California Contractors License Test Class Questions Already Verified A+

California Contractors License Test Class Questions Already Verified A+ Who does not need a contractors License? ️someone who does certain construction on commercial agricultural property The contractor surety Bond necessary for most contractors to obtain their license is in the amount of ️$15,000 When licensed as a Sole Proprietor the license belongs to ️the Company Which is true of an inactive license? ️Must be renewed every 4 Years How many classifications can an RME apply for? ️As many classifications as he or she can qualify for. A prime contractor shall pay his or her subcontractors ️within 7 days of receipt of each progress payment A contractor wants to use a fictitious name as a business name style. When does the fictitious name statement needed to be filed? ️Before conducting Business During a declared state of emergency how much may a contractor increase his prices? ️10%above the price just prior to the declared state of emergency. If John Burroughs the sole proprietor of a pluming company is applying for a license as am individual, which of the following name styles is not permitted? ️permitted: John Burroughs Burroughs Plumbing Co. J.B. Co. Not-Permitted: John Burroughs Inc. Active licenses must be registered every------ and inactive licenses should be registered every----- ️2 years, 4 years After you pass the state license test what should you do in order to receive an active license number? ️Pay your registration fees. Submit a complete asbestos open book examination. Show proof of workers comp insurance or submit a waiver of workers comp and submit your "pass" letter. Which of the following may qualify for more than one contractors license? ️Sole proprietor. How many classifications may a qualifier add to a license? ️As many qualifications as he qualifies for. which of the following may be protected by a Contract Bond? ️-A client damaged by the contractors violation of the contract. -Any person damaged by contractor fraud -Any contractor damaged by contractors failure to pay wages. What is the best way for the homeowner to protect his property from having a lien placed on his property, when signing a Home improvement contract. ️Require the Prime Contractor to Supply a performance and Payment Bond. CSLB established the State Wide Investigative Fraud Team (SWIFT). CSLB'S SWIFT has the authority to: ️Cite those not properly licensed Which is not part of the Home Improvement Contract? ️Preliminary Notice What us the purpose of the Preliminary Notice? ️Assert Mechanic Liens and Stop notice Rights Preliminary Notices are filed? ️within 20 days from first furnishing labor or materials. Which of the following is the most important practices to follow when trying to avoid disagreements with an owner? ️Be sure to include a detailed description of the project and everything that is to be done in the contract. Why should a contractor keep a record of all Change Orders? ️State law Requires It Which of the following people file a Stop Notice? ️a subcontractor contracted to do specialty trade and was not paid. Who signs a "Joint Control Agreement"? ️The lender, the property owner and the Prime Contractor. How long will the CSLB hold a contractor responsible for observable defects? ️4 years The CSLB offers a free voluntary arbitration program for disputes alleged damages: ️Between $15,000 and $50,000 If a contractor includes provision in a contract for use of private arbitration and a dispute between the owner and the contractor makes an arbitration necessary, who will bare the cost of a private arbitrator? ️The Owner and contractor will slit the cost of the arbitration. If a contractor provides the owner with a 10-year written warranty covering a patio cover he has installed, and the cover begins to deteriorate after 5 years of being installed which is true? ️the state will hold the contractor liable for the entire term of the written warranty. Who is responsible for providing the owner a copy of the "Notice of Cancellation"? ️The Prime Contractor In which of the following circumstances must you provide your license number? ️All contracts, all Advertising, All preliminary Notices. Who is responsible for determining when the project is complete? ️The owner/ his Agent Stop Notices are Bonder for ️1 & 1/4 the amount of the claim In drawing up "Home Improvement Contracts," contractors should pay attention to the requirements of print typeface and point size of the notices and disclosures. Unless a larger typeface is specified in the law (Business and professions Code) text in any printed form should be: ️10-pt Typeface and the headers should be at least 10-pt Boldface The costs of running your business including office expenses etc, is called: ️Overhead expenses Direct Labor is compromised of: ️cost for labor and payroll taxes Which of the following is an asset in the Balance sheet? ️Accounts Receivable Direct Costs Consist of: ️Direct Labor, Direct labor burden, direct materials and other direct costs. Good Cash Flow is achieved when: ️current liabilities are less than current assets Equity is: ️Total assets less total liabilities Networking Capital is: ️the difference between current assets and curr