1|Page
UTAH (UT) CONTRACTOR BUSINESS AND LAW
EXAMINATION COMPLETE VERIFIED QUESTIONS
AND DETAILED SOLUTIONS LATEST UPDATE THIS
YEAR JUST RELEASED
Sub Chapter "S" Corporations can retain their status no
matter how many stockholders they have. - Answer-false
Start-up and operating costs must be considered when
creating a ____________ . - Answer-financial plan
A _________ provides potential investors with a concrete
description of your successes and qualifications. - Answer-
business plan
A _______________ combines the liability protection of a
corporation with the favorable tax treatment of a
partnership or sole proprietorship. - Answer-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. -
Answer-Limited Partnerships
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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. - Answer-
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. - Answer-True
If a corporation is eligible to be taxed as a partnership and
chooses to take this option, it is referred to as
___________________. - Answer-S Corporation
This serves as a reminder to owners, employees,
subcontractors, suppliers and customers of what the
company wants to do and become. - Answer-Mission
Statement
Identifying probable customers and attracting them to your
product or service is known as _______________. -
Answer-Marketing
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The Construction Services Commission shall be
comprised of ______ members. - Answer-nine
Which of the following is NOT required from an applicant
before being issued a license? - Answer-proof of
incorporation
Each contractor licensee under a license issued under this
chapter shall complete _____ hours of approved
continuing education. - Answer-6
Contractor licenses are issued on a _____ renewal cycle. -
Answer-2 year
If a license has been suspended, the applicant must
resolve any and all outstanding fines, citations and
judgements. - Answer-True
A contractor license number must be attached to which of
the following?
, 4|Page
1 permit applications
2 bids (when a license is required)
3 contracts
4 all of the above - Answer-all of the above
Can an independent contractor be a qualifier for a
business entity? - Answer-no
The division must be notified within _______ days, in
writing, that a qualifying officer has ceased association
with a company. - Answer-10
Which business organization is regulated the least by the
government? - Answer-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. - Answer-false
What business organization provides the most financial
protection for the owners? - Answer-Corporation
UTAH (UT) CONTRACTOR BUSINESS AND LAW
EXAMINATION COMPLETE VERIFIED QUESTIONS
AND DETAILED SOLUTIONS LATEST UPDATE THIS
YEAR JUST RELEASED
Sub Chapter "S" Corporations can retain their status no
matter how many stockholders they have. - Answer-false
Start-up and operating costs must be considered when
creating a ____________ . - Answer-financial plan
A _________ provides potential investors with a concrete
description of your successes and qualifications. - Answer-
business plan
A _______________ combines the liability protection of a
corporation with the favorable tax treatment of a
partnership or sole proprietorship. - Answer-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. -
Answer-Limited Partnerships
,2|Page
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. - Answer-
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. - Answer-True
If a corporation is eligible to be taxed as a partnership and
chooses to take this option, it is referred to as
___________________. - Answer-S Corporation
This serves as a reminder to owners, employees,
subcontractors, suppliers and customers of what the
company wants to do and become. - Answer-Mission
Statement
Identifying probable customers and attracting them to your
product or service is known as _______________. -
Answer-Marketing
,3|Page
The Construction Services Commission shall be
comprised of ______ members. - Answer-nine
Which of the following is NOT required from an applicant
before being issued a license? - Answer-proof of
incorporation
Each contractor licensee under a license issued under this
chapter shall complete _____ hours of approved
continuing education. - Answer-6
Contractor licenses are issued on a _____ renewal cycle. -
Answer-2 year
If a license has been suspended, the applicant must
resolve any and all outstanding fines, citations and
judgements. - Answer-True
A contractor license number must be attached to which of
the following?
, 4|Page
1 permit applications
2 bids (when a license is required)
3 contracts
4 all of the above - Answer-all of the above
Can an independent contractor be a qualifier for a
business entity? - Answer-no
The division must be notified within _______ days, in
writing, that a qualifying officer has ceased association
with a company. - Answer-10
Which business organization is regulated the least by the
government? - Answer-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. - Answer-false
What business organization provides the most financial
protection for the owners? - Answer-Corporation
