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Utah (UT) B100 General Building Contractor
License Exam | Latest Verified Questions and
Detailed Answers
OVERVIEW DESCRIPTION:
This Comprehensive set of multiple choice questions is designed for the Utah B100 General
Building Contractor license exam, specifically the open-book Utah Contractor Business and
Law Exam required for B100 licensure (the trade exam is waived). It assesses knowledge
across key areas including business organizations, Utah Division of Occupational and
Professional Licensing (DOPL) licensing requirements, estimating and bidding, contract
management, project management, labor laws, Utah mechanics’ lien statutes, financial
management, risk management and OSHA safety, and state and federal tax obligations for
contractors. The questions are structured to evaluate a candidate’s ability to apply Utah-
specific legal, business, and construction management principles in real-world contracting
contexts.
QUESTION 1
Which of the following business entity types provides owners with limited liability and
pass-through taxation by default?
A. Sole proprietorship
B. General partnership
C. S corporation
D. C corporation
CORRECT ANSWER: C. S corporation
EXPERT RATIONALE: An S corporation provides limited liability and pass-through
taxation to shareholders. A C corporation is subject to entity-level tax, while sole
proprietorships and general partnerships lack limited liability.
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QUESTION 2
Which entity is formed by filing articles of organization with the Utah Division of
Corporations and Commercial Code?
A. Corporation
B. Limited liability company
C. Sole proprietorship
D. General partnership
CORRECT ANSWER: B. Limited liability company
EXPERT RATIONALE: LLCs are created by filing articles of organization. Corporations file
articles of incorporation.
QUESTION 3
Which business structure generally exposes the owner to unlimited personal liability for
business debts?
A. LLC
B. Corporation
C. Sole proprietorship
D. S corporation
CORRECT ANSWER: C. Sole proprietorship
EXPERT RATIONALE: A sole proprietorship is not a separate legal entity, so the owner
bears unlimited personal liability. LLCs and corporations provide limited liability.
QUESTION 4
A general partnership is generally formed when:
A. Articles are filed with DOPL
B. Two or more persons carry on a business for profit, with no required state filing
C. Stock is issued to shareholders
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D. Articles of organization are filed
CORRECT ANSWER: B. Two or more persons carry on a business for profit, with no
required state filing
EXPERT RATIONALE: A general partnership arises from the parties’ conduct of business
for profit. No formal filing is required to create it.
QUESTION 5
Which document primarily governs the internal affairs of a corporation?
A. Bylaws
B. Articles of organization
C. Partnership agreement
D. Lien waiver
CORRECT ANSWER: A. Bylaws
EXPERT RATIONALE: Corporate bylaws set out board, officer, and shareholder rules.
Articles of organization are for LLCs.
QUESTION 6
In Utah, a corporation must file its annual renewal with:
A. The IRS
B. The Utah Division of Corporations and Commercial Code
C. DOPL
D. OSHA
CORRECT ANSWER: B. The Utah Division of Corporations and Commercial Code
EXPERT RATIONALE: The Division of Corporations and Commercial Code handles
business entity filings and annual renewals. DOPL handles contractor licensing.
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QUESTION 7
A registered agent in Utah must:
A. Be a licensed contractor
B. Reside in Utah or maintain a physical street address in Utah
C. Be a corporate officer
D. Sign all construction contracts
CORRECT ANSWER: B. Reside in Utah or maintain a physical street address in Utah
EXPERT RATIONALE: The registered agent must be available at a Utah physical address
to accept legal service. A post office box alone is insufficient.
QUESTION 8
Which entity is generally required to hold annual shareholder meetings?
A. LLC
B. Corporation
C. Sole proprietorship
D. General partnership
CORRECT ANSWER: B. Corporation
EXPERT RATIONALE: Corporations must observe formalities such as annual shareholder
meetings. LLCs, partnerships, and sole proprietorships are more flexible.
QUESTION 9
“Piercing the corporate veil” refers to:
A. Selling corporate shares
B. Holding shareholders personally liable because corporate formalities were ignored
C. Dissolving a corporation
D. Merging two companies
Utah (UT) B100 General Building Contractor
License Exam | Latest Verified Questions and
Detailed Answers
OVERVIEW DESCRIPTION:
This Comprehensive set of multiple choice questions is designed for the Utah B100 General
Building Contractor license exam, specifically the open-book Utah Contractor Business and
Law Exam required for B100 licensure (the trade exam is waived). It assesses knowledge
across key areas including business organizations, Utah Division of Occupational and
Professional Licensing (DOPL) licensing requirements, estimating and bidding, contract
management, project management, labor laws, Utah mechanics’ lien statutes, financial
management, risk management and OSHA safety, and state and federal tax obligations for
contractors. The questions are structured to evaluate a candidate’s ability to apply Utah-
specific legal, business, and construction management principles in real-world contracting
contexts.
QUESTION 1
Which of the following business entity types provides owners with limited liability and
pass-through taxation by default?
A. Sole proprietorship
B. General partnership
C. S corporation
D. C corporation
CORRECT ANSWER: C. S corporation
EXPERT RATIONALE: An S corporation provides limited liability and pass-through
taxation to shareholders. A C corporation is subject to entity-level tax, while sole
proprietorships and general partnerships lack limited liability.
,2|Page
QUESTION 2
Which entity is formed by filing articles of organization with the Utah Division of
Corporations and Commercial Code?
A. Corporation
B. Limited liability company
C. Sole proprietorship
D. General partnership
CORRECT ANSWER: B. Limited liability company
EXPERT RATIONALE: LLCs are created by filing articles of organization. Corporations file
articles of incorporation.
QUESTION 3
Which business structure generally exposes the owner to unlimited personal liability for
business debts?
A. LLC
B. Corporation
C. Sole proprietorship
D. S corporation
CORRECT ANSWER: C. Sole proprietorship
EXPERT RATIONALE: A sole proprietorship is not a separate legal entity, so the owner
bears unlimited personal liability. LLCs and corporations provide limited liability.
QUESTION 4
A general partnership is generally formed when:
A. Articles are filed with DOPL
B. Two or more persons carry on a business for profit, with no required state filing
C. Stock is issued to shareholders
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D. Articles of organization are filed
CORRECT ANSWER: B. Two or more persons carry on a business for profit, with no
required state filing
EXPERT RATIONALE: A general partnership arises from the parties’ conduct of business
for profit. No formal filing is required to create it.
QUESTION 5
Which document primarily governs the internal affairs of a corporation?
A. Bylaws
B. Articles of organization
C. Partnership agreement
D. Lien waiver
CORRECT ANSWER: A. Bylaws
EXPERT RATIONALE: Corporate bylaws set out board, officer, and shareholder rules.
Articles of organization are for LLCs.
QUESTION 6
In Utah, a corporation must file its annual renewal with:
A. The IRS
B. The Utah Division of Corporations and Commercial Code
C. DOPL
D. OSHA
CORRECT ANSWER: B. The Utah Division of Corporations and Commercial Code
EXPERT RATIONALE: The Division of Corporations and Commercial Code handles
business entity filings and annual renewals. DOPL handles contractor licensing.
, 4|Page
QUESTION 7
A registered agent in Utah must:
A. Be a licensed contractor
B. Reside in Utah or maintain a physical street address in Utah
C. Be a corporate officer
D. Sign all construction contracts
CORRECT ANSWER: B. Reside in Utah or maintain a physical street address in Utah
EXPERT RATIONALE: The registered agent must be available at a Utah physical address
to accept legal service. A post office box alone is insufficient.
QUESTION 8
Which entity is generally required to hold annual shareholder meetings?
A. LLC
B. Corporation
C. Sole proprietorship
D. General partnership
CORRECT ANSWER: B. Corporation
EXPERT RATIONALE: Corporations must observe formalities such as annual shareholder
meetings. LLCs, partnerships, and sole proprietorships are more flexible.
QUESTION 9
“Piercing the corporate veil” refers to:
A. Selling corporate shares
B. Holding shareholders personally liable because corporate formalities were ignored
C. Dissolving a corporation
D. Merging two companies
