MN Contractors Prep Exam With Actual Complete Answers 2024.
Who applies for a license?
a)The owner of a sole proprietorship
b)At least one general partner or managing employee of a partnership
c)A Chief Executive Officer, responsible managing employee or qualifying person in a corporation
d)All of the above - Answer D) All of the above
A person can be a qualifying person for two corporations if at least 25% of each corporation has common
ownership, or the second corporation is a subsidiary of the parent corporation with at least 25% owned by the parent.
a) True
b) False - Answer a) True
A person who fails to apply for renewal by March 31st is considered licensed for 30 days, or until the new
license is issued by the Commissioner.
a) True
b) False - Answer b) False
Who is responsible for determining who is qualified to be licensed by the State of Minnesota?
a) Department of Labor and Industry
b) Department of Regulatory Affairs
c) Builders Bureau
d) The Board - Answer a) Department of Labor and Industry Anyone in the business of building residential real estate, or who contracts or offers to improve residential real estate, must be licensed, unless yearly gross receipts are less than $15,000 and they have
received a Certificate of Exemption from the Department of Commerce.
a) True
b) False - Answer a) True
The licensing process requires each company to designate one individual who will serve as a ____________ , regardless of whether the licensee is an individual proprietorship, partnership or corporation.
a) managing partner
b) qualifying person
c) project manager
d) CEO - Answer b) qualifying person
The maximum payment per claim paid out of the Contractor Recovery Fund is:
a) $15,000
b) $20,000
c) $75,000
d) $60,000 - Answer c) $75,000
The maximum payment per licensee out of the Contractor Recovery Fund (not the accelerated process) is __________ .
a) $10,000
b) $45,000
c) $150,000
Who applies for a license?
a)The owner of a sole proprietorship
b)At least one general partner or managing employee of a partnership
c)A Chief Executive Officer, responsible managing employee or qualifying person in a corporation
d)All of the above - Answer D) All of the above
A person can be a qualifying person for two corporations if at least 25% of each corporation has common
ownership, or the second corporation is a subsidiary of the parent corporation with at least 25% owned by the parent.
a) True
b) False - Answer a) True
A person who fails to apply for renewal by March 31st is considered licensed for 30 days, or until the new
license is issued by the Commissioner.
a) True
b) False - Answer b) False
Who is responsible for determining who is qualified to be licensed by the State of Minnesota?
a) Department of Labor and Industry
b) Department of Regulatory Affairs
c) Builders Bureau
d) The Board - Answer a) Department of Labor and Industry Anyone in the business of building residential real estate, or who contracts or offers to improve residential real estate, must be licensed, unless yearly gross receipts are less than $15,000 and they have
received a Certificate of Exemption from the Department of Commerce.
a) True
b) False - Answer a) True
The licensing process requires each company to designate one individual who will serve as a ____________ , regardless of whether the licensee is an individual proprietorship, partnership or corporation.
a) managing partner
b) qualifying person
c) project manager
d) CEO - Answer b) qualifying person
The maximum payment per claim paid out of the Contractor Recovery Fund is:
a) $15,000
b) $20,000
c) $75,000
d) $60,000 - Answer c) $75,000
The maximum payment per licensee out of the Contractor Recovery Fund (not the accelerated process) is __________ .
a) $10,000
b) $45,000
c) $150,000
