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1. What is the main purpose of the California Contractors State License
Board (CSLB)?
A. To promote competition among contractors
B. To protect the public by regulating construction practices
C. To issue permits for new building projects
D. To establish construction project budgets
Rationale: The CSLB’s primary purpose is public protection through
licensing and regulating contractors to ensure compliance with laws and
safety standards.
2. How many years of journey-level experience are required to qualify for a
contractor’s license in California?
A. Two years
B. Three years
C. Four years
D. Five years
Rationale: Applicants must have at least four years of journey-level or
supervisory experience in their trade within the last 10 years.
,3. Which of the following is required for a contractor to maintain an active
license?
A. Workers’ compensation insurance (if they have employees)
B. General liability insurance
C. Both A and B
D. Only a business license
Rationale: Contractors must maintain workers’ compensation if they
have employees and general liability insurance to protect against
property or bodily injury claims.
4. What is the penalty for contracting without a valid license in California?
A. Warning only
B. Misdemeanor offense with possible jail time and fines
C. License suspension
D. Civil citation only
Rationale: Contracting without a valid license is a misdemeanor
punishable by fines and possible imprisonment under Business and
Professions Code 7028.
5. What is the minimum age to qualify for a California contractor’s license?
A. 16
B. 18
C. 18 years old
D. 21
Rationale: The CSLB requires applicants to be at least 18 years old to
hold a contractor’s license.
6. Which bond must a licensed contractor maintain in California?
A. Performance bond
B. Contractor’s license bond
C. Bid bond
D. Material bond
, Rationale: All licensed contractors must maintain a contractor’s license
bond as required by the CSLB to protect consumers from financial harm.
7. How often must a contractor renew their California license?
A. Every year
B. Every two years
C. Every three years
D. Every five years
Rationale: California contractor licenses must be renewed every two
years to remain valid.
8. Which of the following entities may NOT hold a contractor’s license in
California?
A. Corporation
B. Partnership
C. Sole proprietorship
D. Nonprofit organization
Rationale: Nonprofit organizations do not qualify for a contractor’s
license under CSLB regulations.
9. Which exam must all license applicants pass regardless of trade?
A. Law and safety exam
B. Technical trade exam
C. Law and Business exam
D. Project management exam
Rationale: All applicants must pass the Law and Business exam, which
covers legal and administrative aspects of contracting.
10.What is the main purpose of the Home Improvement Contract (HIC)?
A. To serve as an estimate
B. To outline the project timeline
C. To protect both contractor and homeowner by defining terms and