Michigan Builders Business And Law Exam | Practice
Questions And Answers 2026/2027 | Complete Questions And
Answers (Verified Answers) | Exam Prep | Comprehensive
Exam Guide 2026&2027
1. A contractor plans to perform residential construction work in Michigan for
compensation. Which state agency administers licensing for residential builders and
maintenance and alteration contractors?
A. Michigan Department of Treasury
B. Michigan Department of Licensing and Regulatory Affairs
C. Michigan Department of Transportation
D. Michigan Department of Insurance and Financial Services
Answer: B
Michigan Department of Licensing and Regulatory Affairs (LARA), through the Bureau of
Construction Codes, administers the residential builder and maintenance and alteration
contractor licensing program.
2. A contractor wants to obtain an individual Michigan Residential Builder license. Which
statement correctly describes the scope of that license?
A. It permits only roofing and siding work
B. It permits only commercial construction
C. It permits construction of complete residential structures and residential maintenance and
alteration work
D. It permits electrical contracting without an electrical license
Answer: C
An individual Residential Builder license permits the holder to build complete residential
structures and perform residential maintenance and alteration work within the scope
established by Michigan law.
3. Before applying for a Michigan Residential Builder or Maintenance and Alteration
Contractor license, an applicant generally must complete how many hours of approved
prelicensure education?
A. 30 hours
B. 40 hours
C. 50 hours
D. 60 hours
,Answer: D
Michigan requires applicants for these individual licenses to complete 60 hours of approved
prelicensure education before examination or application.
4. Which prelicensure subject is specifically included among the required Michigan
Residential Builder education areas?
A. Business management, estimating, and job costing
B. Advanced electrical engineering
C. Real estate appraisal
D. Commercial property taxation
Answer: A
Business management, estimating, and job costing are specifically identified as required
prelicensure subject matter.
5. An applicant has completed the required 60-hour course but has not yet passed the
required examination. What is the appropriate next step toward licensure?
A. Begin contracting immediately
B. Complete the licensing application and satisfy the examination and other requirements
C. Register only with the local building department
D. Obtain a salesperson license instead
Answer: B
Completion of education alone does not authorize contracting. The applicant must satisfy the
remaining licensing requirements, including the examination and application requirements.
6. Which organization conducts Michigan Bureau of Construction Codes licensing
examinations?
A. PSI Services LLC
B. Michigan Department of Treasury
C. International Code Council exclusively
D. Local building departments
Answer: A
Michigan has contracted with PSI Services LLC to administer Bureau of Construction Codes
examinations.
7. A contractor has an individual Residential Builder license and forms an LLC to conduct
the business. What additional licensing issue generally arises?
,A. The LLC automatically operates under the individual's license
B. The LLC must obtain its own company license
C. The LLC needs only a salesperson license
D. No license is needed if the owner remains licensed
Answer: B
An LLC is a separate legal person and generally must obtain its own residential builder or
maintenance and alteration contractor company license.
8. Who generally serves as the qualifying officer for a Michigan residential builder
company?
A. Any unlicensed employee
B. The local building inspector
C. An individual holding an active qualifying builder or M&A contractor license
D. The company's bookkeeper
Answer: C
A company must have an appropriately licensed individual serving as its qualifying officer.
The qualifying officer must maintain the required individual license.
9. A company qualifying officer allows the individual's license to expire while the company
license remains active on paper. What is the primary licensing concern?
A. Nothing changes until the next tax year
B. The company may be placed into suspension because it lacks an active qualifying officer
C. Only the salesperson license is affected
D. The company automatically converts to an M&A license
Answer: B
Michigan requires the qualifying officer to maintain an active individual license. Failure to do
so can place the company license into suspension.
10. Which address is acceptable as the required Michigan business address on an
individual builder license application?
A. A P.O. Box only
B. A private mailbox with no physical location
C. A physical Michigan business address
D. A customer's residence in another state
Answer: C
, The individual application requires a physical Michigan business address; a P.O. Box alone is
not sufficient.
11. A nonresident applicant is seeking a Michigan residential builder license. Which
additional document may be required?
A. Consent to Service of Process
B. Michigan driver's license only
C. County zoning certificate
D. Federal contractor permit
Answer: A
Michigan requires nonresident applicants to file a Consent to Service of Process as part of the
licensing process.
12. Which statement best describes a Michigan Maintenance and Alteration Contractor
license?
A. It automatically authorizes every construction trade
B. It is limited to the specific trade classifications listed on the license
C. It is identical to a Residential Builder license
D. It applies only to commercial buildings
Answer: B
An M&A license authorizes work in specific approved trades, and those trades are listed on
the license.
13. Which of the following is a recognized Michigan Maintenance and Alteration trade?
A. Residential appraisal
B. Carpentry
C. Real estate brokerage
D. Property management
Answer: B
Carpentry is one of the recognized Maintenance and Alteration contractor trades in Michigan.
14. A contractor's M&A license lists roofing but not masonry. The contractor is asked to
perform masonry work as part of a remodeling project. What should the contractor do?
A. Perform the masonry because roofing is a related trade
B. Perform it if the customer gives written permission
Questions And Answers 2026/2027 | Complete Questions And
Answers (Verified Answers) | Exam Prep | Comprehensive
Exam Guide 2026&2027
1. A contractor plans to perform residential construction work in Michigan for
compensation. Which state agency administers licensing for residential builders and
maintenance and alteration contractors?
A. Michigan Department of Treasury
B. Michigan Department of Licensing and Regulatory Affairs
C. Michigan Department of Transportation
D. Michigan Department of Insurance and Financial Services
Answer: B
Michigan Department of Licensing and Regulatory Affairs (LARA), through the Bureau of
Construction Codes, administers the residential builder and maintenance and alteration
contractor licensing program.
2. A contractor wants to obtain an individual Michigan Residential Builder license. Which
statement correctly describes the scope of that license?
A. It permits only roofing and siding work
B. It permits only commercial construction
C. It permits construction of complete residential structures and residential maintenance and
alteration work
D. It permits electrical contracting without an electrical license
Answer: C
An individual Residential Builder license permits the holder to build complete residential
structures and perform residential maintenance and alteration work within the scope
established by Michigan law.
3. Before applying for a Michigan Residential Builder or Maintenance and Alteration
Contractor license, an applicant generally must complete how many hours of approved
prelicensure education?
A. 30 hours
B. 40 hours
C. 50 hours
D. 60 hours
,Answer: D
Michigan requires applicants for these individual licenses to complete 60 hours of approved
prelicensure education before examination or application.
4. Which prelicensure subject is specifically included among the required Michigan
Residential Builder education areas?
A. Business management, estimating, and job costing
B. Advanced electrical engineering
C. Real estate appraisal
D. Commercial property taxation
Answer: A
Business management, estimating, and job costing are specifically identified as required
prelicensure subject matter.
5. An applicant has completed the required 60-hour course but has not yet passed the
required examination. What is the appropriate next step toward licensure?
A. Begin contracting immediately
B. Complete the licensing application and satisfy the examination and other requirements
C. Register only with the local building department
D. Obtain a salesperson license instead
Answer: B
Completion of education alone does not authorize contracting. The applicant must satisfy the
remaining licensing requirements, including the examination and application requirements.
6. Which organization conducts Michigan Bureau of Construction Codes licensing
examinations?
A. PSI Services LLC
B. Michigan Department of Treasury
C. International Code Council exclusively
D. Local building departments
Answer: A
Michigan has contracted with PSI Services LLC to administer Bureau of Construction Codes
examinations.
7. A contractor has an individual Residential Builder license and forms an LLC to conduct
the business. What additional licensing issue generally arises?
,A. The LLC automatically operates under the individual's license
B. The LLC must obtain its own company license
C. The LLC needs only a salesperson license
D. No license is needed if the owner remains licensed
Answer: B
An LLC is a separate legal person and generally must obtain its own residential builder or
maintenance and alteration contractor company license.
8. Who generally serves as the qualifying officer for a Michigan residential builder
company?
A. Any unlicensed employee
B. The local building inspector
C. An individual holding an active qualifying builder or M&A contractor license
D. The company's bookkeeper
Answer: C
A company must have an appropriately licensed individual serving as its qualifying officer.
The qualifying officer must maintain the required individual license.
9. A company qualifying officer allows the individual's license to expire while the company
license remains active on paper. What is the primary licensing concern?
A. Nothing changes until the next tax year
B. The company may be placed into suspension because it lacks an active qualifying officer
C. Only the salesperson license is affected
D. The company automatically converts to an M&A license
Answer: B
Michigan requires the qualifying officer to maintain an active individual license. Failure to do
so can place the company license into suspension.
10. Which address is acceptable as the required Michigan business address on an
individual builder license application?
A. A P.O. Box only
B. A private mailbox with no physical location
C. A physical Michigan business address
D. A customer's residence in another state
Answer: C
, The individual application requires a physical Michigan business address; a P.O. Box alone is
not sufficient.
11. A nonresident applicant is seeking a Michigan residential builder license. Which
additional document may be required?
A. Consent to Service of Process
B. Michigan driver's license only
C. County zoning certificate
D. Federal contractor permit
Answer: A
Michigan requires nonresident applicants to file a Consent to Service of Process as part of the
licensing process.
12. Which statement best describes a Michigan Maintenance and Alteration Contractor
license?
A. It automatically authorizes every construction trade
B. It is limited to the specific trade classifications listed on the license
C. It is identical to a Residential Builder license
D. It applies only to commercial buildings
Answer: B
An M&A license authorizes work in specific approved trades, and those trades are listed on
the license.
13. Which of the following is a recognized Michigan Maintenance and Alteration trade?
A. Residential appraisal
B. Carpentry
C. Real estate brokerage
D. Property management
Answer: B
Carpentry is one of the recognized Maintenance and Alteration contractor trades in Michigan.
14. A contractor's M&A license lists roofing but not masonry. The contractor is asked to
perform masonry work as part of a remodeling project. What should the contractor do?
A. Perform the masonry because roofing is a related trade
B. Perform it if the customer gives written permission
