Builders License Practice Questions
with Correct Answers
How long is a passing score on an examination valid for? - CORRECT ANSWER -1 Year
How many hours of approved prelicensure courses are required for residential builders and resi
dential maintenance and alteration contractors? - CORRECT ANSWER -60
Which act is a Michigan enacted act that prohibits discrimination and has been amended appro
ximately 20 times since inception? - CORRECT ANSWER -Elliot-Larson Civil Rights Act
How many residential builders or residential maintenance and alteration contractors may a sale
sperson be licensed to be employed by? - CORRECT ANSWER -1
A complaint shall be made within months after the latest of the listed events or situations
. - CORRECT ANSWER -18 months
Which act was passed in 1990 and was the first federal statute that expanded civil rights protect
ions to people with disabilities? - CORRECT ANSWER -Americans with Disabilities Act (ADA)
What is a design or build contract? - CORRECT ANSWER -
A kind of contract where the owner contracts with one company to complete a construction pro
ject from start to finish (cradle to the grave)
What is a hybrid business structure that shares similarities with sole proprietorships as well as c
orporate structures? - CORRECT ANSWER -Limited Liability Company (LLC)
,The general or prime contractor generally enters into a contract to begin the project with: -
CORRECT ANSWER -The Owner
What is a breach of Contract? - CORRECT ANSWER -
When one of the participants involved in an agreement (contract) does notBsatisfy any terms or
conditions of the contract
What is a material breach? - CORRECT ANSWER -
A serious violation of a contract that could void the contract and has a high likelihood of litigatio
n
What includes guiding and coordinating each part of the project from concept to completion? -
CORRECT ANSWER -Project Management
What confirms work is performed according to contract specifications? - CORRECT ANSWER -
Quality Control
What is the simplest type of scheduling? - CORRECT ANSWER -Calendar Scheduling
Which method of accounting is preferred by accountants and contractors, and is the most accur
ate? - CORRECT ANSWER -Accrual Method
Which form needs to be completed within 3 days of hire to verify the identity and employment
authorization of individuals? - CORRECT ANSWER -I-9
Which form lets you know how much income taxBto withhold from employees' wages? -
CORRECT ANSWER -W-4
What type of insurance is also called defense coverage? - CORRECT ANSWER -Liability Insurance
, What is a performance bond? - CORRECT ANSWER -
Assures that the contractor will complete a contract within its time frame and conditions
What is a surety bond? - CORRECT ANSWER -
A procedure to transfer risk between a contractor, surety bonding company, and the project ow
ner
What type of insurance pays you if you are hurt on the job? - CORRECT ANSWER -
Disability Insurance
What types of things are covered by Professional Liability insurance? - CORRECT ANSWER -
Failure to deliver promised services
Negligence in providing services
Errors and Oversights
(All of the above)
What is defined as the forecasting and evaluation of financial risks together with the identificati
on of procedures or avoid or minimize their impact? - CORRECT ANSWER -Risk Management
Payroll records shall be maintained for no less than____ years. - CORRECT ANSWER -3
Employers with or more individuals that work in the United States, or any territory of the
United States, are covered by the Paid Medical Leave Act. - CORRECT ANSWER -50
Which exposure category includes urban and suburban areas, wooded areas, or other terrain wi
th numerous closely spaced obstructions having the size of single-family dwellings or larger? -
CORRECT ANSWER -Exposure B
with Correct Answers
How long is a passing score on an examination valid for? - CORRECT ANSWER -1 Year
How many hours of approved prelicensure courses are required for residential builders and resi
dential maintenance and alteration contractors? - CORRECT ANSWER -60
Which act is a Michigan enacted act that prohibits discrimination and has been amended appro
ximately 20 times since inception? - CORRECT ANSWER -Elliot-Larson Civil Rights Act
How many residential builders or residential maintenance and alteration contractors may a sale
sperson be licensed to be employed by? - CORRECT ANSWER -1
A complaint shall be made within months after the latest of the listed events or situations
. - CORRECT ANSWER -18 months
Which act was passed in 1990 and was the first federal statute that expanded civil rights protect
ions to people with disabilities? - CORRECT ANSWER -Americans with Disabilities Act (ADA)
What is a design or build contract? - CORRECT ANSWER -
A kind of contract where the owner contracts with one company to complete a construction pro
ject from start to finish (cradle to the grave)
What is a hybrid business structure that shares similarities with sole proprietorships as well as c
orporate structures? - CORRECT ANSWER -Limited Liability Company (LLC)
,The general or prime contractor generally enters into a contract to begin the project with: -
CORRECT ANSWER -The Owner
What is a breach of Contract? - CORRECT ANSWER -
When one of the participants involved in an agreement (contract) does notBsatisfy any terms or
conditions of the contract
What is a material breach? - CORRECT ANSWER -
A serious violation of a contract that could void the contract and has a high likelihood of litigatio
n
What includes guiding and coordinating each part of the project from concept to completion? -
CORRECT ANSWER -Project Management
What confirms work is performed according to contract specifications? - CORRECT ANSWER -
Quality Control
What is the simplest type of scheduling? - CORRECT ANSWER -Calendar Scheduling
Which method of accounting is preferred by accountants and contractors, and is the most accur
ate? - CORRECT ANSWER -Accrual Method
Which form needs to be completed within 3 days of hire to verify the identity and employment
authorization of individuals? - CORRECT ANSWER -I-9
Which form lets you know how much income taxBto withhold from employees' wages? -
CORRECT ANSWER -W-4
What type of insurance is also called defense coverage? - CORRECT ANSWER -Liability Insurance
, What is a performance bond? - CORRECT ANSWER -
Assures that the contractor will complete a contract within its time frame and conditions
What is a surety bond? - CORRECT ANSWER -
A procedure to transfer risk between a contractor, surety bonding company, and the project ow
ner
What type of insurance pays you if you are hurt on the job? - CORRECT ANSWER -
Disability Insurance
What types of things are covered by Professional Liability insurance? - CORRECT ANSWER -
Failure to deliver promised services
Negligence in providing services
Errors and Oversights
(All of the above)
What is defined as the forecasting and evaluation of financial risks together with the identificati
on of procedures or avoid or minimize their impact? - CORRECT ANSWER -Risk Management
Payroll records shall be maintained for no less than____ years. - CORRECT ANSWER -3
Employers with or more individuals that work in the United States, or any territory of the
United States, are covered by the Paid Medical Leave Act. - CORRECT ANSWER -50
Which exposure category includes urban and suburban areas, wooded areas, or other terrain wi
th numerous closely spaced obstructions having the size of single-family dwellings or larger? -
CORRECT ANSWER -Exposure B
