Louisiana Business and Law Exam Questions with Correct Answers Latest Update 2026/2027
The purpose of the contractor licensing laws is to - Answers Protect the public from fraudulent
contractors
Protect against inexperienced contractors
Protect the health, safety and general welfare of the public
Any construction project other than residential homes, a single residential duplex, tri-plex, or
four-plex. - Answers Commercial project
A contractor is a person that works on a project valued at ______ or more for commercial
purposes other than residential duplexes, tri-plexes or four-plexes. - Answers $50,000
A ___________ is the person who contracts directly with the owner. - Answers General contractor
A contractor that works on a preexisting owner occupied building is considered a _________ . -
Answers Home improvement contractor
A residential contractor is one who constructs a fixed structure when the cost exceeds
_________. - Answers $75,000
The state licensing board is comprised of ____ members. - Answers 15
The board has the power to do any of the following EXCEPT: - Answers Sue unlicensed
contractors
Licenses and renewals expire on _______. - Answers The anniversary date the license was issued
An applicant must furnish the board with proof of financial responsibility including proof of net
worth of at least ______ . - Answers $10,000
Is an applicant permitted to furnish a bond in lieu of proof of net worth? - Answers yes
When a qualifying party of a construction company leaves employment, the company has how
many days to inform the board? - Answers 30 days
A qualifying party can be which of the following: - Answers A co-partner
A stockholder
An employee who has been with the company at least 120 days
All of the above
An owner of a property who is improving their home for their own use does not have to have a
license to do construction work. - Answers True
, If you fail to comply with the rules of the board, you are subject to revocation or suspension of
your license. - Answers True
If you have been found guilty of violating the rules of the board more than twice in one year, you
will not be permitted to bid on a public project for up to ____ years - Answers 3
If a license has been denied by the board, the applicant has ____ to appeal. - Answers 6 months
A contractor who is unlicensed may be found guilty of a misdemeanor, and fined up to ________.
- Answers $500 per day of the violation
If an unlicensed contractor causes harm or damage to another in excess of $300, they can be
fined up to ______ and possibly be imprisoned up to _____ . - Answers $5,000 and 5 years
If a contractor has been ordered to cease and desist work, and fails to do so, that contractor
shall not be permitted to apply for a license for ___________ . - Answers 1 year
A residential contractor must provide all of the following EXCEPT: - Answers Proof of five years
experience
A contractor who opts to place his license in an inactive status must still submit proof of
insurance coverage. - Answers False
Residential contractors must pay a renewal fee of _____. - Answers $100.00
Residential contractors must pay a license fee of _____. - Answers $100.00
A home improvement project , in excess of _______ MUST have a written contract between the
contractor and the owner. - Answers $7,500
A home improvement contractor is required to register with the Residential Building Contractors
Subcommittee. - Answers True
A residential contractor must complete a minimum of _____ of continuing education per year. -
Answers 6 hours
Under LA contractor rules and regulations, all applications must include: - Answers References
Federal employer identification number
Fees
All of the above
Is it permitted for a company to have more than one qualifying party? - Answers Yes
An applicant for a home improvement license must provide proof of registration and proof of
_______. - Answers Workers Compensation Insurance
The purpose of the contractor licensing laws is to - Answers Protect the public from fraudulent
contractors
Protect against inexperienced contractors
Protect the health, safety and general welfare of the public
Any construction project other than residential homes, a single residential duplex, tri-plex, or
four-plex. - Answers Commercial project
A contractor is a person that works on a project valued at ______ or more for commercial
purposes other than residential duplexes, tri-plexes or four-plexes. - Answers $50,000
A ___________ is the person who contracts directly with the owner. - Answers General contractor
A contractor that works on a preexisting owner occupied building is considered a _________ . -
Answers Home improvement contractor
A residential contractor is one who constructs a fixed structure when the cost exceeds
_________. - Answers $75,000
The state licensing board is comprised of ____ members. - Answers 15
The board has the power to do any of the following EXCEPT: - Answers Sue unlicensed
contractors
Licenses and renewals expire on _______. - Answers The anniversary date the license was issued
An applicant must furnish the board with proof of financial responsibility including proof of net
worth of at least ______ . - Answers $10,000
Is an applicant permitted to furnish a bond in lieu of proof of net worth? - Answers yes
When a qualifying party of a construction company leaves employment, the company has how
many days to inform the board? - Answers 30 days
A qualifying party can be which of the following: - Answers A co-partner
A stockholder
An employee who has been with the company at least 120 days
All of the above
An owner of a property who is improving their home for their own use does not have to have a
license to do construction work. - Answers True
, If you fail to comply with the rules of the board, you are subject to revocation or suspension of
your license. - Answers True
If you have been found guilty of violating the rules of the board more than twice in one year, you
will not be permitted to bid on a public project for up to ____ years - Answers 3
If a license has been denied by the board, the applicant has ____ to appeal. - Answers 6 months
A contractor who is unlicensed may be found guilty of a misdemeanor, and fined up to ________.
- Answers $500 per day of the violation
If an unlicensed contractor causes harm or damage to another in excess of $300, they can be
fined up to ______ and possibly be imprisoned up to _____ . - Answers $5,000 and 5 years
If a contractor has been ordered to cease and desist work, and fails to do so, that contractor
shall not be permitted to apply for a license for ___________ . - Answers 1 year
A residential contractor must provide all of the following EXCEPT: - Answers Proof of five years
experience
A contractor who opts to place his license in an inactive status must still submit proof of
insurance coverage. - Answers False
Residential contractors must pay a renewal fee of _____. - Answers $100.00
Residential contractors must pay a license fee of _____. - Answers $100.00
A home improvement project , in excess of _______ MUST have a written contract between the
contractor and the owner. - Answers $7,500
A home improvement contractor is required to register with the Residential Building Contractors
Subcommittee. - Answers True
A residential contractor must complete a minimum of _____ of continuing education per year. -
Answers 6 hours
Under LA contractor rules and regulations, all applications must include: - Answers References
Federal employer identification number
Fees
All of the above
Is it permitted for a company to have more than one qualifying party? - Answers Yes
An applicant for a home improvement license must provide proof of registration and proof of
_______. - Answers Workers Compensation Insurance
