North Carolina Landscape Contractor Practice Exam
SECTION 1: BUSINESS STRUCTURES & LEGAL REQUIREMENTS
Question 1
Which business entity is created by filing a certificate of formation with
the North Carolina Secretary of State and offers pass-through taxation
with liability protection?
A) Sole proprietorship
B) General partnership
C) Limited liability company
D) C corporation
Correct Answer: C
Rationale: An LLC combines pass-through taxation like a partnership
with limited liability protection for its members, making it a popular
choice for landscape contractors.
Question 2
A landscape contractor operating as a sole proprietor is personally liable
for:
A) Only business debts
B) Only employee injuries
,C) All business obligations without limit
D) Nothing if insurance is carried
Correct Answer: C
Rationale: A sole proprietor has unlimited personal liability for all
business debts and obligations. Personal assets can be seized to
satisfy business debts.
Question 3
Which structure requires a written partnership agreement under North
Carolina law to define profit-sharing and management?
A) Sole proprietorship
B) General partnership
C) S corporation
D) LLC
Correct Answer: B
Rationale: While not always legally required, a written partnership
agreement is strongly recommended for general partnerships to
define profit-sharing, management, and dissolution terms.
Question 4
The North Carolina Landscape Contractors' Licensing Board was
established primarily to:
,A) Increase state tax revenue
B) Protect public health, safety, and welfare
C) Promote landscape architecture
D) Regulate fertilizer sales
Correct Answer: B
Rationale: The NCLCLB's mission is to protect public health, safety,
and welfare by regulating the practice of landscape contracting and
ensuring qualified practitioners.
Question 5
Which of the following is required for a landscape contractor to obtain a
license in North Carolina?
A) Only a high school diploma
B) A qualifying individual with required experience, exam passage,
insurance, and bond
C) Only a business license
D) Only a vehicle registration
Correct Answer: B
Rationale: Licensure requires a qualifying individual who meets the
experience requirement, passes the examination, and maintains
proper insurance and surety bond.
, Question 6
What is the minimum general liability insurance coverage required for a
landscape contractor license in NC?
A) $100,000 per occurrence
B) $250,000 per occurrence
C) $500,000 per occurrence
D) $1,000,000 per occurrence
Correct Answer: C
Rationale: The minimum general liability insurance requirement is
$500,000 per occurrence for bodily injury and property damage
combined.
Question 7
How many hours of continuing education must a licensed landscape
contractor complete annually?
A) 4 hours
B) 8 hours
C) 12 hours
D) 16 hours
Correct Answer: B
Rationale: Licensed landscape contractors must complete 8 hours of
continuing education annually to maintain licensure.
SECTION 1: BUSINESS STRUCTURES & LEGAL REQUIREMENTS
Question 1
Which business entity is created by filing a certificate of formation with
the North Carolina Secretary of State and offers pass-through taxation
with liability protection?
A) Sole proprietorship
B) General partnership
C) Limited liability company
D) C corporation
Correct Answer: C
Rationale: An LLC combines pass-through taxation like a partnership
with limited liability protection for its members, making it a popular
choice for landscape contractors.
Question 2
A landscape contractor operating as a sole proprietor is personally liable
for:
A) Only business debts
B) Only employee injuries
,C) All business obligations without limit
D) Nothing if insurance is carried
Correct Answer: C
Rationale: A sole proprietor has unlimited personal liability for all
business debts and obligations. Personal assets can be seized to
satisfy business debts.
Question 3
Which structure requires a written partnership agreement under North
Carolina law to define profit-sharing and management?
A) Sole proprietorship
B) General partnership
C) S corporation
D) LLC
Correct Answer: B
Rationale: While not always legally required, a written partnership
agreement is strongly recommended for general partnerships to
define profit-sharing, management, and dissolution terms.
Question 4
The North Carolina Landscape Contractors' Licensing Board was
established primarily to:
,A) Increase state tax revenue
B) Protect public health, safety, and welfare
C) Promote landscape architecture
D) Regulate fertilizer sales
Correct Answer: B
Rationale: The NCLCLB's mission is to protect public health, safety,
and welfare by regulating the practice of landscape contracting and
ensuring qualified practitioners.
Question 5
Which of the following is required for a landscape contractor to obtain a
license in North Carolina?
A) Only a high school diploma
B) A qualifying individual with required experience, exam passage,
insurance, and bond
C) Only a business license
D) Only a vehicle registration
Correct Answer: B
Rationale: Licensure requires a qualifying individual who meets the
experience requirement, passes the examination, and maintains
proper insurance and surety bond.
, Question 6
What is the minimum general liability insurance coverage required for a
landscape contractor license in NC?
A) $100,000 per occurrence
B) $250,000 per occurrence
C) $500,000 per occurrence
D) $1,000,000 per occurrence
Correct Answer: C
Rationale: The minimum general liability insurance requirement is
$500,000 per occurrence for bodily injury and property damage
combined.
Question 7
How many hours of continuing education must a licensed landscape
contractor complete annually?
A) 4 hours
B) 8 hours
C) 12 hours
D) 16 hours
Correct Answer: B
Rationale: Licensed landscape contractors must complete 8 hours of
continuing education annually to maintain licensure.
