Cslb Contractor License Law Updated Actual Exam Questions Correct Answers

CSLB CONTRACTOR LICENSE LAW UPDATED ACTUAL EXAM QUESTIONS CORRECT
ANSWERS GRADED A PLUS




Question:
Which business entity allows its owners to report income as personal income while enjoying limited
liability?

Answer:
LLC



Question:
What is the purpose of a mechanics lien

Answer:
To ensure payment for labor or materials used in a project.



Question:
What financial statement summarizes a company's assets, liabilities, and equity.

Answer:
Balance sheet



Question:
What is the penalty for failing to secure workers' compensation insurance for employees?

Answer:
Stop order to halt all work, fines up to $100,000, and misdemeanor criminal charges.



Question:

, Under California law, how long does a homeowner have to cancel a home improvement contract if
they are over 65 years old?

Answer:
5 "business" days without penalty or obligation.



Question:
How often must a contractor renew their license in California?

Answer:
Every 2 years.



Question:
What type of insurance is mandatory for all limited liability companies (LLCs) in California?

Answer:
Commercial general liability insurance valued at $1 million dollars.



Question:
What is the monetary fine for an unlicensed contractor acting as a contractor in California?

Answer:
$200 and up to $15,000



Question:
What must a contractor disclose to a homeowner if they do not carry commercial general liability
insurance?

Answer:
They must notify the homeowner in writing.



Question: