FULL BUSINESS AND LAW PRACTICE EXAM.
1. A major purpose of licensing is to
Answer Protect the health, safety, and welfare of the public (3-1)
2. Where should a general contractor's license be displayed?Answer At the licensee's place of
business (3-2)
3. The state of North Carolina requires you must have a Contractor's License if the
dollar amount of the construction cost exceedsAnswer $40,000 (3-2)
4. John Smith inherited some money and quit his job. He has decided to build a house for
him and his family that they plan to sell within 1 year of completion. His potential cost
estimate is $565,000. At this time he is waiting on his building permit so he can begin
construction. How has he proceeded?
Answer Incorrectly - If you plan to resell a home within one year you must have a builder license (3-2)
5. Retake period for contractor's exam
Answer 30 days after the previous attempt (3-2)
6. North Carolina defines a general contractor as a person or firm or corporation who
,enters into construction contracts in the amount of at least?
Answer $40,000 (3-2)
7. Cost of limited license application
Answer $75 (3-2)
8. Address change reporting period
Answer 30 days (3-2)
9. Does a subcontractor need a license if they are working under the supervision of a
prime or general contractor?
Answer No (3-2)
10. If an applicant is unable to meet the working capital requirements they can?
Answer Present a surety bond (3-3)
11. If a surety bond was used to secure a license and that bond is canceled?
Answer The applicant must provide written proof of financial responsibility within thirty days or the license will be suspended.
(3-3)
12. North Carolina contractor licenses expire annually on January 1st. If the li- cense
is not renewed within days following expiration, it becomes invalid.
,Answer 60 (3-3)
13. Fee to renew Intermediate license
Answer $100 (3-3)
14. Once a contractor's license expires, what is the period of time before the contractor
has to repeat the entire license application process again?
Answer 4 Years (3-4)
15. Purpose of mechanics'/materialmen's lien
Answer To attach property to help suppliers and subcon- tractors to collect monies due (16-1)
16. For the purpose of lien law, who is considered to be in direct contract with the
owner of the property?
Answer The general contractor (16-1)
, 17. Within days of the building permit issuance, the general contractor can file a
notice of contract with the office of the clerk of superior court. The notice must be
posted on the property in a visible location adjacent to the posted building permit.
Answer 30 days (16-2)
18. What is not required on a notice of contract?
Answer Date of permit issuance (16-2)
19. A lien must be filed within days of providing the last labor or materials?-
Answer 120 days (16-6)
20. A lien must be foreclosed by commencement of a lawsuit within
days?
Answer 180 days (16-6)
21. How often do Contractor Licenses expire in North Carolina?Answer Annually (E-1)
22. A non-licensed contractor has hired a licensed Contractor to pull permits and
supervise the work under the permits. In this scenario, the board could invoke what
1. A major purpose of licensing is to
Answer Protect the health, safety, and welfare of the public (3-1)
2. Where should a general contractor's license be displayed?Answer At the licensee's place of
business (3-2)
3. The state of North Carolina requires you must have a Contractor's License if the
dollar amount of the construction cost exceedsAnswer $40,000 (3-2)
4. John Smith inherited some money and quit his job. He has decided to build a house for
him and his family that they plan to sell within 1 year of completion. His potential cost
estimate is $565,000. At this time he is waiting on his building permit so he can begin
construction. How has he proceeded?
Answer Incorrectly - If you plan to resell a home within one year you must have a builder license (3-2)
5. Retake period for contractor's exam
Answer 30 days after the previous attempt (3-2)
6. North Carolina defines a general contractor as a person or firm or corporation who
,enters into construction contracts in the amount of at least?
Answer $40,000 (3-2)
7. Cost of limited license application
Answer $75 (3-2)
8. Address change reporting period
Answer 30 days (3-2)
9. Does a subcontractor need a license if they are working under the supervision of a
prime or general contractor?
Answer No (3-2)
10. If an applicant is unable to meet the working capital requirements they can?
Answer Present a surety bond (3-3)
11. If a surety bond was used to secure a license and that bond is canceled?
Answer The applicant must provide written proof of financial responsibility within thirty days or the license will be suspended.
(3-3)
12. North Carolina contractor licenses expire annually on January 1st. If the li- cense
is not renewed within days following expiration, it becomes invalid.
,Answer 60 (3-3)
13. Fee to renew Intermediate license
Answer $100 (3-3)
14. Once a contractor's license expires, what is the period of time before the contractor
has to repeat the entire license application process again?
Answer 4 Years (3-4)
15. Purpose of mechanics'/materialmen's lien
Answer To attach property to help suppliers and subcon- tractors to collect monies due (16-1)
16. For the purpose of lien law, who is considered to be in direct contract with the
owner of the property?
Answer The general contractor (16-1)
, 17. Within days of the building permit issuance, the general contractor can file a
notice of contract with the office of the clerk of superior court. The notice must be
posted on the property in a visible location adjacent to the posted building permit.
Answer 30 days (16-2)
18. What is not required on a notice of contract?
Answer Date of permit issuance (16-2)
19. A lien must be filed within days of providing the last labor or materials?-
Answer 120 days (16-6)
20. A lien must be foreclosed by commencement of a lawsuit within
days?
Answer 180 days (16-6)
21. How often do Contractor Licenses expire in North Carolina?Answer Annually (E-1)
22. A non-licensed contractor has hired a licensed Contractor to pull permits and
supervise the work under the permits. In this scenario, the board could invoke what
