North Carolina Limited Contractor Exam
Questions And Correct Answers With
Rationales
1. What is the maximum project size allowed under a North Carolina
Limited Building Contractor license?
A. $750,000
B. $1,000,000
C. $500,000
D. No limit
Answer: C
The Limited license restricts the total project cost to $500,000.
2. Which agency is responsible for issuing contractor licenses in
North Carolina?
A. Department of Labor
B. Department of Insurance
C. North Carolina Licensing Board for General Contractors
D. Secretary of State
Answer: C
This board regulates general contractors in NC.
3. The minimum working capital required for a Limited license is:
A. $10,000
, B. $17,000
C. $20,000
D. $25,000
Answer: B
NC requires at least $17,000 working capital for the Limited
classification.
4. Which document shows proof of financial responsibility for
licensing?
A. Resume
B. Bank reference
C. Financial statement
D. Tax return
Answer: C
A financial statement is required to prove working capital.
5. Who can prepare the financial statement for a Limited license?
A. CPA only
B. Any accountant
C. The applicant
D. A bank officer
Answer: C
Limited license applicants may self-prepare financials.
6. What is the primary purpose of a building permit?
A. To ensure material cost accuracy
B. To ensure code compliance and public safety
C. To collect revenue
D. To control contractor competition
, Answer: B
Permits ensure compliance with building codes.
7. Who is responsible for arranging inspections on a project?
A. Owner
B. Architect
C. Contractor
D. Subcontractor
Answer: C
The contractor schedules all required inspections.
8. What is the maximum penalty for unlicensed contracting in NC?
A. $1,000
B. $2,500
C. Misdemeanor charge
D. Felony charge
Answer: C
Unlicensed contracting is a misdemeanor offense.
9. What is the minimum contract amount requiring a general
contractor license in NC?
A. $15,000
B. $20,000
C. $30,000
D. $40,000
Answer: B
A license is required for projects costing $20,000 or more.
10. What is a change order?
A. A change in materials only
B. A modification to the contract scope, cost, or timeline
Questions And Correct Answers With
Rationales
1. What is the maximum project size allowed under a North Carolina
Limited Building Contractor license?
A. $750,000
B. $1,000,000
C. $500,000
D. No limit
Answer: C
The Limited license restricts the total project cost to $500,000.
2. Which agency is responsible for issuing contractor licenses in
North Carolina?
A. Department of Labor
B. Department of Insurance
C. North Carolina Licensing Board for General Contractors
D. Secretary of State
Answer: C
This board regulates general contractors in NC.
3. The minimum working capital required for a Limited license is:
A. $10,000
, B. $17,000
C. $20,000
D. $25,000
Answer: B
NC requires at least $17,000 working capital for the Limited
classification.
4. Which document shows proof of financial responsibility for
licensing?
A. Resume
B. Bank reference
C. Financial statement
D. Tax return
Answer: C
A financial statement is required to prove working capital.
5. Who can prepare the financial statement for a Limited license?
A. CPA only
B. Any accountant
C. The applicant
D. A bank officer
Answer: C
Limited license applicants may self-prepare financials.
6. What is the primary purpose of a building permit?
A. To ensure material cost accuracy
B. To ensure code compliance and public safety
C. To collect revenue
D. To control contractor competition
, Answer: B
Permits ensure compliance with building codes.
7. Who is responsible for arranging inspections on a project?
A. Owner
B. Architect
C. Contractor
D. Subcontractor
Answer: C
The contractor schedules all required inspections.
8. What is the maximum penalty for unlicensed contracting in NC?
A. $1,000
B. $2,500
C. Misdemeanor charge
D. Felony charge
Answer: C
Unlicensed contracting is a misdemeanor offense.
9. What is the minimum contract amount requiring a general
contractor license in NC?
A. $15,000
B. $20,000
C. $30,000
D. $40,000
Answer: B
A license is required for projects costing $20,000 or more.
10. What is a change order?
A. A change in materials only
B. A modification to the contract scope, cost, or timeline
