Builders Exam Mi - Business and Law
Questions with Correct Answers
Which is not a requirement to obtain a builder's license? - CORRECT ANSWER -
Taking a builder's course and a one year apprenticeship.
If the license of the qualified officer, partner, trustee, director, officer, member, or person exercis
ing control of the corporation, partnership, or other association is revoked, or denied, the licens
e of the corporation, partnership or other association shall: - CORRECT ANSWER -be suspended
The following are exempt from licensure except: - CORRECT ANSWER -
a person working on one undertaking or project by one or more contracts in which the total con
tract price is more than $600.00
A residential builder or maintenance and alteration contractors license is not required if: -
CORRECT ANSWER -you are an officer of a court acting within the terms of the officer's office
What is considered a legitimate place of business for a licensed builder? - CORRECT ANSWER -
an actual established, physical location from which the builder can and does conduct business a
nd where books and records are kept
Who sets the standards of conduct, performance, qualifications and fitness of applicants, condu
cts investigations, settles complaints, and handles disciplinary procedures? -
CORRECT ANSWER -the board
A builder: - CORRECT ANSWER -
must display the licenses of his salespersons in his place of business
, Sole proprietors, corporations, LLCs and partnerships all have to purchase a license. What other
entities require the purchase of a license? - CORRECT ANSWER -
Salespersons, Qualifying officers of Corps, LLCs and Partnerships, All branch offices
Owners must make available a "Notice of Commencement" which will provide the correct infor
mation as to the owner or owners of a property and their correct addresses. If a contractor requ
ests a copy the owner must provide it within . - CORRECT ANSWER -10 days
If a license is suspended or revoked, the licensee must return it to the Department within: -
CORRECT ANSWER -10 days
The is a Michigan specific civil rights legislation. - CORRECT ANSWER -Elliott-
Larson Civil Rights Act
Houses built before typically have lead paint risk factors. - CORRECT ANSWER -1978
should be placed on top of the gravel base to prevent the radon gas from entering th
e house. - CORRECT ANSWER -heavy plastic sheeting
What business organization provides the most financial protection for the owners? -
CORRECT ANSWER -Corporation
A 50/50 partnership dissolves and one of the partners does not fulfill hisBresponsibility to pay of
f creditors. To what extent must the other partner contribute to this debt in order to keep his go
od name and standing? - CORRECT ANSWER -100%
An advantage that a Limited Liability Company has over a partnership is? - CORRECT ANSWER -
limited liability of the members
Questions with Correct Answers
Which is not a requirement to obtain a builder's license? - CORRECT ANSWER -
Taking a builder's course and a one year apprenticeship.
If the license of the qualified officer, partner, trustee, director, officer, member, or person exercis
ing control of the corporation, partnership, or other association is revoked, or denied, the licens
e of the corporation, partnership or other association shall: - CORRECT ANSWER -be suspended
The following are exempt from licensure except: - CORRECT ANSWER -
a person working on one undertaking or project by one or more contracts in which the total con
tract price is more than $600.00
A residential builder or maintenance and alteration contractors license is not required if: -
CORRECT ANSWER -you are an officer of a court acting within the terms of the officer's office
What is considered a legitimate place of business for a licensed builder? - CORRECT ANSWER -
an actual established, physical location from which the builder can and does conduct business a
nd where books and records are kept
Who sets the standards of conduct, performance, qualifications and fitness of applicants, condu
cts investigations, settles complaints, and handles disciplinary procedures? -
CORRECT ANSWER -the board
A builder: - CORRECT ANSWER -
must display the licenses of his salespersons in his place of business
, Sole proprietors, corporations, LLCs and partnerships all have to purchase a license. What other
entities require the purchase of a license? - CORRECT ANSWER -
Salespersons, Qualifying officers of Corps, LLCs and Partnerships, All branch offices
Owners must make available a "Notice of Commencement" which will provide the correct infor
mation as to the owner or owners of a property and their correct addresses. If a contractor requ
ests a copy the owner must provide it within . - CORRECT ANSWER -10 days
If a license is suspended or revoked, the licensee must return it to the Department within: -
CORRECT ANSWER -10 days
The is a Michigan specific civil rights legislation. - CORRECT ANSWER -Elliott-
Larson Civil Rights Act
Houses built before typically have lead paint risk factors. - CORRECT ANSWER -1978
should be placed on top of the gravel base to prevent the radon gas from entering th
e house. - CORRECT ANSWER -heavy plastic sheeting
What business organization provides the most financial protection for the owners? -
CORRECT ANSWER -Corporation
A 50/50 partnership dissolves and one of the partners does not fulfill hisBresponsibility to pay of
f creditors. To what extent must the other partner contribute to this debt in order to keep his go
od name and standing? - CORRECT ANSWER -100%
An advantage that a Limited Liability Company has over a partnership is? - CORRECT ANSWER -
limited liability of the members
