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Nevada Business and Law (CMS) Exam – 100 Practice Questions
Section 1: NSCB Licensing & Regulation (Q1–20)
1. Which Nevada agency regulates and licenses contractors?
A) Department of Labor
B) Nevada State Contractors Board (NSCB)
C) Secretary of State
D) Department of Transportation
Answer: B — The NSCB oversees contractor licensing and regulation under NRS Chapter 624
.
2. How often must Nevada contractors renew their licenses?
A) Annually
B) Every 2 years
C) Every 3 years
D) Every 5 years
Answer: B — Nevada contractor licenses are issued for two years and renewed biennially .
3. What is the minimum experience requirement for a qualifying individual?
A) 1 year
B) 2 years
C) 4 years
D) 6 years
Answer: C — The qualifying party must have at least 4 years of experience within the last 10
years .
4. How many members serve on the Nevada State Contractors Board?
A) 5
B) 7
C) 9
D) 11
Answer: B — The Board consists of 7 members: 4 licensed contractors and 3 public members
.
5. What is the minimum age to obtain a contractor's license in Nevada?
A) 16
B) 18
C) 21
D) 25
Answer: B — Applicants must be at least 18 years old .
6. Which examination is required in addition to any trade exam?
A) OSHA exam
, 2
B) Business and Law (CMS) exam
C) Building inspector exam
D) Sales tax exam
Answer: B — All applicants must pass the Business and Law/CMS examination .
7. Is the Nevada Business and Law exam open book or closed book?
A) Open book
B) Closed book
C) Oral only
D) No reference allowed
Answer: A — The CMS exam is open book, allowing the Nevada Construction Business and
Law Manual .
8. How many attempts are allowed to pass the exam?
A) 1
B) 2
C) 3
D) Unlimited
Answer: C — You are allowed three attempts. After the third failure, the application
becomes void .
9. What happens if an exam is failed on the third attempt?
A) Automatic temporary license
B) Application becomes void; must reapply
C) Permanent disqualification
D) Immediate retake allowed
Answer: B — The application becomes void, and you must wait 30 days before reapplying .
10. Within how many days must a contractor notify NSCB of an address change?
A) 10 days
B) 15 days
C) 30 days
D) 60 days
Answer: C — Contractors must notify the NSCB in writing within 30 days of any address
change .
11. What is the minimum surety bond amount for a Nevada contractor?
A) $1,000
B) $5,000
C) $10,000
D) $25,000
Answer: A — The minimum bond is $1,000, though amounts may be higher based on
classification and monetary limits .
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12. Who is the "qualifying party" for a contractor license?
A) Any employee
B) The person with experience and exam qualifications who supports the license
C) The insurance agent
D) The lender
Answer: B — The qualifying individual's experience and exam passage qualify the contractor
license .
13. What is the primary license classification for General Building?
A) Class A
B) Class B
C) Class C
D) Class D
Answer: B — Class B is General Building. Class A is General Engineering, and Class C is
Specialty .
14. What is the B-2 classification for?
A) General engineering
B) Residential and small commercial
C) Specialty trades
D) Industrial only
Answer: B — The B-2 classification covers residential and small commercial (1-2 family
dwellings) .
15. What does the C-2 classification cover?
A) Plumbing
B) Electrical
C) Roofing
D) Concrete
Answer: B — C-2 is Electrical Contracting .
16. What is the maximum fine for certain NRS 624 violations?
A) $10,000
B) $25,000
C) $50,000
D) $100,000
Answer: C — NRS 624.303 allows fines up to $50,000 for certain violations, including
unlicensed contracting .
17. A contractor's license expires January 31. They continue working February 1 without
renewal. What is their legal status?
A) Permitted with 60-day grace
B) Operating legally if no new contracts
Nevada Business and Law (CMS) Exam – 100 Practice Questions
Section 1: NSCB Licensing & Regulation (Q1–20)
1. Which Nevada agency regulates and licenses contractors?
A) Department of Labor
B) Nevada State Contractors Board (NSCB)
C) Secretary of State
D) Department of Transportation
Answer: B — The NSCB oversees contractor licensing and regulation under NRS Chapter 624
.
2. How often must Nevada contractors renew their licenses?
A) Annually
B) Every 2 years
C) Every 3 years
D) Every 5 years
Answer: B — Nevada contractor licenses are issued for two years and renewed biennially .
3. What is the minimum experience requirement for a qualifying individual?
A) 1 year
B) 2 years
C) 4 years
D) 6 years
Answer: C — The qualifying party must have at least 4 years of experience within the last 10
years .
4. How many members serve on the Nevada State Contractors Board?
A) 5
B) 7
C) 9
D) 11
Answer: B — The Board consists of 7 members: 4 licensed contractors and 3 public members
.
5. What is the minimum age to obtain a contractor's license in Nevada?
A) 16
B) 18
C) 21
D) 25
Answer: B — Applicants must be at least 18 years old .
6. Which examination is required in addition to any trade exam?
A) OSHA exam
, 2
B) Business and Law (CMS) exam
C) Building inspector exam
D) Sales tax exam
Answer: B — All applicants must pass the Business and Law/CMS examination .
7. Is the Nevada Business and Law exam open book or closed book?
A) Open book
B) Closed book
C) Oral only
D) No reference allowed
Answer: A — The CMS exam is open book, allowing the Nevada Construction Business and
Law Manual .
8. How many attempts are allowed to pass the exam?
A) 1
B) 2
C) 3
D) Unlimited
Answer: C — You are allowed three attempts. After the third failure, the application
becomes void .
9. What happens if an exam is failed on the third attempt?
A) Automatic temporary license
B) Application becomes void; must reapply
C) Permanent disqualification
D) Immediate retake allowed
Answer: B — The application becomes void, and you must wait 30 days before reapplying .
10. Within how many days must a contractor notify NSCB of an address change?
A) 10 days
B) 15 days
C) 30 days
D) 60 days
Answer: C — Contractors must notify the NSCB in writing within 30 days of any address
change .
11. What is the minimum surety bond amount for a Nevada contractor?
A) $1,000
B) $5,000
C) $10,000
D) $25,000
Answer: A — The minimum bond is $1,000, though amounts may be higher based on
classification and monetary limits .
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12. Who is the "qualifying party" for a contractor license?
A) Any employee
B) The person with experience and exam qualifications who supports the license
C) The insurance agent
D) The lender
Answer: B — The qualifying individual's experience and exam passage qualify the contractor
license .
13. What is the primary license classification for General Building?
A) Class A
B) Class B
C) Class C
D) Class D
Answer: B — Class B is General Building. Class A is General Engineering, and Class C is
Specialty .
14. What is the B-2 classification for?
A) General engineering
B) Residential and small commercial
C) Specialty trades
D) Industrial only
Answer: B — The B-2 classification covers residential and small commercial (1-2 family
dwellings) .
15. What does the C-2 classification cover?
A) Plumbing
B) Electrical
C) Roofing
D) Concrete
Answer: B — C-2 is Electrical Contracting .
16. What is the maximum fine for certain NRS 624 violations?
A) $10,000
B) $25,000
C) $50,000
D) $100,000
Answer: C — NRS 624.303 allows fines up to $50,000 for certain violations, including
unlicensed contracting .
17. A contractor's license expires January 31. They continue working February 1 without
renewal. What is their legal status?
A) Permitted with 60-day grace
B) Operating legally if no new contracts
