupational code, what does the word
"limitation" refer to?
Answer: a condition, stricture, restraint or probation attatched to a
license relative to the scope of practice
●● Which of the following is NOT a possible penalty for operating
without a residential builder's license?
Answer: a fine of $50,000
, ●● Which of the following terms means a premise used or intended to
be used for a residence purpose and related facilities appurtenant to the
premises used or intended to be used as an adjunct of residential
occupancy?
Answer: residential structure
●● An employee other than the listed salesperson may make a sale when
Answer: An employee other than the listed salesperson may make a sale
when
●● Which of the following is a reason that someone would be allowed to
operate without a residential business license?
Answer: They are an authorized representative of the United States
government
They are the owner of a rental property with reference to the
maintenance and alteration of that rental property
An owner of property with reference to a structure on the property for
the owner's own use and occupancy
●● Beginning the license cycle after December 21, 2007, the department
shall issue the license of a residential builder and residential
maintenance and alteration contractor for a period of how many years in
duration?
UPDATED COMPLETE QUESTIONS WITH
ACCURATE ANSWERS
●● What is the penalty for engaging in the practice of residential
builders license, resulting in a death?
Answer: not less than $5,000 and not more than $25,000 and/or four
years
●● on your individual builder's license application, what should you
write as your "business address"?
Answer: Your personal address
●● After receiving your residential builder's license, what are the only
trades not covered by your license
Answer: Plumbing, electrical, and HVAC
●● What is a quick asset ratio?
Answer: 1 to 1
●● Under the Carpentry section of the test, what does a "span table" tell
us?
,Answer: what species and what grade of lumber a floor joist has to be to
span a certain distance
●● Who, upon completion of a hearing, shall assess a penalty or
penalties?
Answer: The Board
●● If you fail to renew your license or registration on or before the
expiration date, how many days do you have to resubmit with the proper
payment and late fee?
Answer: 60 days
●● When the department is investigating a complaint and finds evidence
of a violation, what actions can be brought against the respondent?
Answer: a citation | a formal complaint | a cease and desist order
●● How many days after the adminstrative law hearings examiner hears
the report, must a determination of penalites be made by the board?
Answer: 60 days
●● What is a compliance conference?
Answer: a meeting where the respondent meets with the department to
discuss the complaint against them
,●● Which is NOT a reason that you need a residential business license?
Answer: It allows you to work on commercial properties
●● Where does most fraud occur?
Answer: in the residential market
●● As a builder, your licence falls under the regulation of
Answer: Both rules by the director and board as well as laws of the state
of Michigan
●● What is the make up of the 9 members of the board?
Answer: 4 residential builders, 2 M + A contractors, and 3 members of
the general public
●● Under the definition of occupational code, what does the word
"limitation" refer to?
Answer: a condition, stricture, restraint or probation attatched to a
license relative to the scope of practice
●● Which of the following is NOT a possible penalty for operating
without a residential builder's license?
Answer: a fine of $50,000
, ●● Which of the following terms means a premise used or intended to
be used for a residence purpose and related facilities appurtenant to the
premises used or intended to be used as an adjunct of residential
occupancy?
Answer: residential structure
●● An employee other than the listed salesperson may make a sale when
Answer: An employee other than the listed salesperson may make a sale
when
●● Which of the following is a reason that someone would be allowed to
operate without a residential business license?
Answer: They are an authorized representative of the United States
government
They are the owner of a rental property with reference to the
maintenance and alteration of that rental property
An owner of property with reference to a structure on the property for
the owner's own use and occupancy
●● Beginning the license cycle after December 21, 2007, the department
shall issue the license of a residential builder and residential
maintenance and alteration contractor for a period of how many years in
duration?
