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Nevada Business and Law Exam: 100 Practice Questions with Answers & Rationales
Section 1: Nevada State Contractors Board & Licensing (Questions 1–20)
Q1. Which Nevada agency regulates and licenses contractors?
A) Nevada Department of Transportation
B) Nevada State Contractors Board (NSCB)
C) Nevada Secretary of State
D) Nevada Department of Business and Industry
Correct Answer: B
Rationale: The Nevada State Contractors Board (NSCB) administers contractor licensing,
enforces NRS Chapter 624, and investigates complaints against contractors.
Q2. Which chapter of the Nevada Revised Statutes (NRS) governs contractor licensing and
regulation?
A) NRS Chapter 338
B) NRS Chapter 616
C) NRS Chapter 624
D) NRS Chapter 618
Correct Answer: C
Rationale: NRS Chapter 624 is the primary statutory authority for the licensure and
regulation of contractors by the Nevada State Contractors Board.
Q3. How many members serve on the Nevada State Contractors Board?
A) 5
B) 7
C) 9
D) 11
Correct Answer: B
Rationale: NRS 624.030 specifies seven members: four licensed contractors and three public
members appointed by the Governor.
Q4. Who appoints the members of the Nevada State Contractors Board?
A) The Nevada Senate
B) The Nevada Assembly
C) The Governor of Nevada
D) The Nevada Supreme Court
Correct Answer: C
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Rationale: The Governor appoints all seven members of the NSCB—four licensed contractors
and three public members.
Q5. A quorum of the Nevada State Contractors Board requires at least how many
members?
A) 3
B) 4
C) 5
D) 7
Correct Answer: B
Rationale: A quorum is a simple majority of the full seven-member board, which is four
members.
Q6. How often must Nevada contractors renew their licenses?
A) Every year
B) Every 2 years (biennially)
C) Every 3 years
D) Every 5 years
Correct Answer: B
Rationale: Nevada contractors are required to renew their licenses biennially (every two
years). The biennial license fee is $600.
Q7. What is the minimum age requirement for an applicant seeking a contractor's license
in Nevada?
A) 18 years
B) 21 years
C) 25 years
D) No minimum age
Correct Answer: A
Rationale: An applicant for a contractor's license must be at least 18 years old as set forth in
NRS 624.260.
Q8. What is the minimum number of years of experience required for a qualifying
individual applying for a Nevada contractor's license?
A) 2 years
B) 3 years
C) 4 years
D) 5 years
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Correct Answer: C
Rationale: Under NRS 624.260, the qualifying individual must have at least four full years of
experience at a journeyman level, or as a foreman, supervisor, or contractor in the
classification for which the license is requested.
Q9. The three main license classifications in Nevada are:
A) Residential, Commercial, Industrial
B) Class A (Engineering), Class B (Building), Class C (Specialty)
C) General, Subcontractor, Consultant
D) Unlimited, Limited, Restricted
Correct Answer: B
Rationale: Nevada license categories are Class A (General Engineering), Class B (General
Building), and Class C (Specialty Contractor).
Q10. Which classification is NOT a contractor license type in Nevada?
A) Class A – General Engineering
B) Class B – General Building
C) Class C – Specialty
D) Class D – Residential Only
Correct Answer: D
Rationale: NRS 624 establishes three primary contractor license classifications: General
Engineering (Class A), General Building (Class B), and Specialty (Class C). Nevada does not
issue a separate Class D residential classification.
Q11. What is the primary purpose of contractor licensing in Nevada?
A) To guarantee contractors a profit
B) To protect the public through regulation of contracting activities
C) To eliminate competition
D) To establish contractor pricing
Correct Answer: B
Rationale: Contractor licensing is intended to protect consumers and the public by
establishing minimum standards and regulatory requirements.
Q12. When must a contractor, including subcontractors and specialty contractors, be
licensed in Nevada?
A) Within 30 days of starting work
B) Within 60 days of signing a contract
Nevada Business and Law Exam: 100 Practice Questions with Answers & Rationales
Section 1: Nevada State Contractors Board & Licensing (Questions 1–20)
Q1. Which Nevada agency regulates and licenses contractors?
A) Nevada Department of Transportation
B) Nevada State Contractors Board (NSCB)
C) Nevada Secretary of State
D) Nevada Department of Business and Industry
Correct Answer: B
Rationale: The Nevada State Contractors Board (NSCB) administers contractor licensing,
enforces NRS Chapter 624, and investigates complaints against contractors.
Q2. Which chapter of the Nevada Revised Statutes (NRS) governs contractor licensing and
regulation?
A) NRS Chapter 338
B) NRS Chapter 616
C) NRS Chapter 624
D) NRS Chapter 618
Correct Answer: C
Rationale: NRS Chapter 624 is the primary statutory authority for the licensure and
regulation of contractors by the Nevada State Contractors Board.
Q3. How many members serve on the Nevada State Contractors Board?
A) 5
B) 7
C) 9
D) 11
Correct Answer: B
Rationale: NRS 624.030 specifies seven members: four licensed contractors and three public
members appointed by the Governor.
Q4. Who appoints the members of the Nevada State Contractors Board?
A) The Nevada Senate
B) The Nevada Assembly
C) The Governor of Nevada
D) The Nevada Supreme Court
Correct Answer: C
, 2
Rationale: The Governor appoints all seven members of the NSCB—four licensed contractors
and three public members.
Q5. A quorum of the Nevada State Contractors Board requires at least how many
members?
A) 3
B) 4
C) 5
D) 7
Correct Answer: B
Rationale: A quorum is a simple majority of the full seven-member board, which is four
members.
Q6. How often must Nevada contractors renew their licenses?
A) Every year
B) Every 2 years (biennially)
C) Every 3 years
D) Every 5 years
Correct Answer: B
Rationale: Nevada contractors are required to renew their licenses biennially (every two
years). The biennial license fee is $600.
Q7. What is the minimum age requirement for an applicant seeking a contractor's license
in Nevada?
A) 18 years
B) 21 years
C) 25 years
D) No minimum age
Correct Answer: A
Rationale: An applicant for a contractor's license must be at least 18 years old as set forth in
NRS 624.260.
Q8. What is the minimum number of years of experience required for a qualifying
individual applying for a Nevada contractor's license?
A) 2 years
B) 3 years
C) 4 years
D) 5 years
, 3
Correct Answer: C
Rationale: Under NRS 624.260, the qualifying individual must have at least four full years of
experience at a journeyman level, or as a foreman, supervisor, or contractor in the
classification for which the license is requested.
Q9. The three main license classifications in Nevada are:
A) Residential, Commercial, Industrial
B) Class A (Engineering), Class B (Building), Class C (Specialty)
C) General, Subcontractor, Consultant
D) Unlimited, Limited, Restricted
Correct Answer: B
Rationale: Nevada license categories are Class A (General Engineering), Class B (General
Building), and Class C (Specialty Contractor).
Q10. Which classification is NOT a contractor license type in Nevada?
A) Class A – General Engineering
B) Class B – General Building
C) Class C – Specialty
D) Class D – Residential Only
Correct Answer: D
Rationale: NRS 624 establishes three primary contractor license classifications: General
Engineering (Class A), General Building (Class B), and Specialty (Class C). Nevada does not
issue a separate Class D residential classification.
Q11. What is the primary purpose of contractor licensing in Nevada?
A) To guarantee contractors a profit
B) To protect the public through regulation of contracting activities
C) To eliminate competition
D) To establish contractor pricing
Correct Answer: B
Rationale: Contractor licensing is intended to protect consumers and the public by
establishing minimum standards and regulatory requirements.
Q12. When must a contractor, including subcontractors and specialty contractors, be
licensed in Nevada?
A) Within 30 days of starting work
B) Within 60 days of signing a contract
