NEVADA CONTRACTOR GENERAL BUSINESS AND LAW (CMS)
ACTUAL EXAM 200 EXAM QUESTIONS AND STUDY GUIDE
WITH DETAILED RATIONALES
1. The Nevada State Contractors Board (NSCB) is established under
which Nevada statute?
A) NRS 108
B) NRS 624
C) NRS 617
D) NRS 631
Correct Answer: B) NRS 624
Rationale: NRS Chapter 624 (Contractors) is the primary statute that
creates the Nevada State Contractors Board and defines its powers,
including licensing, discipline, and enforcement. This chapter
establishes the framework for contractor regulation in the state.
2. How many members serve on the Nevada State Contractors Board?
A) 5 members
B) 7 members
C) 9 members
D) 11 members
Correct Answer: B) 7 members
Rationale: NRS 624.030 specifies that the seven Board members consist
of four licensed contractors and three public members, all appointed by
the Governor.
3. Who appoints the public members of the Nevada State Contractors
Board?
,A) The Nevada Legislature
B) The Governor
C) The NSCB Chairman
D) The Nevada Secretary of State
Correct Answer: B) The Governor
Rationale: The Governor appoints all seven members of the Nevada
State Contractors Board, including the four licensed contractors and
three public members.
4. What is the minimum experience requirement for a non-restricted
contractor license in Nevada?
A) 1 year
B) 2 years
C) 3 years
D) 4 years
Correct Answer: D) 4 years
Rationale: The trade qualifier must have a minimum of four years'
relevant work experience within the past 15 years in the trade being
applied for. This experience must be verified through Certification of
Work Experience forms completed by former employers or past
customers.
5. What is the monetary limit for a restricted contractor license in
Nevada?
A) $1,000
B) $5,000
C) $7,000
D) $10,000
,Correct Answer: C) $7,000
Rationale: A restricted contractor license in Nevada allows work up to
$7,000, including labor and materials. The Board may determine a
greater amount to be appropriate through regulation.
6. Which license classification is required for a contractor performing
plumbing and heating work?
A) C-1 – Plumbing and Heating Contractor
B) C-2 – Electrical Contractor
C) B-1 – General Building
D) A-1 – Engineering
Correct Answer: A) C-1 – Plumbing and Heating Contractor
Rationale: The C-1 classification is specifically designated for plumbing
and heating contractors. Class C licenses are for trade contractors who
perform specific specialized trade work.
7. What is the Class B-2 license classification for?
A) General engineering
B) General building
C) Residential and small commercial (1-2 family dwellings)
D) Specialty trades
Correct Answer: C) Residential and small commercial (1-2 family
dwellings)
Rationale: The B-2 classification is for Residential and Small Commercial
contractors, typically limited to 1-2 family residential work.
8. What is the maximum monetary limit for a contractor with an
"unlimited" license?
, A) $1 million
B) $5 million
C) $10 million
D) No limit
Correct Answer: C) $10 million
Rationale: A contractor can be granted an "unlimited" license if they can
demonstrate the ability to financially handle a project in excess of $10
million.
9. Which business structure provides the least personal liability
protection?
A) Sole Proprietorship
B) Corporation
C) LLC
D) Limited Partnership
Correct Answer: A) Sole Proprietorship
Rationale: A sole proprietorship does not separate business and
personal liability, exposing the owner's personal assets to business
debts and lawsuits.
10. Which business structure offers the advantage of limited liability
to its owners while providing pass-through taxation?
A) Sole Proprietorship
B) Limited Liability Company (LLC)
C) C Corporation
D) General Partnership
Correct Answer: B) Limited Liability Company (LLC)
ACTUAL EXAM 200 EXAM QUESTIONS AND STUDY GUIDE
WITH DETAILED RATIONALES
1. The Nevada State Contractors Board (NSCB) is established under
which Nevada statute?
A) NRS 108
B) NRS 624
C) NRS 617
D) NRS 631
Correct Answer: B) NRS 624
Rationale: NRS Chapter 624 (Contractors) is the primary statute that
creates the Nevada State Contractors Board and defines its powers,
including licensing, discipline, and enforcement. This chapter
establishes the framework for contractor regulation in the state.
2. How many members serve on the Nevada State Contractors Board?
A) 5 members
B) 7 members
C) 9 members
D) 11 members
Correct Answer: B) 7 members
Rationale: NRS 624.030 specifies that the seven Board members consist
of four licensed contractors and three public members, all appointed by
the Governor.
3. Who appoints the public members of the Nevada State Contractors
Board?
,A) The Nevada Legislature
B) The Governor
C) The NSCB Chairman
D) The Nevada Secretary of State
Correct Answer: B) The Governor
Rationale: The Governor appoints all seven members of the Nevada
State Contractors Board, including the four licensed contractors and
three public members.
4. What is the minimum experience requirement for a non-restricted
contractor license in Nevada?
A) 1 year
B) 2 years
C) 3 years
D) 4 years
Correct Answer: D) 4 years
Rationale: The trade qualifier must have a minimum of four years'
relevant work experience within the past 15 years in the trade being
applied for. This experience must be verified through Certification of
Work Experience forms completed by former employers or past
customers.
5. What is the monetary limit for a restricted contractor license in
Nevada?
A) $1,000
B) $5,000
C) $7,000
D) $10,000
,Correct Answer: C) $7,000
Rationale: A restricted contractor license in Nevada allows work up to
$7,000, including labor and materials. The Board may determine a
greater amount to be appropriate through regulation.
6. Which license classification is required for a contractor performing
plumbing and heating work?
A) C-1 – Plumbing and Heating Contractor
B) C-2 – Electrical Contractor
C) B-1 – General Building
D) A-1 – Engineering
Correct Answer: A) C-1 – Plumbing and Heating Contractor
Rationale: The C-1 classification is specifically designated for plumbing
and heating contractors. Class C licenses are for trade contractors who
perform specific specialized trade work.
7. What is the Class B-2 license classification for?
A) General engineering
B) General building
C) Residential and small commercial (1-2 family dwellings)
D) Specialty trades
Correct Answer: C) Residential and small commercial (1-2 family
dwellings)
Rationale: The B-2 classification is for Residential and Small Commercial
contractors, typically limited to 1-2 family residential work.
8. What is the maximum monetary limit for a contractor with an
"unlimited" license?
, A) $1 million
B) $5 million
C) $10 million
D) No limit
Correct Answer: C) $10 million
Rationale: A contractor can be granted an "unlimited" license if they can
demonstrate the ability to financially handle a project in excess of $10
million.
9. Which business structure provides the least personal liability
protection?
A) Sole Proprietorship
B) Corporation
C) LLC
D) Limited Partnership
Correct Answer: A) Sole Proprietorship
Rationale: A sole proprietorship does not separate business and
personal liability, exposing the owner's personal assets to business
debts and lawsuits.
10. Which business structure offers the advantage of limited liability
to its owners while providing pass-through taxation?
A) Sole Proprietorship
B) Limited Liability Company (LLC)
C) C Corporation
D) General Partnership
Correct Answer: B) Limited Liability Company (LLC)
