Michigan Contractor Licensing and Business Exam Prep
Michigan Contractor Licensing and Business Exam Prep
Study online at https://quizlet.com/_hcwvat
1. Residential Builder Li- Required license in Michigan to construct, alter, repair, or demolish
cense residential or combination structures.
2. Maintenance & Alteration License for contractors specializing in specific trades, like roofing or
Contractor License carpentry, rather than full home construction.
3. LARA (Licensing and Regu- Michigan department that oversees contractor licensing, enforce-
latory Affairs) ment, and education.
4. Pre-Licensure Education A 60-hour course required for first-time residential builder applicants
in Michigan.
5. Sole Proprietorship A business owned by one individual, with no legal separation be-
tween owner and business.
6. Partnership A legal arrangement where two or more people share ownership and
profits of a business.
7. Corporation A separate legal entity that provides liability protection to its owners
(shareholders).
8. Limited Liability Company A hybrid structure combining limited liability of a corporation with the
(LLC) tax benefits of a partnership.
9. Employer Identification Federal tax ID number used to identify a business.
Number (EIN)
10. Contract A legally binding agreement between two or more parties outlining
duties and obligations.
11. Implied Contract An agreement formed by actions or conduct, rather than written or
spoken words.
12. Breach of Contract Failure to fulfill terms of a contract without legal excuse.
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, Michigan Contractor Licensing and Business Exam Prep
Michigan Contractor Licensing and Business Exam Prep
Study online at https://quizlet.com/_hcwvat
13. Mechanic's Lien Legal claim against a property for unpaid labor or materials used to
improve it.
14. Right to Cure Contractor's right to fix defective work before legal action is taken.
15. Scope of Work Detailed outline of tasks, responsibilities, and deliverables in a con-
struction project.
16. Change Order A written amendment to the original contract that changes scope,
cost, or timeline.
17. Critical Path Method Project management technique that identifies the longest chain of
(CPM) dependent tasks.
18. Direct Costs Costs directly tied to a project, such as labor and materials.
19. Overhead Costs Indirect expenses such as office rent, insurance, and utilities.
20. Unemployment Insurance State-mandated insurance that provides income to employees who
lose jobs through no fault of their own.
21. Workers' Compensation Insurance that covers medical costs and wages for employees injured
on the job.
22. Fair Labor Standards Act Federal law that sets minimum wage, overtime, and child labor reg-
(FLSA) ulations.
23. At-Will Employment Employment that can be terminated by either party at any time
without cause.
24. MIOSHA Michigan Occupational Safety and Health Administration; enforces
workplace safety laws in Michigan.
25. OSHA Federal agency regulating workplace safety and health nationwide.
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Michigan Contractor Licensing and Business Exam Prep
Study online at https://quizlet.com/_hcwvat
1. Residential Builder Li- Required license in Michigan to construct, alter, repair, or demolish
cense residential or combination structures.
2. Maintenance & Alteration License for contractors specializing in specific trades, like roofing or
Contractor License carpentry, rather than full home construction.
3. LARA (Licensing and Regu- Michigan department that oversees contractor licensing, enforce-
latory Affairs) ment, and education.
4. Pre-Licensure Education A 60-hour course required for first-time residential builder applicants
in Michigan.
5. Sole Proprietorship A business owned by one individual, with no legal separation be-
tween owner and business.
6. Partnership A legal arrangement where two or more people share ownership and
profits of a business.
7. Corporation A separate legal entity that provides liability protection to its owners
(shareholders).
8. Limited Liability Company A hybrid structure combining limited liability of a corporation with the
(LLC) tax benefits of a partnership.
9. Employer Identification Federal tax ID number used to identify a business.
Number (EIN)
10. Contract A legally binding agreement between two or more parties outlining
duties and obligations.
11. Implied Contract An agreement formed by actions or conduct, rather than written or
spoken words.
12. Breach of Contract Failure to fulfill terms of a contract without legal excuse.
1/6
, Michigan Contractor Licensing and Business Exam Prep
Michigan Contractor Licensing and Business Exam Prep
Study online at https://quizlet.com/_hcwvat
13. Mechanic's Lien Legal claim against a property for unpaid labor or materials used to
improve it.
14. Right to Cure Contractor's right to fix defective work before legal action is taken.
15. Scope of Work Detailed outline of tasks, responsibilities, and deliverables in a con-
struction project.
16. Change Order A written amendment to the original contract that changes scope,
cost, or timeline.
17. Critical Path Method Project management technique that identifies the longest chain of
(CPM) dependent tasks.
18. Direct Costs Costs directly tied to a project, such as labor and materials.
19. Overhead Costs Indirect expenses such as office rent, insurance, and utilities.
20. Unemployment Insurance State-mandated insurance that provides income to employees who
lose jobs through no fault of their own.
21. Workers' Compensation Insurance that covers medical costs and wages for employees injured
on the job.
22. Fair Labor Standards Act Federal law that sets minimum wage, overtime, and child labor reg-
(FLSA) ulations.
23. At-Will Employment Employment that can be terminated by either party at any time
without cause.
24. MIOSHA Michigan Occupational Safety and Health Administration; enforces
workplace safety laws in Michigan.
25. OSHA Federal agency regulating workplace safety and health nationwide.
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