CSLB LAW AND BUSINESS EXAM
QUESTIONS WITH VERIFIED
ANSWERS. A+ GRADE 2025/2026.
What is the minimum bond amount required for a contractor license in California? -
ANS $25.000
What is the penalty for acting as a contractor without a license in California? - ANS it is a
MISDEMEANOR
What does the CSLB issue to a contractor for a minor violation as a warning? - ANS Advisory
Notice
How long are citations against licensed contractors disclosed to the public? - ANS 5 years
What is the maximum allowable down payment for a home improvement contract in
California? - ANS $1,000 or 10% of the contract price, Whichever is less
Home improvements contracts must include which of the following? - ANS •description of
materials
•start and completion dates
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, •permissible delays
Which business structures provides liability protection similar to a corporation but has different
tax treatment? - ANS Limited Liability Company (LLC)
What type of bond guarantees both job completion and payment of all labor and materials? -
ANS Contract Bond
What is the minimum liability insurance required for a limited liability company (LLC) with 5 or
fewer personnel? - ANS $1 million
What is the purpose of a disciplinary bond for a contractor? - ANS To ensure compliance with
licensing rules following disciplinary action
What agency is responsible for licensing and regulating contractors in California? -
ANS Contractors State Licensing Board (CSLB)
What is the main purpose of the contractors state license board? (CSLB) - ANS To protect
consumers by regulating the construction industry
Which of the following violations could be lead to a contractors license suspension? -
ANS •advertising without a license number
•failing to pay subcontractor
•poor workmanship
Which license classification requires workers' compensation insurance, even if the contractor
has no employees? - ANS C-39 Roofing
Whats is the role of the Statewide Investigative Fraud Team? (SWIFT) - ANS To investigate
unlicensed contractors activity
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
QUESTIONS WITH VERIFIED
ANSWERS. A+ GRADE 2025/2026.
What is the minimum bond amount required for a contractor license in California? -
ANS $25.000
What is the penalty for acting as a contractor without a license in California? - ANS it is a
MISDEMEANOR
What does the CSLB issue to a contractor for a minor violation as a warning? - ANS Advisory
Notice
How long are citations against licensed contractors disclosed to the public? - ANS 5 years
What is the maximum allowable down payment for a home improvement contract in
California? - ANS $1,000 or 10% of the contract price, Whichever is less
Home improvements contracts must include which of the following? - ANS •description of
materials
•start and completion dates
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, •permissible delays
Which business structures provides liability protection similar to a corporation but has different
tax treatment? - ANS Limited Liability Company (LLC)
What type of bond guarantees both job completion and payment of all labor and materials? -
ANS Contract Bond
What is the minimum liability insurance required for a limited liability company (LLC) with 5 or
fewer personnel? - ANS $1 million
What is the purpose of a disciplinary bond for a contractor? - ANS To ensure compliance with
licensing rules following disciplinary action
What agency is responsible for licensing and regulating contractors in California? -
ANS Contractors State Licensing Board (CSLB)
What is the main purpose of the contractors state license board? (CSLB) - ANS To protect
consumers by regulating the construction industry
Which of the following violations could be lead to a contractors license suspension? -
ANS •advertising without a license number
•failing to pay subcontractor
•poor workmanship
Which license classification requires workers' compensation insurance, even if the contractor
has no employees? - ANS C-39 Roofing
Whats is the role of the Statewide Investigative Fraud Team? (SWIFT) - ANS To investigate
unlicensed contractors activity
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
