Nevada Business And Law Exam
Practice Questions And Correct Answers
(Verified Answers) Plus Rationales 2025
Q&A | Instant Download Pdf
1. What-is-the-minimum-number-of-years-a-contractor's-records-must-be-
kept-in-Nevada?-
• 4-years-
• 2-years-
• 6-years-
• 10-years-
Contractors-are-required-to-retain-business-records-for-at-least-4-years-
per-Nevada-law.-
2.-Which-of-the-following-business-structures-provides-the-least-personal-
liability-protection?-
• Sole-proprietorship-
• Corporation-
• LLC-
, Limited-partnership-
A-sole-proprietorship-does-not-separate-business-and-personal-liability,-
exposing-personal-assets.-
3.-A-general-contractor-must-provide-a-disclosure-statement-to-the-owner-
for-contracts-exceeding:-
• $5,000-
• $10,000-
• $25,000-
• $50,000-
Nevada-law-mandates-a-disclosure-statement-for-contracts-exceeding-
$25,000-to-protect-homeowners.-
4.-How-often-must-Nevada-contractors-renew-their-license?-
• Every-year-
• Every-2-years-
• Every-3-years-
• Every-5-years-
Nevada-contractors-are-required-to-renew-their-licenses-biennially.-
5.-Which-Nevada-agency-regulates-and-licenses-contractors?-
• Department-of-Labor-
• Department-of-Business-and-Industry-
• Nevada-State-Contractors-Board-
Secretary-of-State-
, The-Nevada-State-Contractors-Board-oversees-licensing-and-regulation-
of-contractors.-
6.-If-a-contractor-is-convicted-of-a-felony,-they-must-notify-the-board-within:-
• 30-days-
• 10-days-
• 15-days-
• 90-days-
Contractors-must-report-a-felony-conviction-to-the-board-within-90-
days.-
7.-What-is-the-purpose-of-a-surety-bond-for-a-Nevada-contractor?-
• To-protect-consumers-from-financial-harm-due-to-a-contractor’s-failure-
to-meet-obligations-
• To-pay-employees-
• To-cover-insurance-
• To-secure-loans-
A-surety-bond-provides-financial-protection-for-clients-and-ensures-
contractor-compliance.-
8.-The-primary-purpose-of-OSHA-is-to:-
• Protect-consumer-rights-
• Ensure-safe-and-healthful-working-conditions-
• Manage-workers'-compensation-
Oversee-tax-filings-
, OSHA-promotes-workplace-safety-standards-and-enforcement.-
9.-What-is-the-minimum-workers’-compensation-insurance-requirement-in-
Nevada?-
• For-companies-with-10+-employees-
• For-companies-with-5+-employees-
• For-any-employee,-even-one-
• Only-if-employees-work-more-than-40-hours/week-
Nevada-law-requires-workers'-compensation-for-any-business-with-at-
least-one-employee.-
10.- When-must-a-preliminary-notice-be-served-to-secure-lien-rights?-
• After-project-completion-
• Within-31-days-of-first-furnishing-labor-or-materials-
• Before-signing-contract-
• Within-10-days-of-receiving-payment-
A-timely-preliminary-notice-preserves-lien-rights-in-Nevada.-
11.- Who-is-responsible-for-reporting-use-tax-in-Nevada?-
• Clients-
• Material-suppliers-
• Contractors-
• Subcontractors-
Contractors-are-responsible-for-use-tax-when-purchasing-materials-out-
of-state-without-paying-Nevada-sales-tax.-
Practice Questions And Correct Answers
(Verified Answers) Plus Rationales 2025
Q&A | Instant Download Pdf
1. What-is-the-minimum-number-of-years-a-contractor's-records-must-be-
kept-in-Nevada?-
• 4-years-
• 2-years-
• 6-years-
• 10-years-
Contractors-are-required-to-retain-business-records-for-at-least-4-years-
per-Nevada-law.-
2.-Which-of-the-following-business-structures-provides-the-least-personal-
liability-protection?-
• Sole-proprietorship-
• Corporation-
• LLC-
, Limited-partnership-
A-sole-proprietorship-does-not-separate-business-and-personal-liability,-
exposing-personal-assets.-
3.-A-general-contractor-must-provide-a-disclosure-statement-to-the-owner-
for-contracts-exceeding:-
• $5,000-
• $10,000-
• $25,000-
• $50,000-
Nevada-law-mandates-a-disclosure-statement-for-contracts-exceeding-
$25,000-to-protect-homeowners.-
4.-How-often-must-Nevada-contractors-renew-their-license?-
• Every-year-
• Every-2-years-
• Every-3-years-
• Every-5-years-
Nevada-contractors-are-required-to-renew-their-licenses-biennially.-
5.-Which-Nevada-agency-regulates-and-licenses-contractors?-
• Department-of-Labor-
• Department-of-Business-and-Industry-
• Nevada-State-Contractors-Board-
Secretary-of-State-
, The-Nevada-State-Contractors-Board-oversees-licensing-and-regulation-
of-contractors.-
6.-If-a-contractor-is-convicted-of-a-felony,-they-must-notify-the-board-within:-
• 30-days-
• 10-days-
• 15-days-
• 90-days-
Contractors-must-report-a-felony-conviction-to-the-board-within-90-
days.-
7.-What-is-the-purpose-of-a-surety-bond-for-a-Nevada-contractor?-
• To-protect-consumers-from-financial-harm-due-to-a-contractor’s-failure-
to-meet-obligations-
• To-pay-employees-
• To-cover-insurance-
• To-secure-loans-
A-surety-bond-provides-financial-protection-for-clients-and-ensures-
contractor-compliance.-
8.-The-primary-purpose-of-OSHA-is-to:-
• Protect-consumer-rights-
• Ensure-safe-and-healthful-working-conditions-
• Manage-workers'-compensation-
Oversee-tax-filings-
, OSHA-promotes-workplace-safety-standards-and-enforcement.-
9.-What-is-the-minimum-workers’-compensation-insurance-requirement-in-
Nevada?-
• For-companies-with-10+-employees-
• For-companies-with-5+-employees-
• For-any-employee,-even-one-
• Only-if-employees-work-more-than-40-hours/week-
Nevada-law-requires-workers'-compensation-for-any-business-with-at-
least-one-employee.-
10.- When-must-a-preliminary-notice-be-served-to-secure-lien-rights?-
• After-project-completion-
• Within-31-days-of-first-furnishing-labor-or-materials-
• Before-signing-contract-
• Within-10-days-of-receiving-payment-
A-timely-preliminary-notice-preserves-lien-rights-in-Nevada.-
11.- Who-is-responsible-for-reporting-use-tax-in-Nevada?-
• Clients-
• Material-suppliers-
• Contractors-
• Subcontractors-
Contractors-are-responsible-for-use-tax-when-purchasing-materials-out-
of-state-without-paying-Nevada-sales-tax.-
