SOUTH CAROLINA SC BUSINESS
MANAGEMENT AND LAW EXAM 2026
COMPLETE PRACTICE QUESTIONS,
VERIFIED CORRECT ANSWERS AND
COMPREHENSIVE CONTRACTOR
LICENSE STUDY GUIDE
With a residential builders license, a builder can do commercial
construction up to _______value - CORRECT ANSWER -$5000
After the initial appointment of the board by the governor, the members for
the residential board, she'll be appointed for ____ year terms - CORRECT
ANSWER -4
Any residential construction over _______requires a AThe single most
important thing one can do in starting a business is to do which of the
following: - CORRECT ANSWER -Write a business plan
Which form of business is the easiest to establish and terminate, but has
the liability? - CORRECT ANSWER -Sole proprietorship
What type of organization should be formed to avoid double taxation on
income? - CORRECT ANSWER -S Corporation
,Insurance is a contractors protection against what? - CORRECT ANSWER -
Risk
What type of insurance does a contractor need for protection against claims
for Bodily injury to anyone NOT employed with your company? - CORRECT
ANSWER -Liability
Which of the following best describes contractor liability insurance? -
CORRECT ANSWER -An insurance policy designed to protect the contractor
against claims brought by third parties.
Who is protected by the Comprehensive General Liability Insurance? -
CORRECT ANSWER -The name insured (builder)
If an employee earns $10.00 per hour for a 50 hour work week, how much
is the over-time premium? - CORRECT ANSWER -$50.00
If an employee quits working before the end of the year, you may give him
form w-2 any time after employment ends, but not later than _______ of
the following year. - CORRECT ANSWER -January 31
What type of insurance is needed to protect portions of the construction
project that has been completed? - CORRECT ANSWER -Builders risk.
, Workman's compensation insurance protects ________. - CORRECT
ANSWER -Employer
What is the purpose of workman's compensation insurance - CORRECT
ANSWER -To cover employee
A three party agreement that guarantees that the contractor will perform
work in accordance with the contract and pay off all construction costs is
what? - CORRECT ANSWER -Contract bond
The maximum bond amounts for a single project are usually limited to
what amount? - CORRECT ANSWER -10 times the contractors working
capital
The ability of the contractor to obtain bonds are all of the following except:
- CORRECT ANSWER -Knowledge of the staff
What type of bond guarantees to the owner, that's the project will be
completed according to the plans, specifications, terms, and conditions of
the contract? - CORRECT ANSWER -Performance bond
What method of estimating is an accurate method that lists all the materials
and labor needed - CORRECT ANSWER -Quantity survey method
The most difficult aspect of the estimating process is - CORRECT ANSWER -
Labor cost
MANAGEMENT AND LAW EXAM 2026
COMPLETE PRACTICE QUESTIONS,
VERIFIED CORRECT ANSWERS AND
COMPREHENSIVE CONTRACTOR
LICENSE STUDY GUIDE
With a residential builders license, a builder can do commercial
construction up to _______value - CORRECT ANSWER -$5000
After the initial appointment of the board by the governor, the members for
the residential board, she'll be appointed for ____ year terms - CORRECT
ANSWER -4
Any residential construction over _______requires a AThe single most
important thing one can do in starting a business is to do which of the
following: - CORRECT ANSWER -Write a business plan
Which form of business is the easiest to establish and terminate, but has
the liability? - CORRECT ANSWER -Sole proprietorship
What type of organization should be formed to avoid double taxation on
income? - CORRECT ANSWER -S Corporation
,Insurance is a contractors protection against what? - CORRECT ANSWER -
Risk
What type of insurance does a contractor need for protection against claims
for Bodily injury to anyone NOT employed with your company? - CORRECT
ANSWER -Liability
Which of the following best describes contractor liability insurance? -
CORRECT ANSWER -An insurance policy designed to protect the contractor
against claims brought by third parties.
Who is protected by the Comprehensive General Liability Insurance? -
CORRECT ANSWER -The name insured (builder)
If an employee earns $10.00 per hour for a 50 hour work week, how much
is the over-time premium? - CORRECT ANSWER -$50.00
If an employee quits working before the end of the year, you may give him
form w-2 any time after employment ends, but not later than _______ of
the following year. - CORRECT ANSWER -January 31
What type of insurance is needed to protect portions of the construction
project that has been completed? - CORRECT ANSWER -Builders risk.
, Workman's compensation insurance protects ________. - CORRECT
ANSWER -Employer
What is the purpose of workman's compensation insurance - CORRECT
ANSWER -To cover employee
A three party agreement that guarantees that the contractor will perform
work in accordance with the contract and pay off all construction costs is
what? - CORRECT ANSWER -Contract bond
The maximum bond amounts for a single project are usually limited to
what amount? - CORRECT ANSWER -10 times the contractors working
capital
The ability of the contractor to obtain bonds are all of the following except:
- CORRECT ANSWER -Knowledge of the staff
What type of bond guarantees to the owner, that's the project will be
completed according to the plans, specifications, terms, and conditions of
the contract? - CORRECT ANSWER -Performance bond
What method of estimating is an accurate method that lists all the materials
and labor needed - CORRECT ANSWER -Quantity survey method
The most difficult aspect of the estimating process is - CORRECT ANSWER -
Labor cost
