CSLB Law and Business 2025 Questions and
Answers 100% Verified
Question:
What is the minimum bond amount required for a contractor license in California?
Answer:
$25.000
Question:
What is the penalty for acting as a contractor without a license in California?
Answer:
it is a MISDEMEANOR
Question:
What does the CSLB issue to a contractor for a minor violation as a warning?
Answer:
Advisory Notice
Question:
How long are citations against licensed contractors disclosed to the public?
Answer:
5 years
,Question:
What is the maximum allowable down payment for a home improvement contract in
California?
Answer:
$1,000 or 10% of the contract price, Whichever is less
Question:
Home improvements contracts must include which of the following?
Answer:
•description of materials •start and completion dates •permissible delays
Question:
Which business structures provides liability protection similar to a corporation but has
different tax treatment?
Answer:
Limited Liability Company (LLC)
Question:
What type of bond guarantees both job completion and payment of all labor and materials?
Answer:
Contract Bond
, Question:
What is the minimum liability insurance required for a limited liability company (LLC) with 5 or
fewer personnel?
Answer:
$1 million
Question:
What is the purpose of a disciplinary bond for a contractor?
Answer:
To ensure compliance with licensing rules following disciplinary action
Question:
What agency is responsible for licensing and regulating contractors in California?
Answer:
Contractors State Licensing Board (CSLB)
Question:
What is the main purpose of the contractors state license board? (CSLB)
Answer:
To protect consumers by regulating the construction industry
Answers 100% Verified
Question:
What is the minimum bond amount required for a contractor license in California?
Answer:
$25.000
Question:
What is the penalty for acting as a contractor without a license in California?
Answer:
it is a MISDEMEANOR
Question:
What does the CSLB issue to a contractor for a minor violation as a warning?
Answer:
Advisory Notice
Question:
How long are citations against licensed contractors disclosed to the public?
Answer:
5 years
,Question:
What is the maximum allowable down payment for a home improvement contract in
California?
Answer:
$1,000 or 10% of the contract price, Whichever is less
Question:
Home improvements contracts must include which of the following?
Answer:
•description of materials •start and completion dates •permissible delays
Question:
Which business structures provides liability protection similar to a corporation but has
different tax treatment?
Answer:
Limited Liability Company (LLC)
Question:
What type of bond guarantees both job completion and payment of all labor and materials?
Answer:
Contract Bond
, Question:
What is the minimum liability insurance required for a limited liability company (LLC) with 5 or
fewer personnel?
Answer:
$1 million
Question:
What is the purpose of a disciplinary bond for a contractor?
Answer:
To ensure compliance with licensing rules following disciplinary action
Question:
What agency is responsible for licensing and regulating contractors in California?
Answer:
Contractors State Licensing Board (CSLB)
Question:
What is the main purpose of the contractors state license board? (CSLB)
Answer:
To protect consumers by regulating the construction industry
