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UTAH GENERAL CONTRACTOR'S
COURSE - BUSINESS AND LAW EXAM
PREP QUESTIONS WITH DETAILED
VERIFIED ANSWERS
Which business organization is regulated the least by the government?
Ans: 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. Ans: false
What business organization provides the most financial protection for the
owners? Ans: Corporation
Sole Proprietorships can issue and sell stock in the company to raise
capital. Ans: false
Can a corporation actually be listed as the sole owner of a property?
Ans: yes
Limited Liability Companies have the ability to be passed down to family
members when an owner (member) dies. Ans: false
Sub Chapter "S" Corporations can retain their status no matter how many
stockholders they have. Ans: false
Start-up and operating costs must be considered when creating a
____________ . Ans: financial plan
A _________ provides potential investors with a concrete description of
your successes and qualifications. Ans: business plan
A _______________ combines the liability protection of a corporation
with the favorable tax treatment of a partnership or sole proprietorship.
Ans: LLC
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_____________ 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. Ans: 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. Ans: Secretary of State
One pitfall of a General Partnership is that each partner is personally
responsible for the debts of the business, and this debt responsibility is
not limited to the percentage of ownership. Ans: True
If a corporation is eligible to be taxed as a partnership and chooses to
take this option, it is referred to as ___________________. Ans: S
Corporation
This serves as a reminder to owners, employees, subcontractors,
suppliers and customers of what the company wants to do and become.
Ans: Mission Statement
Identifying probable customers and attracting them to your product or
service is known as _______________. Ans: Marketing
The Construction Services Commission shall be comprised of ______
members. Ans: nine
Which of the following is NOT required from an applicant before being
issued a license? Ans: proof of incorporation
Each contractor licensee under a license issued under this chapter shall
complete _____ hours of approved continuing education. Ans: 6
Contractor licenses are issued on a _____ renewal cycle. Ans: 2 year
If a license has been suspended, the applicant must resolve any and all
outstanding fines, citations and judgements. Ans: True
A contractor license number must be attached to which of the following?
1 permit applications
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2 bids (when a license is required)
3 contracts
4 all of the above Ans: all of the above
Can an independent contractor be a qualifier for a business entity? Ans:
no
The division must be notified within _______ days, in writing, that a
qualifying officer has ceased association with a company. Ans: 10
If a qualifying person leaves a company, the license will remain active for
______ . Ans: 60 days
A home owner who builds three residential structures in a five year
period is still exempt from licensing requirements. Ans: True
A person engaged in the renovation of a commercial building, who works
without compensation, is exempt from licensure requirements. Ans:
False
If the total value of a project is greater than $_______, the builder shall
file with the division a one-time affirmation. Ans: $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? Ans: Yes
Who is responsible for the investigation of persons and activities in
violation of the Utah Construction Trades Licensing Act? Ans: the
Division of Occupational/Professional Licensing
Which of the following is not considered "unlawful"? Ans: 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
UTAH GENERAL CONTRACTOR'S
COURSE - BUSINESS AND LAW EXAM
PREP QUESTIONS WITH DETAILED
VERIFIED ANSWERS
Which business organization is regulated the least by the government?
Ans: 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. Ans: false
What business organization provides the most financial protection for the
owners? Ans: Corporation
Sole Proprietorships can issue and sell stock in the company to raise
capital. Ans: false
Can a corporation actually be listed as the sole owner of a property?
Ans: yes
Limited Liability Companies have the ability to be passed down to family
members when an owner (member) dies. Ans: false
Sub Chapter "S" Corporations can retain their status no matter how many
stockholders they have. Ans: false
Start-up and operating costs must be considered when creating a
____________ . Ans: financial plan
A _________ provides potential investors with a concrete description of
your successes and qualifications. Ans: business plan
A _______________ combines the liability protection of a corporation
with the favorable tax treatment of a partnership or sole proprietorship.
Ans: LLC
, Page | 2
_____________ 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. Ans: 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. Ans: Secretary of State
One pitfall of a General Partnership is that each partner is personally
responsible for the debts of the business, and this debt responsibility is
not limited to the percentage of ownership. Ans: True
If a corporation is eligible to be taxed as a partnership and chooses to
take this option, it is referred to as ___________________. Ans: S
Corporation
This serves as a reminder to owners, employees, subcontractors,
suppliers and customers of what the company wants to do and become.
Ans: Mission Statement
Identifying probable customers and attracting them to your product or
service is known as _______________. Ans: Marketing
The Construction Services Commission shall be comprised of ______
members. Ans: nine
Which of the following is NOT required from an applicant before being
issued a license? Ans: proof of incorporation
Each contractor licensee under a license issued under this chapter shall
complete _____ hours of approved continuing education. Ans: 6
Contractor licenses are issued on a _____ renewal cycle. Ans: 2 year
If a license has been suspended, the applicant must resolve any and all
outstanding fines, citations and judgements. Ans: True
A contractor license number must be attached to which of the following?
1 permit applications
, Page | 3
2 bids (when a license is required)
3 contracts
4 all of the above Ans: all of the above
Can an independent contractor be a qualifier for a business entity? Ans:
no
The division must be notified within _______ days, in writing, that a
qualifying officer has ceased association with a company. Ans: 10
If a qualifying person leaves a company, the license will remain active for
______ . Ans: 60 days
A home owner who builds three residential structures in a five year
period is still exempt from licensing requirements. Ans: True
A person engaged in the renovation of a commercial building, who works
without compensation, is exempt from licensure requirements. Ans:
False
If the total value of a project is greater than $_______, the builder shall
file with the division a one-time affirmation. Ans: $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? Ans: Yes
Who is responsible for the investigation of persons and activities in
violation of the Utah Construction Trades Licensing Act? Ans: the
Division of Occupational/Professional Licensing
Which of the following is not considered "unlawful"? Ans: 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
