VIRGINIA CBC COMMERCIAL
BUILDING CONTRACTOR EXAM
TEST PAPER QUESTIONS
SOLUTIONS GRADED A+
◉ What are some of the disadvantages of a Sole Proprietor? Answer:
Less Available capital
Unlimited Personal Liability
Possible difficulty obtaining long term financing
dissolution of the business in the event of the owner's death
◉ This is the relationship between two or more persons who join to
carry on a trade or business. Each person contributes money,
property,labor, or skill and each partner expects to share in the
profits and losses of the business. Answer: Is classified as a
Partnership
◉ What are the two different types of partnerships? Answer:
General Partnership & Limited Partnership
◉ This partnership consists of one or more general partners and
one or more limited partners. Limited partners have limited Liability
in the company. In this partnership the partners have no personal
liability for the business partnership. They are liable only for the
,previously agreed-upon contribution to or investment in the
business. Answer: Limited Partnership
◉ This partnership consists of general partners that own the assets
of the company just as individual own assets in a sole
proprietorship. In this partnership all owners have personal and
unlimited liability for all actions undertaken in the name of the
business including debt. Each partner is responsible for the acts of
others partners when they act in the name of the business. Answer:
General Partnership
◉ What are some of the disadvantages of a general partnership?
Answer: Unlimited personal Liability of general Partners
Multiple Decision Makers
Limited lIfe of the Business
Changes of partners or partnership agreement may be difficult
Partnership dissolves in the event of the death of a general Partner
◉ The Virginia State statute requires that prior to a joint venture
engaging in or offering to engage in contracting work in Virginia
Answer: Each contracting party of the joint venture shall be properly
licensed under the Virginia licensing law or a proper contractor's
license shall be obtained in the name of the joint venture.
,◉ What is a joint venture? Answer: This is a special business
arrangement that exists when two or more companies joint
undertake a specific project.
◉ What is the purpose of Licensing & why is it required? Answer: A
major purpose of licensing is to protect the health, safety, and
welfare of the public. Licensing establishes entrance requirements
standards of practice and disciplinary authority to protect the public
from unqualified incompetent and unethical contractors.
◉ It was established to regulate businesses that construct or
improve facilities on property owned by others. Answer: Virginia
Board for Contractors
◉ The Board is composed of 15 governor-appointed members who
serve 4 years and includes what? Answer: - Seven Licensed
Contractor members
- 3 representatives from the tradesman Licensure Program
-one local building official member
◉ What is one of the exemptions that exists in the virginia Licensing
law? Answer: Any material supplier who renders advice concerning
use of products sold and who does not provide construction or
installation services.
, ◉ What is the total value of a single contract or project for a License
Class A? Answer: $120,000 or More for a single contract or project
◉ What is the total value of all projects in 12 month period for a
class A license class? Answer: $750,000 or More
◉ How are license classes determined? Answer: License classes are
determined by Net Worth.
◉ The specific minimum net worth requirements for class A is
Answer: $45,000 or more
◉ The specific minimum net worth requirements for class B is
Answer: $15,000 or more
◉ The specific minimum net worth requirements for class C is
Answer: No net worth requirement
◉ How long is the original license issued for? Answer: Orginal
Licenses expired two years from the last day of the month in which
they were issued.
◉ What must you do to renew your license? Answer: To renew the
license, the license holder must file a completed renewal form and
BUILDING CONTRACTOR EXAM
TEST PAPER QUESTIONS
SOLUTIONS GRADED A+
◉ What are some of the disadvantages of a Sole Proprietor? Answer:
Less Available capital
Unlimited Personal Liability
Possible difficulty obtaining long term financing
dissolution of the business in the event of the owner's death
◉ This is the relationship between two or more persons who join to
carry on a trade or business. Each person contributes money,
property,labor, or skill and each partner expects to share in the
profits and losses of the business. Answer: Is classified as a
Partnership
◉ What are the two different types of partnerships? Answer:
General Partnership & Limited Partnership
◉ This partnership consists of one or more general partners and
one or more limited partners. Limited partners have limited Liability
in the company. In this partnership the partners have no personal
liability for the business partnership. They are liable only for the
,previously agreed-upon contribution to or investment in the
business. Answer: Limited Partnership
◉ This partnership consists of general partners that own the assets
of the company just as individual own assets in a sole
proprietorship. In this partnership all owners have personal and
unlimited liability for all actions undertaken in the name of the
business including debt. Each partner is responsible for the acts of
others partners when they act in the name of the business. Answer:
General Partnership
◉ What are some of the disadvantages of a general partnership?
Answer: Unlimited personal Liability of general Partners
Multiple Decision Makers
Limited lIfe of the Business
Changes of partners or partnership agreement may be difficult
Partnership dissolves in the event of the death of a general Partner
◉ The Virginia State statute requires that prior to a joint venture
engaging in or offering to engage in contracting work in Virginia
Answer: Each contracting party of the joint venture shall be properly
licensed under the Virginia licensing law or a proper contractor's
license shall be obtained in the name of the joint venture.
,◉ What is a joint venture? Answer: This is a special business
arrangement that exists when two or more companies joint
undertake a specific project.
◉ What is the purpose of Licensing & why is it required? Answer: A
major purpose of licensing is to protect the health, safety, and
welfare of the public. Licensing establishes entrance requirements
standards of practice and disciplinary authority to protect the public
from unqualified incompetent and unethical contractors.
◉ It was established to regulate businesses that construct or
improve facilities on property owned by others. Answer: Virginia
Board for Contractors
◉ The Board is composed of 15 governor-appointed members who
serve 4 years and includes what? Answer: - Seven Licensed
Contractor members
- 3 representatives from the tradesman Licensure Program
-one local building official member
◉ What is one of the exemptions that exists in the virginia Licensing
law? Answer: Any material supplier who renders advice concerning
use of products sold and who does not provide construction or
installation services.
, ◉ What is the total value of a single contract or project for a License
Class A? Answer: $120,000 or More for a single contract or project
◉ What is the total value of all projects in 12 month period for a
class A license class? Answer: $750,000 or More
◉ How are license classes determined? Answer: License classes are
determined by Net Worth.
◉ The specific minimum net worth requirements for class A is
Answer: $45,000 or more
◉ The specific minimum net worth requirements for class B is
Answer: $15,000 or more
◉ The specific minimum net worth requirements for class C is
Answer: No net worth requirement
◉ How long is the original license issued for? Answer: Orginal
Licenses expired two years from the last day of the month in which
they were issued.
◉ What must you do to renew your license? Answer: To renew the
license, the license holder must file a completed renewal form and
