1|Page
LOUISIANA BUSINESS AND LAW EXAM LATEST 2026
ACTUAL EXAM WITH COMPLETE QUESTIONS AND
CORRECT DETAILED ANSWERS (100% VERIFIED
ANSWERS) |ALREADY GRADED A+
The purpose of the contractor licensing laws is to
......ANSWER......Protect the public from fraudulent contractors
Protect against inexperienced contractors
Protect the health, safety and general welfare of the public
Any construction project other than residential homes, a single
residential duplex, tri-plex, or four-plex. ......ANSWER......Commercial
project
A contractor is a person that works on a project valued at ______ or
more for commercial purposes other than residential duplexes, tri-
plexes or four-plexes. ......ANSWER......$50,000
A ___________ is the person who contracts directly with the owner.
......ANSWER......General contractor
pg. 1
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A contractor that works on a preexisting owner occupied building is
considered a _________ . ......ANSWER......Home improvement
contractor
A residential contractor is one who constructs a fixed structure when
the cost exceeds _________. ......ANSWER......$75,000
The state licensing board is comprised of ____ members.
......ANSWER......15
The board has the power to do any of the following EXCEPT:
......ANSWER......Sue unlicensed contractors
Licenses and renewals expire on _______. ......ANSWER......The
anniversary date the license was issued
An applicant must furnish the board with proof of financial
responsibility including proof of net worth of at least ______ .
......ANSWER......$10,000
Is an applicant permitted to furnish a bond in lieu of proof of net
worth? ......ANSWER......yes
pg. 2
, 3|Page
When a qualifying party of a construction company leaves
employment, the company has how many days to inform the board?
......ANSWER......30 days
A qualifying party can be which of the following: ......ANSWER......A
co-partner
A stockholder
An employee who has been with the company at least 120 days
All of the above
An owner of a property who is improving their home for their own use
does not have to have a license to do construction work.
......ANSWER......True
If you fail to comply with the rules of the board, you are subject to
revocation or suspension of your license. ......ANSWER......True
If you have been found guilty of violating the rules of the board more
than twice in one year, you will not be permitted to bid on a public
project for up to ____ years ......ANSWER......3
If a license has been denied by the board, the applicant has ____ to
appeal. ......ANSWER......6 months
pg. 3
LOUISIANA BUSINESS AND LAW EXAM LATEST 2026
ACTUAL EXAM WITH COMPLETE QUESTIONS AND
CORRECT DETAILED ANSWERS (100% VERIFIED
ANSWERS) |ALREADY GRADED A+
The purpose of the contractor licensing laws is to
......ANSWER......Protect the public from fraudulent contractors
Protect against inexperienced contractors
Protect the health, safety and general welfare of the public
Any construction project other than residential homes, a single
residential duplex, tri-plex, or four-plex. ......ANSWER......Commercial
project
A contractor is a person that works on a project valued at ______ or
more for commercial purposes other than residential duplexes, tri-
plexes or four-plexes. ......ANSWER......$50,000
A ___________ is the person who contracts directly with the owner.
......ANSWER......General contractor
pg. 1
,2|Page
A contractor that works on a preexisting owner occupied building is
considered a _________ . ......ANSWER......Home improvement
contractor
A residential contractor is one who constructs a fixed structure when
the cost exceeds _________. ......ANSWER......$75,000
The state licensing board is comprised of ____ members.
......ANSWER......15
The board has the power to do any of the following EXCEPT:
......ANSWER......Sue unlicensed contractors
Licenses and renewals expire on _______. ......ANSWER......The
anniversary date the license was issued
An applicant must furnish the board with proof of financial
responsibility including proof of net worth of at least ______ .
......ANSWER......$10,000
Is an applicant permitted to furnish a bond in lieu of proof of net
worth? ......ANSWER......yes
pg. 2
, 3|Page
When a qualifying party of a construction company leaves
employment, the company has how many days to inform the board?
......ANSWER......30 days
A qualifying party can be which of the following: ......ANSWER......A
co-partner
A stockholder
An employee who has been with the company at least 120 days
All of the above
An owner of a property who is improving their home for their own use
does not have to have a license to do construction work.
......ANSWER......True
If you fail to comply with the rules of the board, you are subject to
revocation or suspension of your license. ......ANSWER......True
If you have been found guilty of violating the rules of the board more
than twice in one year, you will not be permitted to bid on a public
project for up to ____ years ......ANSWER......3
If a license has been denied by the board, the applicant has ____ to
appeal. ......ANSWER......6 months
pg. 3
