NCLBGC – Business and Law Examination
(Required for All Contractor Classifications)
Questions and Correct Answers (Verified Answers)
Plus Rationale 2027 Q&A| Instant Download Pdf
1. Under North Carolina law, when is a general contractor license
generally required for a construction project?
A. When the project exceeds $10,000
B. When the project exceeds $25,000
C. When the project is valued at $40,000 or more
D. Only when the project is publicly funded
Answer: C. When the project is valued at $40,000 or more
Rationale: North Carolina generally requires a general contractor
license when a person, firm, or corporation undertakes to bid upon,
construct, manage, or superintend a building, highway, public utility,
grading, improvement, or structure with a cost of $40,000 or more.
The threshold is established by G.S. 87-1.
, 2. Which agency is responsible for licensing general contractors in
North Carolina?
A. North Carolina Department of Revenue
B. North Carolina Licensing Board for General Contractors
C. North Carolina Department of Labor
D. North Carolina Building Code Council
Answer: B. North Carolina Licensing Board for General Contractors
Rationale: The North Carolina Licensing Board for General Contractors
administers the licensing requirements applicable to general
contractors and is charged with safeguarding life, health, and
property and promoting public welfare.
3. What is the minimum age generally required for an applicant
seeking a North Carolina general contractor license?
A. 16
B. 18
C. 21
D. 25
Answer: B. 18
,Rationale: An applicant must be at least 18 years of age before being
entitled to an examination for a North Carolina general contractor
license.
4. Which of the following is a basic requirement for a North Carolina
general contractor license applicant?
A. Membership in a construction trade association
B. Ownership of construction equipment
C. Good moral character
D. Five employees on payroll
Answer: C. Good moral character
Rationale: North Carolina licensing requirements include being at
least 18 years old, possessing good moral character as determined by
the Board, demonstrating financial responsibility, submitting the
required application and fee, and satisfying applicable background-
check requirements.
5. What is the primary purpose of the license limitation on a North
Carolina general contractor license?
A. To determine the geographic area where the contractor may work
B. To determine the maximum dollar value of a single project
, C. To determine the number of employees a contractor may hire
D. To determine the contractor's tax classification
Answer: B. To determine the maximum dollar value of a single project
Rationale: North Carolina separates license limitations from
classifications. The limitation establishes the dollar size of projects
that the licensee may undertake, while the classification determines
the type of construction work that may be performed.
6. What is the maximum single-project value generally permitted
under a Limited license?
A. $500,000
B. $750,000
C. $1,000,000
D. $1,500,000
Answer: B. $750,000
Rationale: A Limited license permits the holder to act as general
contractor on a single project with a value of up to $750,000,
excluding the cost of land and certain ancillary land-improvement
costs.
7. What is the maximum single-project value generally permitted
under an Intermediate license?
(Required for All Contractor Classifications)
Questions and Correct Answers (Verified Answers)
Plus Rationale 2027 Q&A| Instant Download Pdf
1. Under North Carolina law, when is a general contractor license
generally required for a construction project?
A. When the project exceeds $10,000
B. When the project exceeds $25,000
C. When the project is valued at $40,000 or more
D. Only when the project is publicly funded
Answer: C. When the project is valued at $40,000 or more
Rationale: North Carolina generally requires a general contractor
license when a person, firm, or corporation undertakes to bid upon,
construct, manage, or superintend a building, highway, public utility,
grading, improvement, or structure with a cost of $40,000 or more.
The threshold is established by G.S. 87-1.
, 2. Which agency is responsible for licensing general contractors in
North Carolina?
A. North Carolina Department of Revenue
B. North Carolina Licensing Board for General Contractors
C. North Carolina Department of Labor
D. North Carolina Building Code Council
Answer: B. North Carolina Licensing Board for General Contractors
Rationale: The North Carolina Licensing Board for General Contractors
administers the licensing requirements applicable to general
contractors and is charged with safeguarding life, health, and
property and promoting public welfare.
3. What is the minimum age generally required for an applicant
seeking a North Carolina general contractor license?
A. 16
B. 18
C. 21
D. 25
Answer: B. 18
,Rationale: An applicant must be at least 18 years of age before being
entitled to an examination for a North Carolina general contractor
license.
4. Which of the following is a basic requirement for a North Carolina
general contractor license applicant?
A. Membership in a construction trade association
B. Ownership of construction equipment
C. Good moral character
D. Five employees on payroll
Answer: C. Good moral character
Rationale: North Carolina licensing requirements include being at
least 18 years old, possessing good moral character as determined by
the Board, demonstrating financial responsibility, submitting the
required application and fee, and satisfying applicable background-
check requirements.
5. What is the primary purpose of the license limitation on a North
Carolina general contractor license?
A. To determine the geographic area where the contractor may work
B. To determine the maximum dollar value of a single project
, C. To determine the number of employees a contractor may hire
D. To determine the contractor's tax classification
Answer: B. To determine the maximum dollar value of a single project
Rationale: North Carolina separates license limitations from
classifications. The limitation establishes the dollar size of projects
that the licensee may undertake, while the classification determines
the type of construction work that may be performed.
6. What is the maximum single-project value generally permitted
under a Limited license?
A. $500,000
B. $750,000
C. $1,000,000
D. $1,500,000
Answer: B. $750,000
Rationale: A Limited license permits the holder to act as general
contractor on a single project with a value of up to $750,000,
excluding the cost of land and certain ancillary land-improvement
costs.
7. What is the maximum single-project value generally permitted
under an Intermediate license?
