California Alarm Company Operator
Licensing Practice Exam
Questions & Answers with Rationales
study aid for individuals preparing for the California Bureau of Security and Investigative Services
(BSIS) Alarm Company Operator (ACO) and Alarm Company Qualified Manager (ACQ) qualifying
examination. It covers key concepts from the California Alarm Company Act (Business and
Professions Code, Division 3, Chapter 11.6, § 7590 et seq.) and Title 16 of the California Code of
Regulations.
,Section 1: Definitions & Scope of the Alarm Company Act
Q1. Under the California Alarm Company Act, an 'alarm company' is
best defined as a person who:
A. Only manufactures alarm equipment for wholesale distribution
B. Sells, installs, monitors, maintains, alters, services, or responds to
alarm systems for compensation
C. Sells burglar alarms exclusively over the internet with no local presence
D. Only provides consulting services on alarm system design
Correct Answer: B
Rationale: The Act defines an alarm company broadly to include any person
engaged, for compensation, in selling, installing, monitoring, maintaining,
altering, servicing, replacing, repairing, or responding to alarm systems.
Manufacturing alone, without these functions, does not by itself trigger
licensure.
Q2. Which agency licenses and regulates Alarm Company Operators in
California?
A. The Department of Consumer Affairs directly
B. The Contractors State License Board (CSLB)
C. The Bureau of Security and Investigative Services (BSIS)
D. The California Department of Justice
Correct Answer: C
Rationale: The Bureau of Security and Investigative Services (BSIS), a
bureau within the Department of Consumer Affairs, administers and
enforces the Alarm Company Act, including licensing of Alarm Company
Operators, Qualified Managers, and Alarm Agents.
Q3. A retail store that sells alarm systems only at its physical location
and does not install or service them:
A. Must always hold a full ACO license
B. May sell without an ACO license, but may not perform other alarm
company functions
C. Is completely exempt from all BSIS jurisdiction
, D. Must register each clerk as an alarm agent
Correct Answer: B
Rationale: Retail stores may sell alarm systems on their premises without an
ACO license, but they cross into licensed territory if they install, service,
monitor, or respond to alarms — those functions require licensure.
Q4. An out-of-state company that monitors alarm systems located in
California:
A. Is exempt because the monitoring center is outside California
B. Must still obtain a California ACO license
C. Only needs a local business permit
D. May operate under the alarm agent's registration alone
Correct Answer: B
Rationale: Any company monitoring systems physically located in California
must possess a BSIS ACO license, regardless of where the monitoring
station itself is located.
Q5. Which of the following would NOT be considered an 'alarm system'
function under the Act?
A. A closed-circuit television system used solely for employee training
review
B. A burglar alarm designed to signal unauthorized entry
C. A robbery alarm signaling a robbery in progress
D. A fire alarm system designed to signal a fire emergency
Correct Answer: A
Rationale: The Act's definition of alarm systems centers on devices
signaling burglary, robbery, or fire emergencies. A CCTV system used
purely for internal training with no emergency-signaling function falls outside
that definition.
Q6. The Alarm Company Act is codified primarily within which body of
California law?
A. The Penal Code
B. The Business and Professions Code
, C. The Civil Code
D. The Vehicle Code
Correct Answer: B
Rationale: The Alarm Company Act appears in the Business and
Professions Code, Division 3, Chapter 11.6, beginning at section 7590.
Implementing regulations are found in Title 16 of the California Code of
Regulations.
Q7. A 'branch office' of an ACO licensee is best described as:
A. Any residence of an alarm agent
B. A location, other than the principal place of business, from which alarm
company business is conducted and which requires its own certificate
C. A warehouse used only for equipment storage
D. A subcontractor's unrelated business
Correct Answer: B
Rationale: A branch office is a separate business location where the
licensee conducts alarm company operations; BSIS requires a Branch
Office Certificate for each such location beyond the main office.
Q8. Who is generally authorized to physically respond to an activated
alarm on behalf of a licensed alarm company?
A. Any employee of the company regardless of role
B. Only sworn peace officers
C. A registered alarm agent or a private patrol operator's security guard
D. The property owner's neighbor
Correct Answer: C
Rationale: Response to alarm activations must be performed by a registered
alarm agent employed by the licensed alarm company, or by a security
guard employed by a licensed private patrol operator.
Q9. Which entity would be exempt from the alarm company licensing
requirement?
A. A locksmith who also monitors burglar alarms for a fee
Licensing Practice Exam
Questions & Answers with Rationales
study aid for individuals preparing for the California Bureau of Security and Investigative Services
(BSIS) Alarm Company Operator (ACO) and Alarm Company Qualified Manager (ACQ) qualifying
examination. It covers key concepts from the California Alarm Company Act (Business and
Professions Code, Division 3, Chapter 11.6, § 7590 et seq.) and Title 16 of the California Code of
Regulations.
,Section 1: Definitions & Scope of the Alarm Company Act
Q1. Under the California Alarm Company Act, an 'alarm company' is
best defined as a person who:
A. Only manufactures alarm equipment for wholesale distribution
B. Sells, installs, monitors, maintains, alters, services, or responds to
alarm systems for compensation
C. Sells burglar alarms exclusively over the internet with no local presence
D. Only provides consulting services on alarm system design
Correct Answer: B
Rationale: The Act defines an alarm company broadly to include any person
engaged, for compensation, in selling, installing, monitoring, maintaining,
altering, servicing, replacing, repairing, or responding to alarm systems.
Manufacturing alone, without these functions, does not by itself trigger
licensure.
Q2. Which agency licenses and regulates Alarm Company Operators in
California?
A. The Department of Consumer Affairs directly
B. The Contractors State License Board (CSLB)
C. The Bureau of Security and Investigative Services (BSIS)
D. The California Department of Justice
Correct Answer: C
Rationale: The Bureau of Security and Investigative Services (BSIS), a
bureau within the Department of Consumer Affairs, administers and
enforces the Alarm Company Act, including licensing of Alarm Company
Operators, Qualified Managers, and Alarm Agents.
Q3. A retail store that sells alarm systems only at its physical location
and does not install or service them:
A. Must always hold a full ACO license
B. May sell without an ACO license, but may not perform other alarm
company functions
C. Is completely exempt from all BSIS jurisdiction
, D. Must register each clerk as an alarm agent
Correct Answer: B
Rationale: Retail stores may sell alarm systems on their premises without an
ACO license, but they cross into licensed territory if they install, service,
monitor, or respond to alarms — those functions require licensure.
Q4. An out-of-state company that monitors alarm systems located in
California:
A. Is exempt because the monitoring center is outside California
B. Must still obtain a California ACO license
C. Only needs a local business permit
D. May operate under the alarm agent's registration alone
Correct Answer: B
Rationale: Any company monitoring systems physically located in California
must possess a BSIS ACO license, regardless of where the monitoring
station itself is located.
Q5. Which of the following would NOT be considered an 'alarm system'
function under the Act?
A. A closed-circuit television system used solely for employee training
review
B. A burglar alarm designed to signal unauthorized entry
C. A robbery alarm signaling a robbery in progress
D. A fire alarm system designed to signal a fire emergency
Correct Answer: A
Rationale: The Act's definition of alarm systems centers on devices
signaling burglary, robbery, or fire emergencies. A CCTV system used
purely for internal training with no emergency-signaling function falls outside
that definition.
Q6. The Alarm Company Act is codified primarily within which body of
California law?
A. The Penal Code
B. The Business and Professions Code
, C. The Civil Code
D. The Vehicle Code
Correct Answer: B
Rationale: The Alarm Company Act appears in the Business and
Professions Code, Division 3, Chapter 11.6, beginning at section 7590.
Implementing regulations are found in Title 16 of the California Code of
Regulations.
Q7. A 'branch office' of an ACO licensee is best described as:
A. Any residence of an alarm agent
B. A location, other than the principal place of business, from which alarm
company business is conducted and which requires its own certificate
C. A warehouse used only for equipment storage
D. A subcontractor's unrelated business
Correct Answer: B
Rationale: A branch office is a separate business location where the
licensee conducts alarm company operations; BSIS requires a Branch
Office Certificate for each such location beyond the main office.
Q8. Who is generally authorized to physically respond to an activated
alarm on behalf of a licensed alarm company?
A. Any employee of the company regardless of role
B. Only sworn peace officers
C. A registered alarm agent or a private patrol operator's security guard
D. The property owner's neighbor
Correct Answer: C
Rationale: Response to alarm activations must be performed by a registered
alarm agent employed by the licensed alarm company, or by a security
guard employed by a licensed private patrol operator.
Q9. Which entity would be exempt from the alarm company licensing
requirement?
A. A locksmith who also monitors burglar alarms for a fee
