CONTRACTOR LICENSE EXAM 2026
QUESTIONS AND CORRECT ANSWERS A+
GENERAL CONTRACTOR STUDY GUIDE
AND EXAM PREP
Construction sites with _________ acre or more of disturbed soil must
obtain a General Permit NPDES Stormwater Discharge Permit. -
CORRECT ANSWER-one
Which of the following is NOT considered a satisfactory method of safety
training? - CORRECT ANSWER-Provide written handouts
Employers must report to OSHA within _______ any accident that results
in either a fatality or an in-patient hospitalization of 3 or more employees. -
CORRECT ANSWER-8 hours
If asbestos is present at a job site, you must submit a written Notice of
Intent __________ before starting work to the state and to the regional
EPA office. - CORRECT ANSWER-10 days
A landfill permit is required for any and all types of construction waste. -
CORRECT ANSWER-False
,Underground storage tanks are defined as any tank, or system connected to
the tank, that has at least _____% of its volume underground. - CORRECT
ANSWER-10%
"Minor repair and maintenance" is defined as any disruption of 6 square
feet or less of painted interior surface or 20 square feet or less of painted
exterior surface.
Close - CORRECT ANSWER-True
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. - CORRECT ANSWER-True
If a corporation is eligible to be taxed as a partnership and chooses to take
this option, it is referred to as ___________________. - CORRECT
ANSWER-"S" Corporation
Which business organization is regulated the least by the government? -
CORRECT 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. - CORRECT ANSWER-
False
What business organization provides the most financial protection for the
owners? - CORRECT ANSWER-Corporation
,Sole Proprietorships can issue and sell stock in the company to raise
capital. - CORRECT ANSWER-False
Can a corporation actually be listed as the sole owner of a property? -
CORRECT ANSWER-Yes
Limited Liability Companies have the ability to be passed down to family
members when an owner (member) dies. - CORRECT ANSWER-False
Sub Chapter "S" Corporations can retain their status no matter how many
stockholders they have. - CORRECT ANSWER-False
If you are naming the Sole Proprietorship something other than your real
name, you will need to register the trade name with the: - CORRECT
ANSWER-MD Department of Assessments and Taxation
A _____________ is when two or more contracting firms unite their
forces to construct a particular project.
Close - CORRECT ANSWER-Joint Venture
Close
What type of insurance will protect the contractor for losses due to a fire on
his construction project? - CORRECT ANSWER-All Risk Builders
insurance
, General liability insurance will protect the contractor against claims
brought by third parties who are not employed by the contractor. -
CORRECT ANSWER-true
Who pays for workers' compensation insurance? - CORRECT ANSWER-
the employer
A guarantee that a contractor will pay certain subcontractors, laborers, and
material suppliers associated with the project would be known as
a____________. - CORRECT ANSWER-payment bond
Any monies paid out by a surety company will need to be paid back. -
CORRECT ANSWER-True
Equipment in transit, on the premises or at the job site, would typically be
covered by: - CORRECT ANSWER-Equipment floater policy
A Performance Bond guarantees that the contractor will complete the
project according to the contract plans and terms. - CORRECT ANSWER-
true
The __________ requires that federal projects valued over $100,000
must produce a performance bond to guarantee completion of the project
under the terms of the contract. - CORRECT ANSWER-Miller Act
QUESTIONS AND CORRECT ANSWERS A+
GENERAL CONTRACTOR STUDY GUIDE
AND EXAM PREP
Construction sites with _________ acre or more of disturbed soil must
obtain a General Permit NPDES Stormwater Discharge Permit. -
CORRECT ANSWER-one
Which of the following is NOT considered a satisfactory method of safety
training? - CORRECT ANSWER-Provide written handouts
Employers must report to OSHA within _______ any accident that results
in either a fatality or an in-patient hospitalization of 3 or more employees. -
CORRECT ANSWER-8 hours
If asbestos is present at a job site, you must submit a written Notice of
Intent __________ before starting work to the state and to the regional
EPA office. - CORRECT ANSWER-10 days
A landfill permit is required for any and all types of construction waste. -
CORRECT ANSWER-False
,Underground storage tanks are defined as any tank, or system connected to
the tank, that has at least _____% of its volume underground. - CORRECT
ANSWER-10%
"Minor repair and maintenance" is defined as any disruption of 6 square
feet or less of painted interior surface or 20 square feet or less of painted
exterior surface.
Close - CORRECT ANSWER-True
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. - CORRECT ANSWER-True
If a corporation is eligible to be taxed as a partnership and chooses to take
this option, it is referred to as ___________________. - CORRECT
ANSWER-"S" Corporation
Which business organization is regulated the least by the government? -
CORRECT 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. - CORRECT ANSWER-
False
What business organization provides the most financial protection for the
owners? - CORRECT ANSWER-Corporation
,Sole Proprietorships can issue and sell stock in the company to raise
capital. - CORRECT ANSWER-False
Can a corporation actually be listed as the sole owner of a property? -
CORRECT ANSWER-Yes
Limited Liability Companies have the ability to be passed down to family
members when an owner (member) dies. - CORRECT ANSWER-False
Sub Chapter "S" Corporations can retain their status no matter how many
stockholders they have. - CORRECT ANSWER-False
If you are naming the Sole Proprietorship something other than your real
name, you will need to register the trade name with the: - CORRECT
ANSWER-MD Department of Assessments and Taxation
A _____________ is when two or more contracting firms unite their
forces to construct a particular project.
Close - CORRECT ANSWER-Joint Venture
Close
What type of insurance will protect the contractor for losses due to a fire on
his construction project? - CORRECT ANSWER-All Risk Builders
insurance
, General liability insurance will protect the contractor against claims
brought by third parties who are not employed by the contractor. -
CORRECT ANSWER-true
Who pays for workers' compensation insurance? - CORRECT ANSWER-
the employer
A guarantee that a contractor will pay certain subcontractors, laborers, and
material suppliers associated with the project would be known as
a____________. - CORRECT ANSWER-payment bond
Any monies paid out by a surety company will need to be paid back. -
CORRECT ANSWER-True
Equipment in transit, on the premises or at the job site, would typically be
covered by: - CORRECT ANSWER-Equipment floater policy
A Performance Bond guarantees that the contractor will complete the
project according to the contract plans and terms. - CORRECT ANSWER-
true
The __________ requires that federal projects valued over $100,000
must produce a performance bond to guarantee completion of the project
under the terms of the contract. - CORRECT ANSWER-Miller Act
