Tennessee Commercial / Industrial Contractor Exam (BC-B,C) Exam
Practice Questions And Correct Answers (Verified Answers) Plus
Rationale 2026 Instant Download Pdf (GRUARANTEED PASS)
Question 1
A contractor bidding on a Tennessee commercial/industrial project must
ensure compliance with licensing requirements. Which of the following
best describes the limitation of a BC-B,C license classification?
A) It allows unrestricted residential construction only
B) It limits work strictly to electrical installations
C) It permits both commercial and industrial construction within the
monetary limits of the license
D) It allows only subcontracting work under a general contractor
VERIFIED ANSWER: C) It permits both commercial and industrial
construction within the monetary limits of the license
Rationale: The BC-B,C classification authorizes contractors to perform
both commercial and industrial construction projects, provided they
remain within their approved monetary limit as set by the Tennessee
Board for Licensing Contractors.
Question 2
In Tennessee, what is the primary purpose of requiring contractors to
maintain a monetary limit on their license?
,A) To determine tax liability
B) To ensure contractors only take projects they are financially capable
of completing
C) To restrict out-of-state contractors
D) To limit the number of projects per year
VERIFIED ANSWER: B) To ensure contractors only take projects they
are financially capable of completing
Rationale: The monetary limit is based on the contractor's net worth and
financial condition, ensuring they do not undertake projects beyond their
financial capacity, which protects the public and subcontractors.
Question 3
Which Tennessee board issues and regulates the BC-B,C contractor
license?
A) Tennessee Real Estate Commission
B) Tennessee Board for Licensing Contractors
C) Tennessee Department of Labor
D) Tennessee Safety and Health Board
VERIFIED ANSWER: B) Tennessee Board for Licensing Contractors
Rationale: The Tennessee Board for Licensing Contractors, under the
Department of Commerce and Insurance, oversees all contractor
licensing, examinations, and disciplinary actions for classifications
including BC-B,C.
,Question 4
A contractor with a BC-B,C license wants to bid on
a 1,500,000industrialproject.Theirlicensehasamonetarylimitof1,500,000in
dustrialproject.Theirlicensehasamonetarylimitof750,000. What must they
do?
A) Bid anyway, as the limit is only a recommendation
B) Subcontract the entire project
C) Apply for an increase in their monetary limit before bidding
D) Split the project into two separate contracts
VERIFIED ANSWER: C) Apply for an increase in their monetary limit
before bidding
Rationale: Contractors cannot legally bid on or contract for work
exceeding their licensed monetary limit. They must submit a new financial
statement and request a limit increase from the Board prior to bidding.
Question 5
Which of the following is NOT typically required to obtain a BC-B,C license
in Tennessee?
A) Passing a trade exam
B) Proof of workers' compensation insurance
C) A bachelor's degree in construction management
D) Financial statement demonstrating net worth
, VERIFIED ANSWER: C) A bachelor's degree in construction
management
Rationale: Tennessee requires experience (4 years in past 10), exam
passage, insurance, and financial solvency, but does not mandate a
college degree.
Question 6
A BC-B,C licensed contractor may perform residential work under which
condition?
A) They also hold a residential license classification
B) The project is under $25,000
C) They notify the owner in writing
D) Never – the license is strictly commercial/industrial
VERIFIED ANSWER: A) They also hold a residential license
classification
Rationale: The BC-B,C classification does not cover residential
construction. Contractors must obtain a separate residential
classification (BC-A or BC-B) and pass the corresponding exam.
Question 7
The monetary limit on a BC-B,C license is based primarily on:
Practice Questions And Correct Answers (Verified Answers) Plus
Rationale 2026 Instant Download Pdf (GRUARANTEED PASS)
Question 1
A contractor bidding on a Tennessee commercial/industrial project must
ensure compliance with licensing requirements. Which of the following
best describes the limitation of a BC-B,C license classification?
A) It allows unrestricted residential construction only
B) It limits work strictly to electrical installations
C) It permits both commercial and industrial construction within the
monetary limits of the license
D) It allows only subcontracting work under a general contractor
VERIFIED ANSWER: C) It permits both commercial and industrial
construction within the monetary limits of the license
Rationale: The BC-B,C classification authorizes contractors to perform
both commercial and industrial construction projects, provided they
remain within their approved monetary limit as set by the Tennessee
Board for Licensing Contractors.
Question 2
In Tennessee, what is the primary purpose of requiring contractors to
maintain a monetary limit on their license?
,A) To determine tax liability
B) To ensure contractors only take projects they are financially capable
of completing
C) To restrict out-of-state contractors
D) To limit the number of projects per year
VERIFIED ANSWER: B) To ensure contractors only take projects they
are financially capable of completing
Rationale: The monetary limit is based on the contractor's net worth and
financial condition, ensuring they do not undertake projects beyond their
financial capacity, which protects the public and subcontractors.
Question 3
Which Tennessee board issues and regulates the BC-B,C contractor
license?
A) Tennessee Real Estate Commission
B) Tennessee Board for Licensing Contractors
C) Tennessee Department of Labor
D) Tennessee Safety and Health Board
VERIFIED ANSWER: B) Tennessee Board for Licensing Contractors
Rationale: The Tennessee Board for Licensing Contractors, under the
Department of Commerce and Insurance, oversees all contractor
licensing, examinations, and disciplinary actions for classifications
including BC-B,C.
,Question 4
A contractor with a BC-B,C license wants to bid on
a 1,500,000industrialproject.Theirlicensehasamonetarylimitof1,500,000in
dustrialproject.Theirlicensehasamonetarylimitof750,000. What must they
do?
A) Bid anyway, as the limit is only a recommendation
B) Subcontract the entire project
C) Apply for an increase in their monetary limit before bidding
D) Split the project into two separate contracts
VERIFIED ANSWER: C) Apply for an increase in their monetary limit
before bidding
Rationale: Contractors cannot legally bid on or contract for work
exceeding their licensed monetary limit. They must submit a new financial
statement and request a limit increase from the Board prior to bidding.
Question 5
Which of the following is NOT typically required to obtain a BC-B,C license
in Tennessee?
A) Passing a trade exam
B) Proof of workers' compensation insurance
C) A bachelor's degree in construction management
D) Financial statement demonstrating net worth
, VERIFIED ANSWER: C) A bachelor's degree in construction
management
Rationale: Tennessee requires experience (4 years in past 10), exam
passage, insurance, and financial solvency, but does not mandate a
college degree.
Question 6
A BC-B,C licensed contractor may perform residential work under which
condition?
A) They also hold a residential license classification
B) The project is under $25,000
C) They notify the owner in writing
D) Never – the license is strictly commercial/industrial
VERIFIED ANSWER: A) They also hold a residential license
classification
Rationale: The BC-B,C classification does not cover residential
construction. Contractors must obtain a separate residential
classification (BC-A or BC-B) and pass the corresponding exam.
Question 7
The monetary limit on a BC-B,C license is based primarily on:
