SOUTH CAROLINA CONTRACTOR BUSINESS AND
LAW EXAM NEWEST 2026/ 2027 TEST BANK /
CONTRACTOR BUSINESS AND LAW EXAM PREP
WITH COMPLETE 300 REAL EXAM QUESTIONS AND
CORRECT VERIFIED ANSWERS/ ALREADY GRADED
A+ (MOST RECENT!!)
A commercial contractor is applying for a South Carolina General
Contractor license. Which individual must be designated for each
requested classification?
A. Project manager
B. Primary Qualifying Party
C. Registered agent
D. Financial officer - Correct Answer - B
South Carolina requires a Primary Qualifying Party (PQP) for each
classification or subclassification requested.
A contractor applies for a Group 2 General Contractor license. Which
financial measure satisfies the working-capital requirement?
A. $20,000
B. $30,000
C. $40,000
D. $60,000 - Correct Answer - C
Group 2 requires $40,000 in working capital.
pg. 1
,A Group 3 contractor wants to increase the firm's license limitation
using a surety bond rather than a financial statement. What bond amount
applies?
A. $60,000
B. $100,000
C. $150,000
D. $250,000 - Correct Answer: C
A South Carolina General Contractor Group 3 license requires a
$150,000 surety bond when using the bond option.
A contractor's financial statement shows $90,000 in working capital.
Which General Contractor group does that amount support based solely
on working capital?
A. Group 1
B. Group 2
C. Group 3
D. Group 4 - Correct Answer - B
Group 2 requires $40,000, while Group 3 requires $100,000 in working
capital.
A South Carolina contractor has passed the required technical
examination and wants PQP certification. Which additional examination
is required?
A. Federal tax exam
B. Business Management and Law exam
C. OSHA certification exam
D. Building-code exam - Correct Answer: B
pg. 2
,PQP/QP applicants must pass the South Carolina Business Management
and Law examination in addition to applicable technical requirements.
A contractor is preparing a bid and discovers that the estimated labor
cost was understated by $18,000. What should be reviewed first?
A. Job-cost estimate
B. Surety bond
C. Lien waiver
D. Payroll tax return - Correct Answer - A
The estimate should be reconciled against labor quantities, rates, and
assumptions before the bid is finalized.
A subcontractor begins additional work after receiving only a verbal
instruction from the superintendent. The written contract requires
approved change orders. What is the primary risk?
A. Higher insurance premium
B. Unpaid change work
C. License expiration
D. Payroll withholding - Correct Answer - B
Work outside the contract scope without required authorization creates a
significant payment dispute.
A contractor's Group 1 license has a bid and job limitation of $100,000.
The contractor is preparing a $145,000 bid. What is the key issue?
A. The bid exceeds the group limit
B. The bid needs two bonds
pg. 3
, C. The project needs no license
D. The contractor must hire a second PQP - Correct Answer - A
Group 1 General Contractors have a $100,000 bid and job limitation.
An owner asks a contractor to begin work before the contract price and
scope are finalized. What is the greatest business risk?
A. Excess inventory
B. Scope and payment disputes
C. Higher depreciation
D. Delayed tax filing - Correct Answer - B
Starting without defined scope and price increases exposure to disputes
over compensation and responsibilities.
A contractor receives a progress payment but immediately uses the
entire amount to pay an unrelated company debt. What financial-control
problem is most apparent?
A. Poor depreciation
B. Weak cash-flow controls
C. Excess bonding
D. Incorrect estimating - Correct Answer - B
Project receipts should be managed against project obligations, payroll,
materials, and other cash requirements.
A South Carolina contractor's license application requires verification
that the business is authorized to conduct business in the state. Which
agency is associated with that verification?
pg. 4
LAW EXAM NEWEST 2026/ 2027 TEST BANK /
CONTRACTOR BUSINESS AND LAW EXAM PREP
WITH COMPLETE 300 REAL EXAM QUESTIONS AND
CORRECT VERIFIED ANSWERS/ ALREADY GRADED
A+ (MOST RECENT!!)
A commercial contractor is applying for a South Carolina General
Contractor license. Which individual must be designated for each
requested classification?
A. Project manager
B. Primary Qualifying Party
C. Registered agent
D. Financial officer - Correct Answer - B
South Carolina requires a Primary Qualifying Party (PQP) for each
classification or subclassification requested.
A contractor applies for a Group 2 General Contractor license. Which
financial measure satisfies the working-capital requirement?
A. $20,000
B. $30,000
C. $40,000
D. $60,000 - Correct Answer - C
Group 2 requires $40,000 in working capital.
pg. 1
,A Group 3 contractor wants to increase the firm's license limitation
using a surety bond rather than a financial statement. What bond amount
applies?
A. $60,000
B. $100,000
C. $150,000
D. $250,000 - Correct Answer: C
A South Carolina General Contractor Group 3 license requires a
$150,000 surety bond when using the bond option.
A contractor's financial statement shows $90,000 in working capital.
Which General Contractor group does that amount support based solely
on working capital?
A. Group 1
B. Group 2
C. Group 3
D. Group 4 - Correct Answer - B
Group 2 requires $40,000, while Group 3 requires $100,000 in working
capital.
A South Carolina contractor has passed the required technical
examination and wants PQP certification. Which additional examination
is required?
A. Federal tax exam
B. Business Management and Law exam
C. OSHA certification exam
D. Building-code exam - Correct Answer: B
pg. 2
,PQP/QP applicants must pass the South Carolina Business Management
and Law examination in addition to applicable technical requirements.
A contractor is preparing a bid and discovers that the estimated labor
cost was understated by $18,000. What should be reviewed first?
A. Job-cost estimate
B. Surety bond
C. Lien waiver
D. Payroll tax return - Correct Answer - A
The estimate should be reconciled against labor quantities, rates, and
assumptions before the bid is finalized.
A subcontractor begins additional work after receiving only a verbal
instruction from the superintendent. The written contract requires
approved change orders. What is the primary risk?
A. Higher insurance premium
B. Unpaid change work
C. License expiration
D. Payroll withholding - Correct Answer - B
Work outside the contract scope without required authorization creates a
significant payment dispute.
A contractor's Group 1 license has a bid and job limitation of $100,000.
The contractor is preparing a $145,000 bid. What is the key issue?
A. The bid exceeds the group limit
B. The bid needs two bonds
pg. 3
, C. The project needs no license
D. The contractor must hire a second PQP - Correct Answer - A
Group 1 General Contractors have a $100,000 bid and job limitation.
An owner asks a contractor to begin work before the contract price and
scope are finalized. What is the greatest business risk?
A. Excess inventory
B. Scope and payment disputes
C. Higher depreciation
D. Delayed tax filing - Correct Answer - B
Starting without defined scope and price increases exposure to disputes
over compensation and responsibilities.
A contractor receives a progress payment but immediately uses the
entire amount to pay an unrelated company debt. What financial-control
problem is most apparent?
A. Poor depreciation
B. Weak cash-flow controls
C. Excess bonding
D. Incorrect estimating - Correct Answer - B
Project receipts should be managed against project obligations, payroll,
materials, and other cash requirements.
A South Carolina contractor's license application requires verification
that the business is authorized to conduct business in the state. Which
agency is associated with that verification?
pg. 4
