Utah General Contractor Business & Law
Exam | Study Guide & Practice Test||
LATEST UPDATE 2026/27
Which business organization is regulated the least by the government? -
CORRECTANSWER 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. -CORRECTANSWER false
What business organization provides the most financial protection for the owners? -
CORRECTANSWER Corporation
Sole Proprietorships can issue and sell stock in the company to raise capital. -
CORRECTANSWER false
Can a corporation actually be listed as the sole owner of a property? -
CORRECTANSWER yes
Limited Liability Companies have the ability to be passed down to family members when
an owner (member) dies. -CORRECTANSWER false
,Sub Chapter "S" Corporations can retain their status no matter how many stockholders
they have. -CORRECTANSWER false
Start-up and operating costs must be considered when creating a ____________ . -
CORRECTANSWER financial plan
A _________ provides potential investors with a concrete description of your successes
and qualifications. -CORRECTANSWER business plan
A _______________ combines the liability protection of a corporation with the favorable
tax treatment of a partnership or sole proprietorship. -CORRECTANSWER LLC
_____________ 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. -
CORRECTANSWER 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. -
CORRECTANSWER 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. -CORRECTANSWER True
,If a corporation is eligible to be taxed as a partnership and chooses to take this option, it
is referred to as ___________________. -CORRECTANSWER S Corporation
This serves as a reminder to owners, employees, subcontractors, suppliers and
customers of what the company wants to do and become. -CORRECTANSWER
Mission Statement
Identifying probable customers and attracting them to your product or service is known
as _______________. -CORRECTANSWER Marketing
The Construction Services Commission shall be comprised of ______ members. -
CORRECTANSWER nine
Which of the following is NOT required from an applicant before being issued a license?
-CORRECTANSWER proof of incorporation
Each contractor licensee under a license issued under this chapter shall complete
_____ hours of approved continuing education. -CORRECTANSWER 6
Contractor licenses are issued on a _____ renewal cycle. -CORRECTANSWER 2 year
, If a license has been suspended, the applicant must resolve any and all outstanding
fines, citations and judgements. -CORRECTANSWER True
A contractor license number must be attached to which of the following?
1 permit applications
2 bids (when a license is required)
3 contracts
4 all of the above -CORRECTANSWER all of the above
Can an independent contractor be a qualifier for a business entity? -
CORRECTANSWER no
The division must be notified within _______ days, in writing, that a qualifying officer
has ceased association with a company. -CORRECTANSWER 10
If a qualifying person leaves a company, the license will remain active for ______ . -
CORRECTANSWER 60 days
A home owner who builds three residential structures in a five year period is still exempt
from licensing requirements. -CORRECTANSWER True
Exam | Study Guide & Practice Test||
LATEST UPDATE 2026/27
Which business organization is regulated the least by the government? -
CORRECTANSWER 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. -CORRECTANSWER false
What business organization provides the most financial protection for the owners? -
CORRECTANSWER Corporation
Sole Proprietorships can issue and sell stock in the company to raise capital. -
CORRECTANSWER false
Can a corporation actually be listed as the sole owner of a property? -
CORRECTANSWER yes
Limited Liability Companies have the ability to be passed down to family members when
an owner (member) dies. -CORRECTANSWER false
,Sub Chapter "S" Corporations can retain their status no matter how many stockholders
they have. -CORRECTANSWER false
Start-up and operating costs must be considered when creating a ____________ . -
CORRECTANSWER financial plan
A _________ provides potential investors with a concrete description of your successes
and qualifications. -CORRECTANSWER business plan
A _______________ combines the liability protection of a corporation with the favorable
tax treatment of a partnership or sole proprietorship. -CORRECTANSWER LLC
_____________ 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. -
CORRECTANSWER 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. -
CORRECTANSWER 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. -CORRECTANSWER True
,If a corporation is eligible to be taxed as a partnership and chooses to take this option, it
is referred to as ___________________. -CORRECTANSWER S Corporation
This serves as a reminder to owners, employees, subcontractors, suppliers and
customers of what the company wants to do and become. -CORRECTANSWER
Mission Statement
Identifying probable customers and attracting them to your product or service is known
as _______________. -CORRECTANSWER Marketing
The Construction Services Commission shall be comprised of ______ members. -
CORRECTANSWER nine
Which of the following is NOT required from an applicant before being issued a license?
-CORRECTANSWER proof of incorporation
Each contractor licensee under a license issued under this chapter shall complete
_____ hours of approved continuing education. -CORRECTANSWER 6
Contractor licenses are issued on a _____ renewal cycle. -CORRECTANSWER 2 year
, If a license has been suspended, the applicant must resolve any and all outstanding
fines, citations and judgements. -CORRECTANSWER True
A contractor license number must be attached to which of the following?
1 permit applications
2 bids (when a license is required)
3 contracts
4 all of the above -CORRECTANSWER all of the above
Can an independent contractor be a qualifier for a business entity? -
CORRECTANSWER no
The division must be notified within _______ days, in writing, that a qualifying officer
has ceased association with a company. -CORRECTANSWER 10
If a qualifying person leaves a company, the license will remain active for ______ . -
CORRECTANSWER 60 days
A home owner who builds three residential structures in a five year period is still exempt
from licensing requirements. -CORRECTANSWER True
