Utah General Contractor's Course -
Business and Law Exam Prep QUESTIONS &
SOLUTIONS(RATED A)
Which business organization is regulated the least by the government? - ANSWER Sole Proprietorship
In a general partnership, each partner is liable for the debt of the company up to the percentage of the
company they own. - ANSWER false
What business organization provides the most financial protection for the owners? - ANSWER
Corporation
Sole Proprietorships can issue and sell stock in the company to raise capital. - ANSWER false
Can a corporation actually be listed as the sole owner of a property? - ANSWER yes
Limited Liability Companies have the ability to be passed down to family members when an owner
(member) dies. - ANSWER false
Sub Chapter "S" Corporations can retain their status no matter how many stockholders they have. -
ANSWER false
Start-up and operating costs must be considered when creating a ____________ . - ANSWER financial
plan
A _________ provides potential investors with a concrete description of your successes and
qualifications. - ANSWER business plan
,A _______________ combines the liability protection of a corporation with the favorable tax treatment
of a partnership or sole proprietorship. - ANSWER LLC
_____________ have a partner who contributes funds and or property to the business, but does not
provide any services or have any say in the day to day business. - ANSWER Limited Partnerships
It is a good idea to research business names through the ___________ website to avoid creating a
business name that is too similar to another registered name. - ANSWER Secretary of State
Can an independent contractor be a qualifier for a business entity? - ANSWER no
The division must be notified within _______ days, in writing, that a qualifying officer has ceased
association with a company. - ANSWER 10
If a qualifying person leaves a company, the license will remain active for ______ . - ANSWER 60 days
A home owner who builds three residential structures in a five year period is still exempt from licensing
requirements. - ANSWER True
A person engaged in the renovation of a commercial building, who works without compensation, is
exempt from licensure requirements. - ANSWER False
If the total value of a project is greater than $_______, the builder shall file with the division a one-time
affirmation. - ANSWER $1,000
Does a contractor working on a project valued at $2,500, who has filed a one-time affirmation with the
division, have to show proof of public liability insurance? - ANSWER Yes
Who is responsible for the investigation of persons and activities in violation of the Utah Construction
Trades Licensing Act? - ANSWER the Division of Occupational/Professional Licensing
, Which of the following is not considered "unlawful"? - ANSWER deliberate departure from plans or
specifications
Which of the following is considered "unprofessional conduct"?
1 Failing to establish, maintain, or demonstrate financial responsibility while licensed as a contractor
2 Allowing one's license to be used by another
3 Failure to complete a project without the consent of the owner
4 both a and c - ANSWER 4 both a and c
A contractor who submits a bid for a contract outside his/her license classification may have their license
immediately suspended. - ANSWER True
If within ______ calendar days from the service of the citation, the person to whom the citation was
issued fails to request a hearing to contest the citation, the citation becomes the final order. - ANSWER
20
A person who has violated the licensing laws of Utah one time could be fined up to $_______ . -
ANSWER $1,000
Third time offenders can be fined up to $______ for each day of continued offense. - ANSWER $2,000
Which of the following is qualified to perform construction for highways, water supply, flood control and
bridges? - ANSWER General Engineering Contractor
A Residential and Small Commercial Non-Structural Remodeler cannot perform work on a project valued
at more than $________ . - ANSWER $50,000
A Residential and Small Commercial contractor may not perform construction on buildings greater than
_________ square feet. - ANSWER 20,000
Does a lead removal company need to have a contractor's license? - ANSWER No
Business and Law Exam Prep QUESTIONS &
SOLUTIONS(RATED A)
Which business organization is regulated the least by the government? - ANSWER Sole Proprietorship
In a general partnership, each partner is liable for the debt of the company up to the percentage of the
company they own. - ANSWER false
What business organization provides the most financial protection for the owners? - ANSWER
Corporation
Sole Proprietorships can issue and sell stock in the company to raise capital. - ANSWER false
Can a corporation actually be listed as the sole owner of a property? - ANSWER yes
Limited Liability Companies have the ability to be passed down to family members when an owner
(member) dies. - ANSWER false
Sub Chapter "S" Corporations can retain their status no matter how many stockholders they have. -
ANSWER false
Start-up and operating costs must be considered when creating a ____________ . - ANSWER financial
plan
A _________ provides potential investors with a concrete description of your successes and
qualifications. - ANSWER business plan
,A _______________ combines the liability protection of a corporation with the favorable tax treatment
of a partnership or sole proprietorship. - ANSWER LLC
_____________ have a partner who contributes funds and or property to the business, but does not
provide any services or have any say in the day to day business. - ANSWER Limited Partnerships
It is a good idea to research business names through the ___________ website to avoid creating a
business name that is too similar to another registered name. - ANSWER Secretary of State
Can an independent contractor be a qualifier for a business entity? - ANSWER no
The division must be notified within _______ days, in writing, that a qualifying officer has ceased
association with a company. - ANSWER 10
If a qualifying person leaves a company, the license will remain active for ______ . - ANSWER 60 days
A home owner who builds three residential structures in a five year period is still exempt from licensing
requirements. - ANSWER True
A person engaged in the renovation of a commercial building, who works without compensation, is
exempt from licensure requirements. - ANSWER False
If the total value of a project is greater than $_______, the builder shall file with the division a one-time
affirmation. - ANSWER $1,000
Does a contractor working on a project valued at $2,500, who has filed a one-time affirmation with the
division, have to show proof of public liability insurance? - ANSWER Yes
Who is responsible for the investigation of persons and activities in violation of the Utah Construction
Trades Licensing Act? - ANSWER the Division of Occupational/Professional Licensing
, Which of the following is not considered "unlawful"? - ANSWER deliberate departure from plans or
specifications
Which of the following is considered "unprofessional conduct"?
1 Failing to establish, maintain, or demonstrate financial responsibility while licensed as a contractor
2 Allowing one's license to be used by another
3 Failure to complete a project without the consent of the owner
4 both a and c - ANSWER 4 both a and c
A contractor who submits a bid for a contract outside his/her license classification may have their license
immediately suspended. - ANSWER True
If within ______ calendar days from the service of the citation, the person to whom the citation was
issued fails to request a hearing to contest the citation, the citation becomes the final order. - ANSWER
20
A person who has violated the licensing laws of Utah one time could be fined up to $_______ . -
ANSWER $1,000
Third time offenders can be fined up to $______ for each day of continued offense. - ANSWER $2,000
Which of the following is qualified to perform construction for highways, water supply, flood control and
bridges? - ANSWER General Engineering Contractor
A Residential and Small Commercial Non-Structural Remodeler cannot perform work on a project valued
at more than $________ . - ANSWER $50,000
A Residential and Small Commercial contractor may not perform construction on buildings greater than
_________ square feet. - ANSWER 20,000
Does a lead removal company need to have a contractor's license? - ANSWER No
