CA CONTRACTORS LICENSE TEST QUESTIONS
BUSINESS AND LAW NEWEST 2026 VERSION A AND
VERSION B COMPLETE 140 QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) |ALREADY GRADED A
VERSION A
Who must sign and date the contract? - CORRECT ANSWER ✔✔- Client
and contractor
After the lien has been recorded by the contractor, what is the next
step - CORRECT ANSWER ✔✔- File the lawsuit to 'perfect' the lien
What is the purpose of the mechanic's lien? - CORRECT ANSWER ✔✔- It
encumber the owners property as security until the bill is paid
What info is needed on a time card according to the fair labor standard
act? - CORRECT ANSWER ✔✔- Social security
Who is required to conduct safety/tailgate meetings? - CORRECT
ANSWER ✔✔- Supervisors are required every 10 days
In a construction business, who is responsible for training new
employees - CORRECT ANSWER ✔✔- The contractor
1|Page
,How much time do contractors have to record mechanics lien after a
notice of completion has been recorded - CORRECT ANSWER ✔✔- 30
days.
Prime contractors will have 60
What is the purpose of notice to owner? - CORRECT ANSWER ✔✔- To
inform the home owner of the contractors lien rights
If the contractor obtains his contractors license on April 7, 2010 when
will the license need to be renewed? - CORRECT ANSWER ✔✔- April 30
2012
Contract expires 2 years at the end of the month
Where would depressiation appear on the balance sheet> - CORRECT
ANSWER ✔✔- Fixed assets.
Only fixed assets can be depreciated
Homeowners have how many days from the date of completion to file a
notice of completion - CORRECT ANSWER ✔✔- 15
On public projects, the contractor must pay his employees at what
rate? - CORRECT ANSWER ✔✔- Regular pay
2|Page
, What are fixed costs in the construction business - CORRECT ANSWER
✔✔- Rent, Managers salary
What does the ceiling limit mean in tax - CORRECT ANSWER ✔✔- Max
tax that can be imposed
What does the occurrence basis cover in liability insurance? - CORRECT
ANSWER ✔✔- After the insurance policy has expired, the contractor is
still covered
Occurrence basis means that as long as you had insurance during the
time of the accident, you will be covered, even if the claim was filed
after the expiration of the policy
If an employee shows up 15 minutes late to work, what is the max
amount of time the employer can deduct from wages? - CORRECT
ANSWER ✔✔- 30 minutes
Whats the max amount of time a minor can work on a school day? -
CORRECT ANSWER ✔✔- 4 hrs
It is recommended for a contractor to renew the contractors license
bond when? - CORRECT ANSWER ✔✔- 30 days before it expires
What costs are significant when bidding on public works projects -
CORRECT ANSWER ✔✔- wages
3|Page
BUSINESS AND LAW NEWEST 2026 VERSION A AND
VERSION B COMPLETE 140 QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) |ALREADY GRADED A
VERSION A
Who must sign and date the contract? - CORRECT ANSWER ✔✔- Client
and contractor
After the lien has been recorded by the contractor, what is the next
step - CORRECT ANSWER ✔✔- File the lawsuit to 'perfect' the lien
What is the purpose of the mechanic's lien? - CORRECT ANSWER ✔✔- It
encumber the owners property as security until the bill is paid
What info is needed on a time card according to the fair labor standard
act? - CORRECT ANSWER ✔✔- Social security
Who is required to conduct safety/tailgate meetings? - CORRECT
ANSWER ✔✔- Supervisors are required every 10 days
In a construction business, who is responsible for training new
employees - CORRECT ANSWER ✔✔- The contractor
1|Page
,How much time do contractors have to record mechanics lien after a
notice of completion has been recorded - CORRECT ANSWER ✔✔- 30
days.
Prime contractors will have 60
What is the purpose of notice to owner? - CORRECT ANSWER ✔✔- To
inform the home owner of the contractors lien rights
If the contractor obtains his contractors license on April 7, 2010 when
will the license need to be renewed? - CORRECT ANSWER ✔✔- April 30
2012
Contract expires 2 years at the end of the month
Where would depressiation appear on the balance sheet> - CORRECT
ANSWER ✔✔- Fixed assets.
Only fixed assets can be depreciated
Homeowners have how many days from the date of completion to file a
notice of completion - CORRECT ANSWER ✔✔- 15
On public projects, the contractor must pay his employees at what
rate? - CORRECT ANSWER ✔✔- Regular pay
2|Page
, What are fixed costs in the construction business - CORRECT ANSWER
✔✔- Rent, Managers salary
What does the ceiling limit mean in tax - CORRECT ANSWER ✔✔- Max
tax that can be imposed
What does the occurrence basis cover in liability insurance? - CORRECT
ANSWER ✔✔- After the insurance policy has expired, the contractor is
still covered
Occurrence basis means that as long as you had insurance during the
time of the accident, you will be covered, even if the claim was filed
after the expiration of the policy
If an employee shows up 15 minutes late to work, what is the max
amount of time the employer can deduct from wages? - CORRECT
ANSWER ✔✔- 30 minutes
Whats the max amount of time a minor can work on a school day? -
CORRECT ANSWER ✔✔- 4 hrs
It is recommended for a contractor to renew the contractors license
bond when? - CORRECT ANSWER ✔✔- 30 days before it expires
What costs are significant when bidding on public works projects -
CORRECT ANSWER ✔✔- wages
3|Page
