CSLB Contractors License Law and Business Exam
Practice (2025) Questions and Answers 100%
Verified
Question:
What is required of a home improvement salesperson (HIS) before they begin working?
Answer:
Registration and issuance of a registration number by CSLB and be associated by a license
contractor.
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.
Practice (2025) Questions and Answers 100%
Verified
Question:
What is required of a home improvement salesperson (HIS) before they begin working?
Answer:
Registration and issuance of a registration number by CSLB and be associated by a license
contractor.
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.
